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COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

9 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

NOTE 4. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

Inventory

Inventory is stated at the lower of cost (first-in, first-out) or market and consists of the following (in thousands):

	March 31, 2016		June 30, 2015
Raw materials /purchased components	$	2,031	$	2,025
Work in process		949		1,030
Sub-assemblies /finished components		993		1,095
Finished goods		145		160
Total inventory	$	4,118	$	4,310

Intangibles

Intangibles consist of the following (in thousands):

	March 31, 2016			June 30, 2015
Capitalized software development costs	$	73		$	73
Covenant not to compete		52			52
Trade name		50			54
Customer list and backlog		316			316
Patent-related costs		96			96
Total intangibles	$	587		$	591
Less accumulated amortization		(145	)		(44	)
		442			547

Capitalized software development costs relate to internally developed software, which are being amortized over the estimated minimum unit sales of the underlying product which was released during the fourth quarter of fiscal 2015. Both the covenant not to compete and the customer list and backlog relate to assets acquired in conjunction with the business acquisitions more fully described in Note 2 and are being amortized over various periods not to exceed ten years. The trade name relates exclusively to Fineline Molds and has an indefinite life, subject to impairment loss consideration annually, and more frequently if certain conditions exist (see Note 3). Patent-related costs consist of legal fees incurred in connection with patent applications, which we began amortizing in the third quarter of fiscal 2016 upon the related patent issuance, over a period of seven years, the estimated life of the product that is currently utilizing the patented technology.