XML 20 R9.htm IDEA: XBRL DOCUMENT

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

6 Months Ended

Dec. 31, 2017

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 net realizable value and consists of the following (in thousands):


	December 31, 2017		June 30, 2017
Raw materials /purchased components	$	1,157	$	1,127
Work in process		894		747
Sub-assemblies /finished components		992		1,018
Finished goods		153		193
Total inventory	$	3,196	$	3,085

Investments

Investments are stated at market value and consist of the following (in thousands):

December 31,
2017

June 30,

2017

Marketable equity securities

870

718

Investments at December 31, 2017 and June 30, 2017 had an aggregate cost basis of $961,000 and $663,000, respectively. During the quarter ended December 31, 2017 the investments incurred unrealized losses of $101,000 offset by unrealized gains of $86,000. During the six months ended December 31, 2017, the investments incurred unrealized losses of $177,000 offset by unrealized gains of $31,000 and related income tax benefit of approximately $22,000 recorded in other comprehensive income. At June 30, 2017 the investments included net unrealized gains of $55,000 (unrealized gains of $57,000 offset by unrealized losses of $2,000) and related tax expense of approximately $22,000 recorded in other comprehensive income.

Intangibles

Intangibles consist of the following (in thousands):


	December 31, 2017			June 30, 2017
Covenant not to compete	$	52		$	52
Trade name		30			50
Customer list and backlog		70			167
Patent-related costs		168			153
Total intangibles	$	320		$	422
Less accumulated amortization		(126	)		(102	)
	$	194		$	320

Both the covenant not to compete and the customer list and backlog relate to assets acquired in conjunction with the business acquisitions described in Note 2 above and are being amortized over various periods not to exceed ten years. During the quarter ended December 31, 2017, we impaired the remaining unamortized balance of the customer list related to Fineline in conjunction with our impairment loss assessment. The trade name relates exclusively to Fineline and has an indefinite life, subject to impairment loss assessment annually, or more frequently if certain conditions exist (see Note 3). Patent-related costs consist of legal fees incurred in connection with both patent applications and a patent issuance, and will be amortized over the estimated life of the product(s) that is or will be utilizing the technology, or expensed immediately in the event the patent office denies the issuance of the patent.