v3.26.1
Note 5 - Finite-life Intangible Assets
12 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Intangible Asset [Text Block]

Note 5.

Finite-life Intangible Assets

 

The carrying value of patents and trademarks includes the original cost of obtaining the patents, periodic renewal fees, and other costs associated with maintaining and defending patent and trademark rights. Patents and trademarks are amortized over their estimated useful lives, generally 15 and 12 years, respectively. Accumulated amortization and impairment charges were $487,000 and $428,000 as of June 30, 2026, and 2025, respectively. 

 

The Company assesses intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be fully recoverable. If impairment indicators are present, the Company performs a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to these long-lived assets to their carrying value. In the fourth quarter of fiscal 2025, the Company determined that the current carrying value of several of its patents was not recoverable. An impairment charge of $212,000 was recorded during the year ended June 30, 2025. The impairment loss is included within selling, general, and administrative expenses within the Statement of Operations.

 

The activity and net balances of finite-life intangible assets are as follows:

 

  

Year Ended June 30,

 
  

2026

  

2025

 

Balance, beginning

 $371,000  $657,000 

Additions

  66,000   59,000 

Amortization expense

  (58,000)  (133,000)

Impairment

     (212,000)

Balance, ending

 $379,000  $371,000 

 

 

Based on the carrying value as of June 30, 2026, future amortization is expected to be as follows:

 

Fiscal years ending June 30:

    
     

2027

 $31,000 

2028

  30,000 

2029

  30,000 

2030

  29,000 

2031

  24,000 

Thereafter

  235,000 

Total

 $379,000