Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.6.0.2
Intangible Assets and Goodwill
6 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill
Intangible Assets and Goodwill

The summary of intangible assets and goodwill is a follows (amounts in thousands):
 
 
 
 
December 31, 2016
 
June 30, 2016
 
 
Description (amounts in thousands)
 
Amortization
Period
 
Amount
 
Accumulated
Amortization
 
Carrying
Value
 
 
Amount
 
Accumulated
Amortization
 
Carrying
Value
 
Wetpaint technology
 
60 months
 
$
4,952

 
 
$
(3,458
)
 
 
$
1,494

 
 
$
4,952

 
 
$
(3,276
)
 
 
$
1,676

 
Wetpaint trademarks
 
276 months
 
1,453

 
 
(438
)
 
 
1,015

 
 
1,453

 
 
(415
)
 
 
1,038

 
Wetpaint customer relationships
 
60 months
 
917

 
 
(837
)
 
 
80

 
 
917

 
 
(827
)
 
 
90

 
Choose Digital licenses
 
60 months
 
829

 
 
(589
)
 
 
240

 
 
829

 
 
(559
)
 
 
270

 
Choose Digital software
 
60 months
 
627

 
 
(257
)
 
 
370

 
 
627

 
 
(212
)
 
 
415

 
DraftDay tradename
 
84 months
 
180

 
 
(61
)
 
 
119

 
 
180

 
 
(38
)
 
 
142

 
Draftday non-compete agreements
 
6 months
 
30

 
 
(30
)
 
 

 
 
30

 
 
(30
)
 
 

 
DraftDay internally generated capitalized software
 
60 months
 
1,498

 
 
(485
)
 
 
1,013

 
 
1,498

 
 
(303
)
 
 
1,195

 
DraftDay customer relationships
 
24 months
 
556

 
 
(556
)
 
 

 
 
556

 
 
(351
)
 
 
205

 
Rant trademarks
 
120 months
 
2,700

 
 
(124
)
 
 
2,576

 
 

 
 

 
 

 
Rant content
 
24 months
 
650

 
 
(149
)
 
 
501

 
 

 
 

 
 

 
Rant technology
 
60 months
 
1,500

 
 
(138
)
 
 
1,362

 
 

 
 

 
 

 
Rant advertising relationships
 
24 months
 
650

 
 
(149
)
 
 
501

 
 

 
 

 
 

 
Other
 
various
 
326

 
 
(24
)
 
 
302

 
 
326

 
 
(18
)
 
 
308

 
Total
 
 
 
$
16,868

 
 
$
(7,295
)
 
 
$
9,573

 
 
$
11,368

 
 
$
(6,029
)
 
 
$
5,339

 

 
See Note 3, Summary of Significant Accounting Policies, for a discussion of the write-downs recorded with respect to intangible assets related to the Wetpaint and Choose Digital businesses in the quarter ended December 31, 2015 and to the DraftDay business in the quarter ended June 30, 2016. The changes in the gross amounts and useful lives of intangibles related to the Wetpaint, Choose Digital and DraftDay businesses, and to internally generated capitalized software, are a result of these write-downs during the three months ended December 31, 2015 and June, 30, 2016, as well as the abandonment of certain technology as of January 1, 2016, and internal development costs. See Note 6, Acquisitions, for a detailed description of DraftDay and Rant assets and liabilities purchased and their fair values on the date of the acquisition.

Amortization of intangible assets included in selling, general and administrative expenses for the six months ended December 31, 2016 and 2015 amounted to approximately $1,266,000 and $2,123,000, respectively.  

Future annual amortization expense expected is as follows amounts in thousands):
Years ending June 30,
 
2017
$
2,370

2018
$
3,026

2019
$
1,730

2020
$
1,367

2021
$
1,036



Goodwill consists of the following:
Description
Amount
Balance at July 1, 2016
$
11,270

Rant preliminary purchase price allocation
7,589

Balance at December 31, 2016
$
18,859