Quarterly report pursuant to sections 13 or 15(d)

Prepaid Royalties

v2.4.0.8
Prepaid Royalties
9 Months Ended
Jun. 30, 2013
Prepaid Expense, Current [Abstract]  
Prepaid Royalties

Note 4 – Prepaid Royalties

 
Prepaid royalties represent payments made for the purchase of non-transferable, non-exclusive patent rights associated with a patent license. We expect the patent license to allow for development of future products in our digital line of periscopes. We are actively marketing the new periscopes, though we have yet to receive production orders utilizing the patent technology. We estimate the commercial life of the patent at 7 years. As of June 30, 2013, the unamortized balance of the patent license is $188 thousand. The royalty expenses for the associated patent license are amortized on a straight line basis starting in fiscal year 2013. The amortized royalty expense for the three and nine months ending June 30, 2013 was $8 thousand and $23 thousand, respectively, and the amortized royalty expense for the three and nine months ending July 1, 2012 was zero.