The interim consolidated financial statements of Bio-Techne Corporation (formerly Techne Corporation) and subsidiaries, (the Company) presented here have been prepared by the Company and are unaudited. They have been prepared in accordance with accounting principles generally accepted in the United States of America and with instructions to Form 10-Q and Article 10 of Regulation S-X. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. All such adjustments are of a normal recurring nature.

 

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company's Consolidated Financial Statements and Notes thereto for the fiscal year ended June 30, 2015, included in the Company's Annual Report on Form 10-K for fiscal 2015. A summary of significant accounting policies followed by the Company is detailed in the Company's Annual Report on Form 10-K for fiscal 2015. The Company follows these policies in preparation of the interim unaudited condensed consolidated financial statements.

 

 

The Company's available-for-sale securities are carried at fair value using Level 1 and Level 2 inputs. The fair value of the Company's available-for-sale investments at September 30, 2015 and June 30, 2015 were $38.4 million and $56.4 million, respectively. The decrease was caused by the maturity of $3.9 million of available for sale securities with the remainder due to the change in the fair value of the Company's investment in ChemoCentryx, Inc. (CCXI). The amortized cost basis of the Company's available-for-sale investments at September 30, 2015 and June 30, 2015 were $29.5 million and $33.6 million, respectively.

 

 

 

Inventories consist of (in thousands):

 

 

At September 30, 2015, the Company had $59.0 million of inventory compared to $50.0 million as of June 30, 2015. The increase is primarily driven by the acquisition of Cliniqa Corporation in July 2015. At both September 30, 2015 and June 30, 2015, the Company had approximately $24 million of excess protein, antibody and chemically-based inventory on hand which was not valued.

 

 

4

 

 

 

Property and equipment consist of (in thousands):

 

 

 

Intangible assets consist of (in thousands):

 

 

Changes to the carrying amount of net intangible assets for the quarter ended September 30, 2015 consist of (in thousands):

 

 

The estimated future amortization expense for intangible assets as of September 30, 2015 is as follows (in thousands):

 

 

 

5

 

 

 

Changes to the carrying amount of goodwill for the quarter ended September 30, 2015 consist of (in thousands):