Note 7 – Intangible Assets |
Note 7 – Intangible Assets
Intangible assets relate to acquisitions completed by the Company, including
those described in Note 1. Intangible assets as of April 30 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
April 30, 2022 |
|
April 30, 2021 |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net Carrying
Value |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net Carrying
Value |
Proprietary technology |
$ |
1,098,000 |
|
|
$ |
(219,267 |
) |
|
$ |
878,733 |
|
|
$ |
272,000 |
|
|
$ |
(27,200 |
) |
|
$ |
244,800 |
|
Non-compete agreements |
|
81,000 |
|
|
|
(29,667 |
) |
|
|
51,333 |
|
|
|
16,000 |
|
|
|
(2,667 |
) |
|
|
13,333 |
|
Customer relationships |
|
39,000 |
|
|
|
(12,535 |
) |
|
|
26,465 |
|
|
|
39,000 |
|
|
|
(6,964 |
) |
|
|
32,036 |
|
Total finite-lived assets |
|
1,218,000 |
|
|
|
(261,469 |
) |
|
|
956,531 |
|
|
|
327,000 |
|
|
|
(36,831 |
) |
|
|
290,169 |
|
Brand name |
|
1,722,000 |
|
|
|
— |
|
|
|
1,722,000 |
|
|
|
1,722,000 |
|
|
|
— |
|
|
|
1,722,000 |
|
Trademark |
|
20,000 |
|
|
|
— |
|
|
|
20,000 |
|
|
|
20,000 |
|
|
|
— |
|
|
|
20,000 |
|
Total indefinite-lived assets |
|
1,742,000 |
|
|
|
— |
|
|
|
1,742,000 |
|
|
|
1,742,000 |
|
|
|
— |
|
|
|
1,742,000 |
|
Total intangible assets, net |
$ |
2,960,000 |
|
|
$ |
(261,469 |
) |
|
$ |
2,698,531 |
|
|
$ |
2,069,000 |
|
|
$ |
(36,831 |
) |
|
$ |
2,032,169 |
|
As of April 30, 2022, expected amortization expense for the unamortized finite-lived intangible assets for the
next five years is as follows:
|
Fiscal Year Ended: |
|
|
|
2023 |
|
|
$ |
224,638 |
|
|
2024 |
|
|
|
221,972 |
|
|
2025 |
|
|
|
197,638 |
|
|
2026 |
|
|
|
170,438 |
|
|
2027 |
|
|
|
141,845 |
|
|
Total |
|
|
$ |
956,531 |
|
Goodwill is a separately stated intangible asset and
represents the excess of the purchase price of acquisitions above the net assets acquired.
The composition of, and changes in goodwill consist
of:
Date |
|
Acquisition |
|
Goodwill |
January 2020 |
|
|
Rotor Riot |
|
|
$ |
1,849,073 |
|
November 2020 |
|
|
Fat Shark |
|
|
|
6,168,260 |
|
Balance at April 30, 2021 |
|
|
|
|
|
|
8,017,333 |
|
May 2021 |
|
|
Skypersonic |
|
|
|
2,826,918 |
|
August 2021 |
|
|
Teal Drones |
|
|
|
14,294,499 |
|
Balance at April 30, 2022 |
|
|
|
|
|
$ |
25,138,750 |
|
Proprietary technology and non-compete
agreements are being amortized over 5 and 3 years, respectively. Goodwill and Brand name are not amortized but evaluated for
impairment on a quarterly basis.
|