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 were as follows:
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October 31, 2022 |
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April 30, 2022 |
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Gross
Value |
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Accumulated
Amortization |
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Net Value |
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Gross Value
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Accumulated
Amortization |
|
Net Value |
Proprietary technology |
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$ |
4,967,000 |
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(422,773 |
) |
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$ |
4,544,227 |
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$ |
1,098,000 |
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$ |
(219,267 |
) |
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$ |
878,733 |
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Non-compete agreements |
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|
81,000 |
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(43,166 |
) |
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37,834 |
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81,000 |
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(29,667 |
) |
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|
51,333 |
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Customer relationships |
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39,000 |
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(15,320 |
) |
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|
23,680 |
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39,000 |
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(12,535 |
) |
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26,465 |
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Total finite-lived assets |
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5,087,000 |
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(481,259 |
) |
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4,605,741 |
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1,218,000 |
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(261,469 |
) |
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956,531 |
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Brand name |
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3,152,000 |
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— |
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3,152,000 |
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1,722,000 |
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— |
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1,722,000 |
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Trademark |
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20,000 |
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— |
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20,000 |
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|
20,000 |
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— |
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|
20,000 |
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Total indefinite-lived assets |
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3,172,000 |
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— |
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3,172,000 |
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|
1,742,000 |
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— |
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1,742,000 |
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Total intangible assets, net |
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$ |
8,259,000 |
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$ |
(481,259 |
) |
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$ |
7,777,741 |
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$ |
2,960,000 |
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$ |
(261,469 |
) |
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$ |
2,698,531 |
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Proprietary
technology and non-compete agreements are being amortized over five to six years and three years, respectively. Customer relationships
is being amortized over seven years. Goodwill and Brand name are not amortized but evaluated for impairment on a quarterly basis.
As
of October 31, 2022, expected amortization expense for finite-lived intangible assets for the next five years is as follows:
Fiscal Year Ended: |
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2023 |
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$ |
434,738 |
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2024 |
|
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|
866,805 |
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2025 |
|
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|
842,471 |
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2026 |
|
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|
815,271 |
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2027 |
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|
786,679 |
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Thereafter |
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859,777 |
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Total |
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$ |
4,605,741 |
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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:
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Date |
|
Acquisition |
|
Goodwill |
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January
2020 |
|
|
Rotor Riot |
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$ |
1,849,073 |
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November
2020 |
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Fat Shark |
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|
6,168,260 |
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Balance
at April 30, 2021 |
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|
8,017,333 |
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May
2021 |
|
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Skypersonic |
|
|
2,826,918 |
|
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August
2021 |
|
|
Teal Drones |
|
|
8,995,499 |
|
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Balance
at April 30, 2022 and October 31, 2022 |
|
|
|
|
$ |
19,839,750 |
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