| 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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January 31, 2023 |
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April 30, 2022 |
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Gross Value |
|
Accumulated Amortization |
|
Net Value |
|
Gross Value
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|
Accumulated Amortization |
|
Net Value |
| Proprietary technology |
|
$ |
4,967,000 |
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|
$ |
(631,997 |
) |
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$ |
4,335,003 |
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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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(49,916 |
) |
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31,084 |
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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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(16,713 |
) |
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22,287 |
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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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(698,626 |
) |
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4,388,374 |
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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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$ |
(698,626 |
) |
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$ |
7,560,374 |
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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 January 31, 2023, 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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$ |
217,371 |
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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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$ |
4,388,374 |
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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 |
|
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Rotor Riot |
|
$ |
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 January 31, 2023 |
|
|
|
|
$ |
19,839,750 |
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