Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.21.2
Goodwill and Intangible Assets
3 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

2.    Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in a business combination. The Company does not amortize its goodwill, but instead tests for impairment annually in the fourth quarter and more frequently whenever events or changes in circumstances indicate that fair value of the asset may be less than the carrying value of the asset.

Changes to goodwill during the three months ended June 30, 2021 were as follows:

    

Total

Balance—March 31, 2021

$

4,282,984

Adjustments to goodwill

Balance— June 30, 2021

$

4,282,984

Intangible assets consist of the following at June 30, 2021 and March 31, 2021:

    

Patents & 

    

    

    

    

    

    

Exclusive

License

Customer

Non-Compete

Assembled

 

    

Agreement

    

Trademark

    

Relationships

    

Agreement

    

Workforce

Total

Useful Life

    

9.74 years

    

Indefinite

    

10 years

    

2 years

    

1 year

    

  

Gross carrying amount

$

1,306,031

$

2,505,907

$

1,431,680

$

61,366

$

275,720

$

5,580,704

Impairment

 

(316,388)

 

(1,905,907)

 

(857,298)

 

 

 

(3,079,593)

Accumulated amortization

 

(632,724)

 

 

(574,382)

 

(61,366)

 

(275,720)

 

(1,544,192)

Balance—June 30, 2021

$

356,919

$

600,000

$

$

$

$

956,919

Patents &

 

Exclusive

License

Customer

Non-Compete

Assembled

 

Agreement

Trademark

Relationships

Agreement

Workforce

Total

Useful Life

    

9.74 years

    

Indefinite

    

10 years

    

2 years

    

1 year

    

 

Gross carrying amount

$

1,306,031

$

2,505,907

$

1,431,680

$

61,366

$

275,720

$

5,580,704

Impairment

 

(316,388)

 

(1,905,907)

 

(857,298)

 

 

(3,079,593)

Accumulated amortization

 

(613,092)

 

 

(574,382)

 

(61,366)

 

(275,720)

(1,524,560)

Balance—March 31, 2021

$

376,551

$

600,000

$

$

$

$

976,551

Amortization expense for the three months ended June 30, 2021 and 2020 was $20,000 and $24,000, respectively. Amortization expense is classified as a component of general and administrative expenses in the accompanying condensed consolidated statements of operations.