Intangible Assets

6 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Note 4 - Intangible Assets

Intangible assets are stated at the lower of cost or fair value. Customer lists and vendor relationships are amortized on a straight-line basis over five years, representing the period over which the Company expects to receive future economic benefits from these assets.

Annual amortization expense is calculated based on the straight-line method over the product's estimated economic life. Amortization of product development costs incurred begins when the related products are available for sale to customers. Amortization of product development costs was $20,416 and $0 for the three months ended December 31, 2020 and 2019, respectively. Amortization of product development costs was $32,927 and $0 for the six months ended December 31, 2020 and 2019, respectively. Amortization of these costs are included in cost of sales in the Company's condensed consolidated statements of operations.

The following tables shows goodwill, finite-lived intangible assets, accumulated amortization, and the impairment charges:


December 31, 2020
	Cost	Accumulated Amortization	Net Book Value	Impairment	Total
Goodwill	$ 834,220	$ -	$ 834,220	$ -	$ 834,220
Finite-lived assets:
Customer list	$ 922,053	$ (221,961)	$ 700,092	$ -	$ 700,092
Vendor relationships	484,816	(119,992)	364,824	-	364,824
Capitalized product development costs	402,255	(34,464)	367,791	-	367,791
	$ 1,809,124	$ (376,417)	$ 1,432,707	$ -	$1,432,707

June 30, 2020
	Cost	Accumulated Amortization	Net Book Value	Impairment	Total
Goodwill	$ 1,634,507	$ -	$ 1,634,507	$ (800,287)	$ 834,220
Finite-lived assets:
Customer list	$ 881,000	$ (132,147)	$ 748,853	$ -	$ 748,853
Vendor relationships	479,000	(71,847)	407,153	-	407,153
Noncompete agreements	1,600,000	(400,000)	1,200,000	(1,200,000)	-
Capitalized product development costs	281,845	(1,536)	280,309	-	280,309
	$ 3,241,845	$ (605,530)	$ 2,636,315	$(1,200,000)	$1,436,315

Estimated amortization expense related to intangible assets for the next five years is as follows:



Period ending December 31,
2021	$ 387,118
2022	387,118
2023	363,406
2024	255,885
2025	39,181
	$ 1,432,707