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Note 8 – Intangible Assets | 12 Months Ended
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Apr. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Note 8 – Intangible Assets | Note 8 – Intangible Assets Intangible assets relate to acquisitions completed by the Company, including those described in Note 1, and were as follows:
|  | April 30, 2024 |  | April 30, 2023
|  | Gross Value |  | Accumulated Amortization |  | Net Value |  | Gross Value |  | Accumulated Amortization |  | Net Value
Proprietary technology |  | $ | 4,282,001 |  |  | $ | (1,917,612 | ) |  | $ | 2,364,389 |  |  | $ | 4,967,000 |  |  | $ | (1,271,112 | ) |  | $ | 3,695,888 |
Non-compete agreements |  |  | 65,000 |  |  |  | (65,000 | ) |  |  | — |  |  |  | 81,000 |  |  |  | (56,667 | ) |  |  | 24,333 |
Customer relationships |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 39,000 |  |  |  | (18,106 | ) |  |  | 20,894 |
Total finite-lived assets |  |  | 4,347,001 |  |  |  | (1,982,612 | ) |  |  | 2,364,389 |  |  |  | 5,087,000 |  |  |  | (1,345,885 | ) |  |  | 3,741,115 |
Brand name |  |  | 1,430,000 |  |  |  | — |  |  |  | 1,430,000 |  |  |  | 3,152,000 |  |  |  | — |  |  |  | 3,152,000 |
Total indefinite-lived assets |  |  | 1,430,000 |  |  |  | — |  |  |  | 1,430,000 |  |  |  | 3,152,000 |  |  |  | — |  |  |  | 3,152,000 |
Total intangible assets, net |  | $ | 5,777,001 |  |  | $ | (1,982,612 | ) |  | $ | 3,794,389 |  |  | $ | 8,239,000 |  |  | $ | (1,345,885 | ) |  | $ | 6,893,115 |
Proprietary technology and non-compete agreements are being amortized over six years and three years, respectively. Customer relationships are being amortized over seven years. Goodwill and Brand name are not amortized but evaluated for impairment on a quarterly basis. As of April 30, 2024, expected amortization expense for finite-lived intangible assets for the next five years is as follows:
| Fiscal Year Ended: |  |
| 2025 |  |  | $ | 709,316 |
| 2026 |  |  |  | 709,316 |
| 2027 |  |  |  | 709,316 |
| 2028 |  |  |  | 236,441 |
| 2029 |  |  |  | — |
| Thereafter |  |  |  | — |
| Total |  |  | $ | 2,364,389 |
Goodwill represents the future economic benefit arising from other assets acquired in an acquisition that are not individually identified and separately recognized. The composition of, and changes in goodwill, consist of:
| Date |  | Entity |  | Goodwill
| January 2020 |  |  | Rotor Riot |  | $ | 1,849,073 |
| November 2020 |  |  | Fat Shark |  |  | 6,168,260 |
| May 2021 |  |  | Skypersonic |  |  | 2,826,918 |
| August 2021 |  |  | Teal Drones |  |  | 8,995,499 |
| April 2023 - Impairment loss |  |  | Skypersonic |  |  | (2,826,918 | )
| Balance at April 30, 2023 |  |  |  |  | $ | 17,012,832 |
| February 2024 – Divestiture |  |  | Rotor Riot, Fat Shark |  |  | (7,924,282 | )
| Balance at April 30, 2024 |  |  |  |  | $ | 9,088,550 |
Included in the amounts presented above is goodwill related to other insignificant transactions. Following the establishment of the Enterprise and Consumer segments, management evaluated the long-term business strategy of each segment. This resulted in the Enterprise segment narrowing its focus on the military and other government agencies. It was determined that Skypersonic's technology would be re-focused for the near term on military applications and consolidated into the operations of Teal. The Company completes a formal evaluation of the carrying value of its intangible assets, including goodwill, at the end of each fiscal year. Based on (i) the operating results for Skypersonic since its acquisition in May 2021, (ii) its consolidation into Teal, (iii) our current expectations of its future business conditions and trends, including its projected revenues, expenses, and cash flows, the Company recognized an impairment charge of $2,826,918 in April 2023. During FY2024, an impairment change of $412,999 was recognized related to Skypersonic’s proprietary technology.

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