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Note 8 – Intangible Assets

12 Months Ended

Apr. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

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.