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7. INTANGIBLE ASSETS

9 Months Ended

Jun. 30, 2020

Finite-Lived Intangible Assets, Net [Abstract]

Intangible assets as of June 30, 2020 and September 30, 2019 consisted of the following:

	Estimated		June 30,			September 30,
	Useful Lives		2020			2019

Technology		3 years	$	520,000		$	520,000
Less: accumulated amortization				(375,553	)		(245,554	)
Intangible assets, net			$	144,447		$	274,446

Total amortization expense was $129,999 for the nine months ended June 30, 2020 and 2019, respectively.

Merger with RAAI Lighting, Inc.

On April 10, 2018, the Company entered into an Agreement and Plan of Merger with 500 Union Corporation, a Delaware corporation and a wholly owned subsidiary of the Company, and RAAI Lighting, Inc., a Delaware corporation. Pursuant to the Merger Agreement, the Company acquired all the outstanding shares of RAAI’s capital stock through a merger of Merger Sub with and into RAAI (the “Merger”), with RAAI surviving the Merger as a wholly owned subsidiary of the Company.

The fair value of the intellectual property associated with the assets acquired was $520,000 estimated by using a discounted cash flow approach based on future economic benefits. In summary, the estimate was based on a projected income approach and related discounted cash flows over five years, with applicable risk factors assigned to assumptions in the forecasted results.