GOODWILL AND

INTANGIBLE ASSETS

January 18, 2018,

the Company recorded intangible assets of

$1,850,000

and goodwill of

$2,603,688

in connection with the acquisition of Genasys, as described in Note

Acquisition. These intangible assets and goodwill are translated from Euros to U.S. dollars at the balance sheet date. Intangible assets, net of amortization, were

$1,557,346

and goodwill was

$2,445,990

September 30, 2018.

The goodwill attributable to the acquisition of Genasys is due to combining the mass messaging solutions and software development capabilities with existing LRAD products for enhanced offerings and the skill level of the workforce. The Company will continue to analyze the transaction and refine its calculation, as appropriate during the measurement period, which could affect the value of goodwill. Subsequent to the measurement period, the Company will periodically review goodwill for impairment in accordance with relevant accounting standards.

During the year ended

September 30, 2018,

the Company determined that certain patents were impaired. These patents supported products that are

longer sold by the Company. The Company recorded a non-cash loss on the impairment of these patents of

$11,133

for the year ended

September 30, 2018.

There was

impairment loss for the year ended

September 30, 2017.

The Company’s intangible assets consisted of the following:

	September 30,
	2018			2017
Technology	$	648,208		$	-
Customer relationships		620,026			-
Trade name portfolio		225,464			-
Non-compete agreements		244,252			-
Patents		72,126			108,247
		1,810,076			108,247
Accumulated amortization		(252,730	)		(52,558	)
	$	1,557,346		$	55,689

	Year Ended September 30,
	2018		2017
Amortization expense	$	231,901	$	7,216

Estimated Amortization Expense for the Years ended September 30,
2019	$	312,493
2020		312,493
2021		254,819
2022		231,075
2023		200,400
Thereafter		246,066
Total estimated amortization expense	$	1,557,346