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Note 5 - Goodwill and Intangible Assets | 6 Months Ended
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Mar. 31, 2018
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. G OODWILL AND INTANGIBLE ASSETS During the three months ended March 31, 2018, the Company recorded intangible assets of $1,850,000 and goodwill of $2,603,687 in connection with the acquisition of Genasys, as described in Note 4. Identifiable intangible assets are amortized over their useful lives based upon a number of assumptions including the estimated period of economic benefit and utilization. The Company will assess the impairment of identifiable amortized intangible assets when events and circumstances indicate the carrying value of the assets might not be recoverable. 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 acquired workforce. The Company will continue to analyze the transaction and refine its calculations, 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 ASC Topic 350 “ I ntangibles – Goodwill and Other – Testing Indefinite-Lived Assets for Impairment ”. The Company’s intangible assets consist of the following:
|  | March 31, 2018 |  |  | September 31, 2017 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Technology |  | $ | 690,000 |  |  | $ | (20,536 | ) |  | $ | 669,464 |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Customer relationships |  |  | 660,000 |  |  |  | (19,642 | ) |  |  | 640,358 |  |  |  | - |  |  |  | - |  |  |  | - |
Trade name portfolio |  |  | 240,000 |  |  |  | (10,000 | ) |  |  | 230,000 |  |  |  | - |  |  |  | - |  |  |  | - |
Non-compete agreements |  |  | 260,000 |  |  |  | (18,056 | ) |  |  | 241,944 |  |  |  | - |  |  |  | - |  |  |  | - |
Patents |  |  | 108,247 |  |  |  | (56,166 | ) |  |  | 52,081 |  |  |  | 108,247 |  |  |  | (52,558 | ) |  |  | 55,689 |
|  | $ | 1,958,247 |  |  | $ | (124,400 | ) |  | $ | 1,833,847 |  |  | $ | 108,247 |  |  | $ | (52,558 | ) |  | $ | 55,689 |
The amortization expense for the three months ended March 31, 2018 and 2017 was $70,038 and $1,859, respectively. The amortization expense for the six months ended March 31, 2018 and 2017 was $71,842 and $3,681, respectively.
Estimated Future Amortization Expense Years Ended September 30, |  |  |  |
2018 (April 1, 2018 through September 30, 2018) |  | $ | 166,689 |
2019 |  |  | 333,771 |
2020 |  |  | 333,448 |
2021 |  |  | 271,771 |
2022 |  |  | 246,363 |
Thereafter |  |  | 481,805 |
Total estimated amortization expense |  | $ | 1,833,847 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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