OODWILL AND INTANGIBLE ASSETS

During the

nine

months ended

June 30, 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

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

350

“

ntangibles – Goodwill and Other – Testing Indefinite-Lived Assets for Impairment

”.

The Company’s intangible assets consist of the following:

	June 30, 2018							September 30, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Technology	$	650,767	$	(42,610	)	$	608,157	$	-	$	-		$	-
Customer relationships		622,474		(40,757	)		581,717		-		-			-
Trade name portfolio		226,354		(20,749	)		205,605		-		-			-
Non-compete agreements		245,216		(37,464	)		207,752		-		-			-
Patents		108,247		(57,970	)		50,277		108,247		(52,558	)		55,689
	$	1,853,058	$	(199,550	)	$	1,653,508	$	108,247	$	(52,558	)	$	55,689

The amortization expense for the

three

months ended

June 30, 2018

and

2017

was

$81,262

and

$1,922,

respectively. The amortization expense for the

nine

months ended

June 30, 2018

and

2017

was

$153,026

and

$5,602,

respectively.

Estimated Future Amortization Expense for the Years Ended September 30, 2018 (July 1, 2018 through September 30, 2018)	$	79,030
2019		316,117
2020		316,117
2021		258,219
2022		234,378
Thereafter		449,647
Total futue estimated amortization expense	$	1,653,508