GOODWILL AND INTANGIBLE ASSETS

Goodwill is attributable to the acquisition of Genasys and 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 periodically reviews goodwill for impairment in accordance with relevant accounting standards. There were

additions or impairments to goodwill during the

three

months ended

December 31, 2018.

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

three

months ended

December 31, 2018.

Intangible assets and goodwill related to Genasys are translated from Euros to U.S. dollars at the balance sheet date. The net impact of foreign currency exchange differences arising during the period related to goodwill and intangible assets was a reduction of

$54,009.

The Company’s intangible assets consisted of the following:

	December 31,			September 30,
	2018			2018
Technology	$	639,381		$	648,208
Customer relationships		611,582			620,026
Trade name portfolio		222,394			225,464
Non-compete agreements		240,926			244,252
Patents		72,126			72,126
		1,786,409			1,810,076
Accumulated amortization		(326,837	)		(252,730	)
	$	1,459,572		$	1,557,346

	December 31,		December 31,
	2018		2017
Amortization expense	$	76,807	$	1,804

Estimated amortization expense for the

twelve

months ended

December 31,

2019	$	307,884
2020		307,633
2021		230,373
2022		226,957
2023		183,869
Thereafter		202,856
Total estimated amortization expense	$	1,459,572