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

six

months ended

March 31, 2019.

March 31, 2019

and

September 30, 2018,

goodwill was

$2,364,633

and

$2,445,990,

respectively.

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

six

months ended

March 31, 2019.

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

six

months ended

March 31, 2019,

related to goodwill and intangible assets was a reduction of

$130,403.

The Company’s intangible assets consisted of the following:

	March 31,			September 30,
	2019			2018
Technology	$	626,648		$	648,208
Customer relationships		599,403			620,026
Trade name portfolio		217,965			225,464
Non-compete agreements		236,128			244,252
Patents		72,126			72,126
		1,752,270			1,810,076
Accumulated amortization		(396,561	)		(252,730	)
	$	1,355,709		$	1,557,346

	Three months ended				Six months ended
	March 31,				March 31,
	2019		2018		2019		2018
Amortization expense	$	76,633	$	70,038	$	153,440	$	71,842

Estimated Amortization Expense for the twelve months ended March 31,
2020	$	301,741
2021		285,128
2022		222,575
2023		213,376
2024		178,288
Thereafter		154,601
Total estimated amortization expense	$	1,355,709