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

nine

months ended

June 30, 2019.

June 30, 2019

and

September 30, 2018,

goodwill was

$2,396,320

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

nine

months ended

June 30, 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

nine

months ended

June 30, 2019,

related to goodwill and intangible assets was a reduction of

$81,018.

The Company’s intangible assets consisted of the following:

	June 30,			September 30,
	2019			2018
Technology	$	635,045		$	648,208
Customer relationships		607,435			620,026
Trade name portfolio		220,886			225,464
Non-compete agreements		239,292			244,252
Patents		72,126			72,126
		1,774,784			1,810,076
Accumulated amortization		(477,819	)		(252,730	)
	$	1,296,965		$	1,557,346

	Three months ended				Nine months ended
	June 30,				June 30,
	2019		2018		2019		2018
Amortization expense	$	75,354	$	81,262	$	228,793	$	153,026

Estimated Amortization expense for the

twelve

months ended

June 30,

2020	$	305,695
2021		268,860
2022		225,455
2023		205,087
2024		180,507
Thereafter		111,361
Total estimated amortization expense	$	1,296,965