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6. INTANGIBLE ASSETS | 12 Months Ended
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Sep. 30, 2020
Finite-Lived Intangible Assets, Net [Abstract] |
INTANGIBLE ASSETS | On December 20, 2018, the Company completed the Mergers with Cure Based Development and acquired certain assets, including the trademark "cbdMD" and its variants and certain other intellectual property. The trademark is the cornerstone of this subsidiary and is key as we create and distribute products and continue to build this brand. We believe the trademark does not have limits on the time it will contribute to the generation of cash flows and therefore we have identified these as indefinite-lived intangible assets (see Note 2 for more information). In September 2019, the Company purchased the rights to the trademark name HempMD for $50,000. This trademark will be used in the marketing and branding of certain products to be released under this brand name. We believe the trademark does not have limits on the time it will contribute to the generation of cash flows and therefore we have identified these as indefinite-lived intangible assets. Intangible assets as of September 30, 2020 and 2019 consisted of the following:
|  | September 30, |  |  | September 30, |
|  | 2020 |  |  | 2019 |
Trademark related to cbdMD |  | $ | 21,585,000 |  |  | $ | 21,585,000 |
Trademark for HempMD |  |  | 50,000 |  |  |  | 50,000 |
Total |  |  | 21,635,000 |  |  |  | 21,635,000 |
The Company performs an impairment analysis at August 1 annually on the indefinite-lived intangible assets following the guidance in ASC 350-30-35-18. Fair value referenced here is determined using the guidance in FASB ASC Topic 820. Our annual impairment analysis includes a qualitative assessment to determine if it is necessary to perform the quantitative impairment test. In performing a qualitative assessment, we review events and circumstances that could affect the significant inputs used to determine if the fair value is less than the carrying value of the intangible assets. In addition, intangible assets will be tested on an interim basis if an event or circumstance indicates that it is more likely than not that an impairment loss has been incurred and the Company evaluates the indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. All assets related to the discontinued operations were impaired at September 30, 2019 – see Note 16 for impairments related to discontinued operations. In light of the COVID-19 global pandemic and the impact of volatility resulting in a downturn in general business conditions, we have assessed the current environment, business operations and reviewed various items including those listed below to determine whether the current circumstances indicate that it is more likely than not that an impairment has been incurred to an indefinite lived intangible asset:
● | Our current business revenue has not declined;
● | Our supply chains have not been impacted;
● | Our workforce has been able to successfully conduct business, manufacture products and service our customers;
● | We have not had an impact on customer payments for products;
● | The business has continued to exceed internal projections;
● | Our market capitalization has not declined during COVID-19; and
● | Finally, we assessed the current state of COVID-19. As this is a relatively new development, approximately six months old, we do not believe there is enough information to determine the overall long term impact on business, the economy and the market,
The Company performed a qualitative and quantitative analysis for the year ended September 30, 2020 and has determined there has been no impairment.

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- Definition The entire disclosure for all or part of the information related to 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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