XML 24 R13.htm IDEA: XBRL DOCUMENT v3.22.0.1
INTANGIBLE ASSETS
 3 Months Ended 12 Months Ended
Sep. 30, 2021
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
INTANGIBLE ASSETS

NOTE 6. INTANGIBLE ASSETS

 

Intangible assets consisted of the following as of September 30, 2021 and June 30, 2021:

 

   September 30,   June 30, 
   2021   2021 
Customer relationships  $777,375   $777,375 
Brand name   1,199,965    1,199,965 
Domain name   36,913    36,913 
Recipes   1,221,601    1,221,601 
Non-compete agreement   274,982    274,982 
Internally developed software   217,990    217,990 
Total   3,728,826    3,728,826 
Less : accumulated amortization   (1,469,332)   (1,387,023)
Net intangibles  $2,259,494   $2,341,803 

 

CUSTOMER RELATIONSHIPS

 

On August 11, 2015, the Company acquired Gourmet Foods, Ltd. The fair value on the acquired customer relationships was estimated to be $66,153 and is amortized over the remaining useful life of 10 years. On June 2, 2016, the Company acquired Brigadier. The fair value on the acquired customer relationships was estimated to be $434,099 and is amortized over the remaining useful life of 10 years. On December 18, 2017 the Company’s wholly owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired customer relationships was determined to be $200,000 and is amortized over the remaining useful life of 7 years. On July 1, 2020, our wholly owned subsidiary, Gourmet Foods, Ltd., acquired Printstock Products Limited. The fair value of the acquired customer relationships was estimated to be $77,123 and is amortized over a useful life of 9 years.

 

   September 30,   June 30, 
   2021   2021 
Customer relationships  $777,375   $777,375 
Less: accumulated amortization   (391,442)   (369,471)
Total customer relationships, net  $385,933   $407,904 

 

BRAND NAME

On August 11, 2015, the Company acquired Gourmet Foods, Ltd. The fair value on the acquired brand name was estimated to be $61,429 and is amortized over the remaining useful life of 10 years. On June 2, 2016, the Company acquired Brigadier. The fair value on the acquired brand name was estimated to be $340,694 and is amortized over the remaining useful life of 10 years. On December 18, 2017 the Company’s wholly owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired brand name was determined to be $740,000 and is considered to have an indefinite life. Unlike the brand names Gourmet Foods and Brigadier Security Systems, Original Sprout is an actual product name and recognized associated brand that is identifiable to consumers of the product and is the basis of the value proposition. That brand name will forever be associated with the product offering unless and until such time in the future as the Company may elect to discontinue the use of the brand and move towards establishment of an alternative product offering. On July 1, 2020, our wholly-owned subsidiary, Gourmet Foods, Ltd., acquired Printstock Products Limited. The fair value of the brand name was determined to be $57,842 and, like that of Original Sprout, would continue to stay in use for an indefinite period of time. Therefore, the Company will test for impairment of the brand names “Original Sprout” and “Printstock” at each reporting interval with no amortization recognized. 

   September 30,   June 30, 
   2021   2021 
Brand name  $1,199,965   $1,199,965 
Less: accumulated amortization   (219,755)   (209,620)
Total brand name, net  $980,210   $990,345 

 

DOMAIN NAME

 

On August 11, 2015, the Company acquired Gourmet Foods, Ltd. The fair value on the acquired domain name was estimated to be $21,601 and is amortized over the remaining useful life of 5 years. On June 2, 2016, the Company acquired Brigadier. The fair value on the acquired domain name was estimated to be $15,312 and is amortized over the remaining useful life of 5 years. As of September 30, 2021, the fair value of the acquired domain names had been fully amortized.

 

   September 30,   June 30, 
   2021   2021 
Domain name  $36,913   $36,913 
Less: accumulated amortization   (36,913)   (36,913)
Total brand name, net  $—   $— 

 

RECIPES AND FORMULAS

 

On August 11, 2015, the Company acquired Gourmet Foods, Ltd. The fair value on the recipes was estimated to be $21,601 and is amortized over the remaining useful life of 5 years. On December 18, 2017 the Company’s wholly owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired recipes and formulas was determined to be $1,200,000 and is amortized over the remaining useful life of 8 years.

 

   September 30,   June 30, 
   2021   2021 
Recipes and formulas  $1,221,601   $1,221,601 
Less: accumulated amortization   (589,545)   (551,737)
Total recipes and formulas, net  $632,056   $669,864 

 

NON-COMPETE AGREEMENT

 

On June 2, 2016, the Company acquired Brigadier. The fair value on the acquired non-compete agreement was estimated to be $84,982 and is amortized over the remaining useful life of 5 years. On December 18, 2017 the Company’s wholly owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired non-compete agreement was determined to be $190,000 and is amortized over the remaining useful life of 5 years.

 

   September 30,   June 30, 
   2021   2021 
Non-compete agreement  $274,982   $274,982 
Less: accumulated amortization   (231,677)   (219,282)
Total non-compete agreement, net  $43,305   $55,700 

INTERNALLY DEVELOPED SOFTWARE

 

During the quarter ended September 30, 2020, Marygold began incurring expenses in connection with the internal development of software applications that are planned for eventual integration to its consumer Fintech offering. Certain of these expenses, totaling $217,990 as of September 30, 2021, have been capitalized as intangible assets. Once development has been completed and the product is commercially viable, these capitalized costs will be amortized over their useful lives. As of September 30, 2021, no amortization expense has been recorded for these intangible assets.

 

AMORTIZATION EXPENSE

 

The total amortization expense for intangible assets for the three months ended September 30, 2021 and September 30, 2020 was $82,309 and $86,009, respectively.

 

Estimated remaining amortization expenses of intangible assets for the next five fiscal years, are as follows:

 

Years Ending June 30,  Expense 
2022  $235,885 
2023   292,261 
2024   277,378 
2025   262,114 
2026   150,345 
Thereafter   1,041,511 
Total  $2,259,494 

 

 

NOTE 6. INTANGIBLE ASSETS

 

Intangible assets consisted of the following as of June 30, 2021 and June 30, 2020:

 

   June 30, 2021   June 30, 2020 
Customer relationships  $777,375   $700,252 
Brand name   1,199,965    1,142,122 
Domain name   36,913    36,913 
Recipes   1,221,601    1,221,601 
Internally developed software   217,990    217,990 
Non-compete agreement   274,982    274,982 
Total   3,728,826    3,593,860 
Less : accumulated amortization   (1,387,023)   (1,052,575)
Net intangibles  $2,341,803   $2,541,285 

 

CUSTOMER RELATIONSHIP

 

On August 11, 2015, the Company acquired Gourmet Foods. The fair value on the acquired customer relationships was estimated to be $66,153 and is amortized over the remaining useful life of 10 years. On June 2, 2016, the Company acquired Brigadier Security Systems. The fair value on the acquired customer relationships was estimated to be $434,099 and is amortized over the remaining useful life of 10 years. On December 18, 2017 the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired customer relationships was determined to be $200,000 and is amortized over the remaining useful life of 7 years. On July 1, 2020, our wholly-owned subsidiary, Gourmet Foods, acquired Printstock Products Limited. The fair value of the acquired customer relationships was estimated to be $77,123 and is amortized over a useful life of 9 years.

 

   June 30, 2021   June 30, 2020 
Customer relationships  $777,375   $700,252 
Less: accumulated amortization   (369,471)   (282,304)
Total customer relationships, net  $407,904   $417,948 

 

BRAND NAME

 

On August 11, 2015, the Company acquired Gourmet Foods. The fair value on the acquired brand name was estimated to be $61,429 and is amortized over the remaining useful life of 10 years. On June 2, 2016, the Company acquired Brigadier Security Systems. The fair value on the acquired brand name was estimated to be $340,694 and is amortized over the remaining useful life of 10 years. On December 18, 2017 the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired brand name was determined to be $740,000 and is considered to have an indefinite life. Unlike the brand names Gourmet Foods and Brigadier Security Systems, Original Sprout is an actual product name and recognized associated brand that is identifiable to consumers of the product and is the basis of the value proposition. That brand name will continue to be associated with the product offering unless and until such time in the future as the Company may elect to discontinue the use of the brand and move towards establishment of an alternative product offering. On July 1, 2020, our wholly-owned subsidiary, Gourmet Foods, acquired Printstock Products Limited. The fair value of the brand name was determined to be $57,842 and, like that of Original Sprout, would continue to stay in use for an indefinite period of time. Therefore, the Company will test for impairment of the brand names “Original Sprout” and “Printstock” at each reporting interval with no amortization recognized. 

 

   June 30, 2021   June 30, 2020 
Brand name  $1,199,965   $1,142,122 
Less: accumulated amortization   (209,620)   (169,406)
Total brand name, net  $990,345   $972,716 

 

DOMAIN NAME

 

On August 11, 2015, the Company acquired Gourmet Foods, Ltd. The fair value on the acquired domain name was estimated to be $21,601 and is amortized over the remaining useful life of 5 years. On June 2, 2016, the Company acquired Brigadier Security Systems. The fair value on the acquired domain name was estimated to be $15,312 and is amortized over the remaining useful life of 5 years.

 

   June 30, 2021   June 30, 2020 
Domain name  $36,913   $36,913 
Less: accumulated amortization   (36,913)   (33,744)
Total brand name, net  $—   $3,169 

 

RECIPES AND FORMULAS

 

On August 11, 2015, the Company acquired Gourmet Foods. The fair value on the recipes was estimated to be $21,601 and is amortized over the remaining useful life of 5 years. On December 18, 2017 the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired recipes and formulas was determined to be $1,200,000 and is amortized over the remaining useful life of 8 years. 

 

   June 30, 2021   June 30, 2020 
Recipes and formulas  $1,221,601   $1,221,601 
Less: accumulated amortization   (551,737)   (401,366)
Total recipes and formulas, net  $669,864   $820,235 

NON-COMPETE AGREEMENT

 

On June 2, 2016, the Company acquired Brigadier Security Systems. The fair value on the acquired non-compete agreement was estimated to be $84,982 and is amortized over the remaining useful life of 5 years. On December 18, 2017 the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired non-compete agreement was determined to be $190,000 and is amortized over the remaining useful life of 5 years.

 

   June 30, 2021   June 30, 2020 
Non-compete agreement  $274,982   $274,982 
Less: accumulated amortization   (219,282)   (165,755)
Total non-compete agreement, net  $55,700   $109,227 

 

INTERNALLY DEVELOPED SOFTWARE

 

During the first quarter of 2020, Marygold began incurring expenses in connection with the internal development of software applications that are planned for eventual integration to its consumer Fintech offering. Certain of these expenses, totaling $217,990 as of June 30, 2021 and June 30, 2020, have been capitalized as intangible assets. Once development has been completed and the product is commercially viable, these capitalized costs will be amortized over their useful lives. As of June 30, 2021, no amortization expense has been recorded for these intangible assets.

AMORTIZATION EXPENSE

 

The total amortization expense for intangible assets for the years ended June 30, 2021 and June 30, 2020 was $334,448 and $336,428, respectively.

 

Estimated amortization expenses of intangible assets for the next five years ending June 30, are as follows:

 

Years Ending June 30,  Expense 
2022  $315,378 
2023   295,077 
2024   277,378 
2025   262,114 
2026   150,345 
Thereafter   1,041,511 
Total  $2,341,803