Note 6 - Intangible Assets

6 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE 6. INTANGIBLE ASSETS

Intangible assets consisted of the following

as of:

	December 3 1 ,			June 30,
	2017			201 7
Brand name	$	402,123		$	402,123
Domain name		36,913			36,913
Customer relationships		500,252			500,252
Non-compete agreement		84,982			84,982
Recipes		21,601			21,601
Total		1,045,871			1,045,871
Less : accumulated amortization		(206,552	)		(146,595	)
Net intangibles	$	839,319		$	899,276

CUSTOMER RELATIONSHIP

S

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.

	December 3 1 ,			June 30,
	2017			201 7
Customer relationships	$	500,252			500,252
Less: accumulated amortization		(84,902	)		(59,684	)
Total customer relationships, net	$	415,350			440,568

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.

	December 3 1 ,			June 30,
	2017			201 7
Brand name	$	402,123		$	402,123
Less: accumulated amortization		(68,931	)		(48,660	)
Total brand name, net	$	333,192		$	353,463

DOMAIN NAME

On

August 11, 2015,

the Company acquired Gourmet Foods. 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.

	December 3 1 ,			June 30,
	2017			201 7
Domain name	$	36,913		$	36,913
Less: accumulated amortization		(15,297	)		(11,576	)
Total brand name, net	$	21,616		$	25,337

RECIPES

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.

	December 3 1 ,			June 30,
	2017			201 7
Recipes	$	21,601		$	21,601
Less: accumulated amortization		(10,435	)		(8,257	)
Total recipes, net	$	11,166		$	13,344

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.

	December 3 1 ,			June 30,
	2017			2017
Non-compete agreement	$	84,982		$	84,982
Less: accumulated amortization		(26,986	)		(18,418	)
Total non-compete agreement, net	$	57,996		$	66,564

AMORTIZATION EXPENSE

The total intangible amortization expense for the

three

and

six

months ended

December 31, 2017 was

 

$29,979

and

$59,957,

respectively, as compared to

$29,979

and

$59,957,

respectively, for the

three

and

six

months ended December

31,

2016.

Estimated amortization expenses of intangible assets for the next

five

fiscal years

,

are as follows:

Years Ending June 30 ,	Expense
2018	$	59,468
2019		118,937
2020		118,937
2021		108,648
2022		90,237
Thereafter		343,092
Total	$	839,319