Note 4 - Intangible Assets and Goodwill

9 Months Ended

12 Months Ended

Dec. 31, 2022

Mar. 31, 2022

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE 5: INTANGIBLE ASSETS AND GOODWILL

Intangible assets consisted of the following as of December 31, 2022 and March 31, 2022:

	December 31,			March 31,
	2022			2022
	(unaudited)
Customer relationships	$	2,100,000		$	2,100,000
Non-compete agreements		250,000			250,000
Total intangible assets		2,350,000			2,350,000
Accumulated amortization and impairment		(826,399	)		(633,669	)
Intangible assets, net	$	1,523,601		$	1,716,331

In the acquisition of Banner Midstream by Ecoark Holdings, the intangible assets acquired consisted of customer relationships and non-compete agreements valued at $2,350,000. The estimated useful lives of the customer relationships are ten years based on the estimated cash flows from those customer contracts, and the estimated useful lives of the non-compete agreement is five years amortized over a straight-line method. These assets continue to be amortized as there have been no changes or evidence of impairment.

In addition to the statutory based intangible assets noted above, the Company recorded a total of $4,900,873 of goodwill in connection with the acquisition of Banner Midstream by Ecoark Holdings.

The Company assessed the criteria for impairment, and there were no indicators of impairment present as of December 31, 2022 and therefore no impairment is necessary.

	Nine Months Ended December 31,
	2022		2021
	(unaudited)		(unaudited)
Amortization expense	$	192,729	$	261,611

	Three Months Ended December 31,
	2022		2021
	(unaudited)		(unaudited)
Amortization expense	$	64,243	$	87,203

The following is the future amortization of the intangibles as of December 31:

2023	$	263,363
2024		262,549
2025		230,252
2026		205,144
2027		202,825
Thereafter		359,468
	$	1,523,601

Banner Midstream Corp. [Member]

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE 4: INTANGIBLE ASSETS AND GOODWILL

Intangible assets consisted of the following as of March 31, 2022 and 2021:  

	March 31, 2022			March 31, 2021
Customer relationships	$	2,100,000		$	2,100,000
Non-compete agreements		250,000			250,000
Total intangible assets		2,350,000			2,350,000
Accumulated amortization and impairment		(633,669	)		(284,855	)
Intangible assets, net	$	1,716,331		$	2,065,145

In the acquisition of Banner Midstream, by Ecoark Holdings, the intangible assets acquired consisted of the customer relationships and non-compete agreements valued at $2,350,000. The estimated useful lives of the customer relationships are ten years based on the estimated cash flows from those customer contracts, and the estimated useful lives of the non-compete agreement is five years amortized over a straight-line method.

Amortization expense for the years ended March 31, 2022 and 2021 was $348,814 and $284,855, respectively.

The following is the future amortization of the intangibles as of March 31:

2023	$	256,973
2024		265,493
2025		261,568
2026		219,813
2027		200,255
Thereafter		512,229
	$	1,716,331

In addition to the statutory based intangible assets noted above, Ecoark Holdings recorded a total of $4,900,873 of goodwill in connection with the purchase of Banner Midstream.

The Company assessed the criteria for impairment, and there were no indicators of impairment present as of March 31, 2022, and therefore no impairment is necessary.