Goodwill and Intangible Assets

9 Months Ended

Apr. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 7 – Goodwill and Intangible Assets 

Intangible assets consist of the following at:

	Estimated	April 30,			July 31,
	Useful Lives	2020			2019
In-Process Research & Development		$	8,761,427		$	8,761,427
Non-compete agreements	3 years		1,566,700			1,210,000
Developed software/technology	5 years		172,500			131,000
Vendor agreements and other intangibles			775,674			51,274
			11,276,301			10,153,701
Less accumulated amortization			(781,727	)		(319,432	)
		$	10,494,574		$	9,834,269

Intangible assets are generally amortized on a straight-line basis over the useful lives of the assets. The Company is currently not amortizing the in-process research and development until it becomes commercially viable and placed in service. At the time when the intangible assets are placed in service the Company will determine a useful life. As of April 30, 2020, the in-process research and development (“IPR&D”) of $8,761,427 in the aggregate was a combination of $2,911,377 obtained through the acquisition of HDS; $3,391,050 obtained through the acquisition of Regentys; and $2,459,000 through the acquisition of Olaregen. None of the research and development underlying the IPR&D has been not been abandoned, nor was it determined to be impaired by management as a result of COVID-19. The Company was recently awarded a Blanket Purchase Agreement (BPA) contract from the National Strategic Acquisition Center (SAC). The VA’s National Contract and National BPA programs are used by VA medical centers, related facilities, specific State Veterans Homes, and other Federal facilities to procure select products based on clinical evidence, patient outcomes, and economic cost to the VA hospitals. The SAC awarded Olaregen’s Excellagen will expedite the purchasing of Excellagen at over 165 VA medical centers across the U.S. and Puerto Rico. This approval process is critical to the Company’s ability to determine whether IPR&D associated with Olaregen no longer has an indefinite life subject to amortization, except until the VA resumes its surgical procedures, the Company determined Olaregen’s IPR&D life to remain indefinite as of April 30, 2020.

Amortization expense amounted to $462,295 and $399,541 for the nine months ended April 30, 2020 and 2019, respectively.

The estimated amortization expense remainder of the current fiscal year and for the next five years and thereafter is as follows:

Year Ending July 31,	Amount
For the period May 1, 2020 to July 31, 2020	$	154,565
2021		616,744
2022		347,399
2023		94,510
2024		75,018
Thereafter		444,911
Total	$	1,733,147

Changes in the value of goodwill:

Balance as of July 31, 2019	$	38,297,573
Acquisition of MediSource and Pantheon		603,553
Balance as of April 30, 2020	$	38,901,126