Goodwill and Intangible Assets

12 Months Ended

Jul. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 12 – Goodwill and Intangible Assets 

Intangible assets consist of the following at:

		July 31,			July 31,
	Estimated Useful Lives	2020			2019
In-Process Research & Development		$	6,302,427		$	8,761,427
Non-compete agreements	3 years		1,210,000			1,210,000
Developed software/technology	5 years		131,000			131,000
Intellectual Property	5 years		2,459,000			—
Patents	20 years		51,274			51,274
			10,153,701			10,153,701
Less accumulated amortization			(788,175	)		(319,432	)
		$	9,365,526		$	9,834,269

Intangible assets are 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 July 31, 2020, the in-process research and development (“IPR&D”) of $6,302,427 in the aggregate was a combination of $2,911,377 obtained through the acquisition of HDS and $3,391,050 obtained through the acquisition of Regentys. None of the research and development of the underlying IPR&D have 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 was critical to the Company’s ability to determine that IPR&D associated with Olaregen, valued at $2,459,000, no longer has an indefinite life subject to amortization. The Company determined Olaregen’s IPR&D life to be 5 years as of July 31, 2020.

Amortization expense amounted to $653,390 and $255,835 for the years ended July 31, 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
2021	$	923,897
2022		654,189
2023		520,564
2024		500,914
2025		458,202
Thereafter		5,334
Total	$	3,063,099

Changes in the value of goodwill:

Balance as of July 31, 2018	$	—
Acquisition of Veneto (revaluation)		15,051,768
Acquisition of Regentys (revaluation)		13,834,581
Acquisition of Olaregen (revaluation)		9,411,224
Balance as of July 31, 2019	$	38,297,573
Acquisition of MediSource and Pantheon		603,553
Impairment of Veneto		(3,808,231	)
Impairment of MediSource and Pantheon		(603,553	)
Balance as of July 31, 2020	$	34,489,342

See Note 2 – Goodwill, Impairment or Disposal of Long-Lived Assets and Intangibles for a detailed breakout of impairment of goodwill and intangibles.