Goodwill and Intangible Assets

3 Months Ended

Oct. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 6 – Goodwill and Intangible Assets 

The goodwill was recognized as a result of the acquisitions of Veneto, Regentys and Olaregen in fiscal year 2019. Goodwill was $34,489,342 as of October 31, 2020 and July 31, 2020.

Intangible assets consist of the following at:

	Estimated	October 31,			July 31,
	Useful Lives	2020			2020
In-Process Research & Development		$	6,302,427		$	6,302,427
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			2,459,000
Patents	20 years		51,274			51,274
			10,153,701			10,153,701
Less accumulated amortization			(1,019,517	)		(788,175	)
		$	9,134,184		$	9,365,526

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 October 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. On March 20, 2020, 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 useful life to be 5 years.

Amortization expense amounted to $231,342 and $154,426 for the three months ended October 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
For the nine months ended July 31, 2021	$	692,555
2022		654,190
2023		520,564
2024		500,914
2025		458,202
Thereafter		5,332
Total	$	2,831,757