Intangible Assets

9 Months Ended

Mar. 31, 2023

Intangible Assets

Intangible Assets

Note 5. Intangible Assets

Intangible assets as of March 31, 2023:

	Estimated Life	Cost		Accumulated Amortization		Net Book Value
Customer relationships	4 years	$	10,396,000	$	1,797,188	$	8,598,812
Trade name	5 years		2,219,000		339,584		1,879,416
Non-compete agreements	Term of agreement		275,000		253,395		21,605
Online sales channels	2 years		1,800,000		900,000		900,000
Vender relationships	5 years		6,000,000		1,200,000		4,800,000
Software	5 years		1,590,000		477,000		1,113,000
		$	22,280,000	$	4,967,167	$	17,312,833

For the three months ended March 31, 2023 and 2022, the Company amortized approximately $1,691,243 and $417,549, respectively.

For the nine months ended March 31, 2023 and 2022, the Company amortized approximately $3,534,216 and $1,085,481, respectively.

The following intangible assets were added during the nine months ended March 31, 2023 from the acquisition of LuckyTail:

Customer relationships	$	2,304,000
Trade name		360,000
Intangible Assets from Purchase	$	2,664,000

E-Core:

Customer relationships	$	6,000,000
Trade name		1,250,000
Intangible Assets from Purchase	$	7,250,000

Intangible assets as of June 30, 2022:

	Cost		Accumulated Amortization		Net Book Value
Customer relationships, amortized over four years	$	2,092,000	$	689,292	$	1,402,708
Trade name, amortized over five years		609,000		156,783		452,217
Non-compete agreements, amortized over the term of the agreement		275,000		115,042		159,958
Online sales channels, amortized over two years		1,800,000		225,000		1,575,000
Vender relationships, amortized over five years		6,000,000		300,000		5,700,000
Software, amortized over five years		1,590,000		238,500		1,351,500
	$	12,366,000	$	1,724,617	$	10,641,383

The following intangible assets were added during the year ended June 30, 2022, from the acquisition of VitaMedica, Interactive and Cygnet.

Customer relationships	$	2,092,000
Trade name		609,000
Non-compete agreements		275,000
Online sales channels		1,800,000
Vender relationships		6,000,000
Software		1,590,000
Intangible Assets from Purchase	$	12,366,000

Future amortization of intangible assets at March 31, 2023 are as follows:

June 30, 2023	$	1,381,700
June 30, 2024		5,240,905
June 30, 2025		4,560,800
June 30, 2026		4,560,800
June 30, 2027		1,568,628
Thereafter		-
	$	17,312,833