INTANGIBLE ASSETS

12 Months Ended

Sep. 30, 2021

INTANGIBLE ASSETS

INTANGIBLE ASSETS

NOTE E – INTANGIBLE ASSETS

Intangible assets at September 30, 2021 and 2020 are as follows:

	2021		2020
Internally developed software (5‑year useful life)	$	—	$	157,221
Customer relationships (10‑year useful life)		621,000		621,000
Intellectual property (5‑15 years)		917,350		917,350
		1,538,350		1,695,571
Less:
Accumulated amortization		1,001,995		933,020
Impairment losses		536,355		157,221
Intangible assets, net	$	—	$	605,330

Total amortization expense charged to operations for the fiscal years ended September 30, 2021 and 2020 were $68,976 and $129,441, respectively.

NOTE E – INTANGIBLE ASSETS, continued

During the fourth quarter of 2021, the Company performed an impairment assessment of its customer relationships and intellectual property as a result of the Company no longer using the acquired technology, as well as a reduction in demand and future demand from certain customers impacting projected net sales and cash flows. The Company is now using a different technology to produce these products.   The intellectual property and customer lists were purchased as part of the Vandalia Asset Acquisition and related to the right to produce, sell and have sold, market and develop the Triathlon DNA production system, The qualitative impairment assessment concluded that the asset group was not recoverable and resulted in the full impairment of the remaining book value of these intangible assets of $536,355.  See Note C above for further details.