INTANGIBLE ASSETS

12 Months Ended

Sep. 30, 2022

INTANGIBLE ASSETS

INTANGIBLE ASSETS

NOTE E – INTANGIBLE ASSETS

Intangible assets at September 30, 2021 are as follows:

	2021
Customer relationships (10‑year useful life)	$	621,000
Intellectual property (5‑15 years)		917,350
		1,538,350
Less:
Accumulated amortization		1,001,995
Impairment losses		536,355
Intangible assets, net	$	—

Total amortization expense charged to operations for the fiscal year ended September 30, 2022 and 2021 were $0 and $68,976, respectively.

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.