GOODWILL AND

INTANGIBLE ASSETS

Goodwill is attributable to the acquisition of Genasys Spain and is due to combining the mass messaging solutions and software development capabilities with existing Company products for enhanced offerings and the skill level of the workforce. The Company periodically reviews goodwill for impairment in accordance with relevant accounting standards. There were

additions or impairments to goodwill during the year ended

September 30, 2019.

September 30, 2019

and

September 30, 2018,

goodwill was

$2,305,750

and

$2,445,990,

respectively.

During the year ended

September 30, 2018,

the Company determined that certain patents were impaired. These patents supported products that are

longer sold by the Company. The Company recorded a non-cash loss on the impairment of these patents of

$11,133

for the year ended

September 30, 2018.

There was

impairment loss for the year ended

September 30, 2019.

Intangible assets and goodwill related to Genasys Spain are translated from Euros to U.S. dollars at the balance sheet date. The net impact of foreign currency exchange differences arising during year ended

September 30, 2019,

related to goodwill and intangible assets was a reduction of

$219,325.

The Company’s intangible assets consisted of the following:

	September 30,
	2019			2018
Technology	$	611,043		$	648,208
Customer relationships		584,477			620,026
Trade name portfolio		212,537			225,464
Non-compete agreements		230,248			244,252
Patents		72,126			72,126
		1,710,431			1,810,076
Accumulated amortization		(534,797	)		(252,730	)
	$	1,175,634		$	1,557,346

	Year Ended September 30,
	2019		2018
Amortization Expense	$	303,397	$	231,901

Estimated amortization expense for the

twelve

months ending

September 30,

2020	$	294,242
2021		239,586
2022		217,073
2023		186,683
2024		173,734
Thereafter		64,316
Total estimated amortization expense	$	1,175,634