Note 6 - Intangible Assets

12 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE

6.

          

INTANGIBLE

ASSETS

Intangible assets consisted of the following:

	June 30,			June 30,
	2017			2016
Brand name	$	402,123		$	402,123
Domain name		36,913			36,913
Customer relationships		500,252			500,252
Non-compete agreement		84,982			84,982
Recipes		21,601			21,601
Total		1,045,871			1,045,871
Less : accumulated amortization		(146,595	)		(27,658	)
Net intangibles	$	899,276		$	1,018,213

CUSTOMER RELATIONSHIP

On

August 11,

20

15,

the Company acquired Gourmet Foods, Ltd. The fair value on the acquired customer relationships was estimated to be

$66,153

and is amortized over the remaining useful life of

10

years. On

June 2, 2016,

the Company

acquired Brigadier Security Systems. The fair value on the acquired customer relationships was estimated to be

$434,099

and is amortized over the remaining useful life of

10

years.

	June 30,			June 30,
	2017			2016
Customer relationships	$	500,252			500,252
Less: accumulated amortization		(59,684	)		(9,659	)
Total customer relationships, net	$	440,568			490,593

 

BRAND NAME

On

August 11,

20

15,

the Company acquired Gourmet Foods, Ltd. The fair value on the acquired brand name was estimated to be

$61,429

and is amortized over the remaining useful life of

10

years. On

June 2, 

2016,

 the Company acquired Brigadier Security Systems. The fair value on the acquired brand name was estimated to be

$340,694

and is amortized over the remaining useful life of

10

years.

	June 30,			June 30,
	2017			2016
Brand name	$	402,123		$	402,123
Less: accumulated amortization		(48,660	)		(8,448	)
Total brand name, net	$	353,463		$	393,675

DOMAIN NAME

On

August 11,

20

15,

the Company acquired Gourmet Foods, Ltd. The fair value on the acquired domain name was estimated to be

$21,601

and is amortized over the remaining useful life of

5

years. On

June 2, 2016,

the Company acquired Brigadier Security Systems. The fair value on the acquired domain name was estimated to be

$15,312

and is amortized over the remaining useful life of

5

years.

	June 30,			June 30,
	2017			2016
Domain name	$	36,913		$	36,913
Less: accumulated amortization		(11,576	)		(4,193	)
Total brand name, net	$	25,337		$	32,720

RECIPES

On

August 11,

20

15,

the Company acquired Gourmet Foods, Ltd. The fair value on the recipes was estimated to be

$21,601

and is amortized over the remaining useful life of

5

years. 

	June 30,			June 30,
	2017			2016
Recipes	$	21,601		$	21,601
Less: accumulated amortization		(8,257	)		(3,937	)
Total recipes, net	$	13,344		$	17,664

NON-COMPETE AGREEMENT

On

June 2, 2016,

the Company acquired Brigadier Security Systems. The fair value on the acquired non-compete agreement was estimated to be $

84,982

and is amortized over the remaining useful life of

5

years.

	June 30,			June 30,
	2017			2016
Non-compete agreement	$	84,982		$	84,982
Less: accumulated amortization		(18,418	)		(1,421	)
Total non-compete agreement, net	$	66,564		$	83,561

AMORTIZATION EXPENSE

The total amortization expense for intangible assets for the years ended

June 30, 2017

and

June 30, 2016

was

$118,937

and

$27,658,

respectively.

Estimated amortization expenses of intangible assets for the next

five twelve

-month periods ended

June 30,

are as follows:

Years Ending June 30,	Expense
2018	$	118,937
2019		118,937
2020		118,937
2021		109,385
2022		90,237
Thereafter		342,843
Total	$	899,276