INTANGIBLE ASSETS

6 Months Ended

Dec. 31, 2021

INTANGIBLE ASSETS

INTANGIBLE ASSETS

NOTE 3 – INTANGIBLE ASSETS

Intangible assets consisted of the following as of December 31, 2021 and June 30, 2021: 

	December 31, 2021			June 30, 2021
Customer relationship	$	4,960,000		$	4,960,000
Non-core customer relationships		760,000			760,000
Non-compete agreements		1,430,000			1,430,000
Technology		520,000			520,000
Tradename		470,000			470,000
Workforce acquired		2,125,000			2,125,000
		10,265,000			10,265,000
Less: accumulated amortization		(8,006,000	)		(7,662,000	)
Net book value	$	2,259,000		$	2,603,000

Purchased intangible assets with finite useful lives are amortized over their respective estimated useful lives (using an accelerated method for customer relationships and trade names) to their estimated residual values, if any. The Company’s finite-lived intangible assets consist of customer relationships, contractor and resume databases, trade names, and internal use software and are being amortized over periods ranging from two to nine years. Purchased intangible assets are reviewed annually to determine if facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, recoverability is assessed by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, the rate of amortization is accelerated and the remaining carrying value is amortized over the new shorter useful life. For the three and six months December 31, 2021, the Company had no impairments. For the three and six months December 31, 2020, the Company had no impairments. During the fiscal year ending June 30, 2021, the Company recorded $0 in impairment expense related to intangibles.

During the three months ended December 31, 2021 and 2020, amortization expense was $171,000 and $539,000, respectively. During the six months ended December 31, 2021 and 2020, amortization expense was $343,000 and $1,079,000, respectively.