Note 5 - Intangible Assets

12 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE 5 – INTANGIBLE ASSETS

Amortization expense for the years ended September 30, 2025 and 2024 was $765,078 and $697,510, respectively and was recorded on the consolidated statements of operations.

At September 30, 2025 and 2024, the Company prepared a tradename impairment analysis in accordance with ASC 360 and has determined that no impairment existed.

In 2019, Company’s subsidiary, CBD Industries, LLC, initiated a trademark cancellation proceeding against Majik Medicine, LLC (“Majik”) regarding Majik’s “CBD MD” trademark. In a Settlement, Purchase, and Release Agreement that occurred in August of 2024, the Company acquired the trademark, resolving all related legal claims. The agreement included a $100,000 initial payment, four additional annual payments of $50,000, the issuance of 9,375 shares of common stock, and 6,250 additional shares on the one-year anniversary. Failure to make the additional payments would reassign the trademark to Majik. Additionally, the Company entered a five-year consulting agreement with Majik, granting a 15% commission on increased sales from licensed practitioners, a new customer base. This acquisition strengthens the Company’s IP portfolio, avoids litigation costs, and expedites trademark issuance. The Company issued the 6,250 additional shares of common stock in the fourth quarter of fiscal 2025 pursuant to the settlement agreement with Majik Medicine. 

Intangible assets as of September 30, 2025 and 2024 consisted of the following:

	September 30,			September 30,
	2025			2024
Trademark related to cbdMD	$	21,585,000		$	21,585,000
Trademark for HempMD		50,000			50,000
Technology Relief from Royalty related to DirectCBDOnline.com		667,844			667,844
Tradename related to CBD MD limited mark		368,000			368,000
Tradename related to DirectCBDOnline.com		749,567			749,567
Impairment of definite lived intangible assets:		(17,504,000	)		(17,504,000	)
Amortization of definite lived intangible assets:		(3,791,909	)		(3,026,831	)
Total	$	2,124,502		$	2,889,580

Future amortization of intangible assets as of September 30, 2025 is as follow:

For the year ended September 30,
2026		733,740
2027		733,740
2028		569,923
2029		87,099
Total future intangibles amortization	$	2,124,502