INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Jul. 31, 2020

Intangible assets, net consisted of the following:


	As of July 31,
	2020		2019
Customer relationship (a)	$	6,700,000	$	—
Tradename (a)		1,300,000		—
Financial and news platform (b)		443,043		438,657
Software		339,569		19,842
Total		8,782,612		458,499
Less: accumulated amortization		(471,078)		(29,740)
Impairment of intangible assets		(386,432)		—
Intangible assets, net	$	7,925,102	$	428,759

(a)

In connection with the acquisition of 51.2% equity interest of LGC, the Company acquired an aggregate of $8,000,000 of intangible assets, primarily consisted of customer relationships and tradenames, which have an estimated weighted-average amortization period of approximately 6.2 years and 9.6 years, respectively.

(b)

In order to diversify the Company’s business and revenue source, on September 20, 2018 (the “Acquisition Date”), ATIF HK entered into a purchase agreement with Shenzhen Shangyuan Electronic Commerce Co., Ltd. (“Shangyuan”) to acquire a financial and news media platform, www.chinacnnm.com, from Shangyuan, for a total cash consideration of approximately $0.46 million (or RMB3 million).The purchase price was based on the estimated fair value of this asset as of the Acquisition Date in accordance with the valuation report of an independent appraisal firm. The transaction costs (including title search and legal costs) associated with the news media platform acquisition were immaterial and transaction cost capitalization is not deemed necessary. The Company acquired only the financial and news platform/website from Shangyuan, rather than the equity interest of Shangyuan. Thus, the Company determined that the acquisition constituted as an acquisition of assets for financial statement purposes.

Summary of estimated future amortization expense

Estimated future amortization expense for intangible assets is as follows:


Year ending July 31,	Amortization expense
2021	$	1,298,019
2022		1,298,019
2023		1,298,019
2024		1,291,352
2025		1,218,019
Thereafter		1,521,674
Total	$	7,925,102