Asset Purchase

6 Months Ended

Dec. 31, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Asset Purchase

Note 16: Asset Purchase

On December 17th, 2024, the Company completed an asset purchase from Bensussen Deutsch & Associates, LLC, “an unrelated third party” for a total cash consideration to the seller of $7,551 million. The asset purchase included inventory, tooling equipment, and a trademark.

The allocation of the purchase price was as follows:

($ in thousands)

Inventory	$	765
Property and Equipment, tooling		124
Prepaid Assets		2
Accrued Liability		(25	)
Total Identifiable net assets (liabilities)		866
Intangible assets (Trademark) (including capitalized costs)		6,752
Total Purchase Price (allocated)	$	7,618
Total Cash Consideration Paid to Seller	$	7,551
Capitalized Acquisition Costs (Legal and Shipping fees)		67

The acquired intangible asset represents a trademark associated with the Company’s recently acquired product line, Handmade by Robots. The trademark is determined to have an indefinite useful life and will not be amortized. Instead, it will be tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset may be impaired, in accordance with ASC 350 (Intangibles – Goodwill and Other).

Inventory was recorded at its estimated fair value on the acquisition date and is expected to be sold within 18 months. Acquisition-related costs of $67 thousand, consisting of capitalized legal and shipping fees, included in the value of the intangible asset in accordance with ASC 805 -50-30-1. As a result, the total allocated purchase price, including capitalized costs, is $7,618 thousand.