IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS

3 Months Ended

Sep. 30, 2024

Impairment Of Goodwill And Long-lived Assets

IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS

NOTE 5. IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS

PulpoAR, LLC (“Pulpo”)

During the three months ended September 30, 2023 a decision was made by the Company to divest the operations of its wholly owned subsidiary Pulpo due to poor revenue performance and non-strategic alignment. Accordingly, the fair value of intangible assets, including goodwill, originally recorded at the time of the purchase, were determined to be to be zero. The net assets of $0.89 million (consisting of intangible assets - technology with net book value of $0.51 million and goodwill of $0.38 million) were written-off and were included in goodwill impairment and intangible asset impairment on the condensed consolidated statement of operations for the three months year ended September 30, 2023.

For the three months ended September 30, 2023, Pulpo had revenue of $0.07 million and net loss of $0.25 million (exclusive of the goodwill and intangible asset impairment write-off), reported in the condensed consolidated statements of operations.

The divestiture did not have a material impact on the Company’s operations or financial results.