Intangible Assets, Net and Goodwill

12 Months Ended

Jun. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net and Goodwill [Text Block]

Note 4. Intangible Assets, Net and Goodwill

Intangible Assets

Identifiable intangible assets, net consisted of the following as of and for the years ended June 30, 2025 and 2024:

		Trade name - indefinite life			Non-compete covenant			Customer relationships			Total
Gross carrying amount
June 30, 2024	$	1,084,000		$	438,000		$	6,183,000		$	7,705,000
Additions		-			-			-			-
Disposals		-			-			-			-
Impairment		(526,000	)		(363,300	)		(2,301,300	)		(3,190,600	)
June 30, 2025	$	558,000		$	74,700		$	3,881,700		$	4,514,400
Accumulated Amortization
June 30, 2024	$	-		$	438,000		$	4,267,025		$	4,705,025
Additions		-			-			618,300			618,300
Disposals		-			-			-			-
Impairment		-			(363,300	)		(1,877,007	)		(2,240,307	)
June 30, 2025		-			74,700			3,008,318			3,083,018
Net book value at June 30, 2025	$	558,000		$	-		$	873,382		$	1,431,382

		Trade name - indefinite life		Non-compete covenant		Customer relationships		Total
Gross carrying amount
June 30, 2023	$	1,084,000	$	438,000	$	6,183,000	$	7,705,000
Additions		-		-		-		-
Disposals		-		-		-		-
June 30, 2024	$	1,084,000	$	438,000	$	6,183,000	$	7,705,000
Accumulated Amortization
June 30, 2023	$	-	$	438,000	$	3,648,725	$	4,086,725
Additions		-		-		618,300		618,300
Disposals		-		-		-		-
June 30, 2024		-		438,000		4,267,025		4,705,025
Net book value at June 30, 2024	$	1,084,000	$	-	$	1,915,975	$	2,999,975

During the year ended June 30, 2025, the Company recorded impairment charges of $950,293 related to certain intangible assets, primarily to customer relationships, non-compete covenant, and trade name as the carrying amounts of these assets exceeded their estimated fair values based on discounted cash flow analyses.  No intangible asset impairment was recorded for the year ended June 30, 2024.

Amortization expense associated with the intangible assets, net was $618,300 for both fiscal years ended June 30, 2025 and 2024. Estimated future amortization expense for the identifiable intangible assets, net is expected to be as follows for the years ending June 30:

2026	$	388,170
2027		388,170
2028		97,042
Total	$	873,382

Goodwill

The following table presents the changes in goodwill for the years ended June 30, 2025 and 2024:

		Total
Net balance at July 1, 2024	$	7,116,614
Goodwill impairment		(7,116,614	)
Net balance at June 30, 2025	$	-

During the annual goodwill impairment assessment performed as of June 30, 2025, the Company determined that the carrying amount of the reporting units exceeded its estimated fair value. As a result, the Company recognized a goodwill impairment charge of $7,116,614 for the year ended June 30, 2025. No goodwill impairment was recorded for the year ended June 30, 2024.