XML 18 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
Contingent Earnout Liability
9 Months Ended
Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Contingent Earnout Liability

NOTE 2 –CONTINGENT EARNOUT LIABILITY

 

In 2014, the Company acquired Tangible Payments LLC, which developed online payment technology that encrypts sensitive information securely between customers and merchants during online transactions.

 

The purchase price for the acquisition was $192,500 and included an earnout payment of $155,000. The earnout payment is payable on a monthly basis from the net profits derived from the acquired assets commencing three months after the closing. From the date of the acquisition and up to March 31, 2018, there was no net profit derived from the acquired assets and accordingly, no payments were made on the earnout.

 

The Company assigned $192,500 of the purchase price to contract commitments which were amortized over a three year period. For the three and nine months ended March 31, 2018 and 2017, the Company recorded $0 and $16,042, and $27,153 and $59,236, respectively, of amortization expense related to this intangible asset which is included in general and administrative expense in the Condensed Consolidated Statements of Operations.