Note 8 - Intangible Asset, Net

9 Months Ended

May 31, 2022

Customer Relationships and Assembled Workforce [Member]

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

8.         INTANGIBLE ASSET, NET

Intangible asset, net consisted of the following as of May 31, 2022:

	May 31, 2022			August 31, 2021
Customer relationships	$	6,347,000		$	—
Less accumulated amortization		(317,350	)		—
Net Carrying Amount	$	6,029,650		$	—

The customer relationships were established as a part of purchase accounting related to our Zerust India acquisition. See Note 3 entitled “Business Combination.” The Company amortizes the intangible asset related to the customer relationships using the straight-line method over the estimated useful lives of the asset, which is 15 years. Total amortization expense was $105,783 and $317,350 for the three and nine months ended May 31, 2022, respectively. Amortization expense is estimated to be $423,000 in each of the next five fiscal years.