Goodwill and Finite Lived Intangible Asset

3 Months Ended

6 Months Ended

Mar. 31, 2023

Dec. 31, 2022

Goodwill and Finite Lived Intangible Asset

Goodwill and Finite Lived Intangible Asset

5. Goodwill and Finite Lived Intangible Assets

Goodwill amounted to $115,300 as of March 31, 2023 and December 31, 2022, all of which is expected to be deductible for tax purposes.

Finite lived intangible assets consist of the following:

As of March 31, 2023:	Useful Lives	Cost		Accumulated Amortization		Net
Technology, trademarks	3-10 yrs.	$	1,216,800	$	759,000	$	457,800
Trade names	3-6 yrs.		592,300		284,900		307,400
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		172,900		199,300
Sublicense agreements	10 yrs.		294,000		294,000		-
Non-compete agreements	4-5 yrs.		1,060,500		650,900		409,600
Patents	5-7 yrs.		595,800		336,900		258,900
		$	4,341,600	$	2,708,600	$	1,633,000

				Accumulated
As of December 31, 2022	Useful Lives	Cost		Amortization		Net
Technology, trademarks	3-10 yrs.	$	1,216,800	$	721,700	$	495,100
Trade names	3-6 yrs.		592,300		266,000		326,300
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		163,800		208,400
Sublicense agreements	10 yrs.		294,000		294,000		-
Non-compete agreements	4-5 yrs.		1,060,500		602,000		458,500
Patents	5-7 yrs.		595,800		321,100		274,700
		$	4,341,600	$	2,578,600	$	1,763,000

Total amortization expense was $130,000 and $134,600 for the three months ended March 31, 2023 and 2022, respectively.

Estimated future fiscal year amortization expense of intangible assets as of March 31, 2023 is as follows:

As of March 31, 2023	Amount
Remainder of fiscal year ending 2023	$	386,600
2024		506,100
2025		371,500
2026		193,800
2027		92,600
Thereafter		82,400
Total	$	1,633,000

6. Goodwill and Finite Lived Intangible Asset

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in connection with the Company’s acquisitions. Goodwill amounted to $115,300 as of December 31, 2022, and as of June 30, 2022, respectively and $4,395,400 as of June 30, 2021, all of which is expected to be deductible for tax purposes.

The components of finite lived intangible assets are as follows:

	Useful Lives	Cost		Accumulated Amortization		Net
As of December 31, 2022
Technology, trademarks	3-10 yrs.	$	1,216,800	$	721,700	$	495,100
Trade names	3-6 yrs.		592,300		266,000		326,300
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		163,800		208,400
Sublicense agreements	10 yrs.		294,000		294,000		-
Non-compete agreements	4-5 yrs.		1,060,500		602,000		458,500
Patents	5-7 yrs.		595,800		321,100		274,700
		$	4,341,600	$	2,578,600	$	1,763,000

	Useful Lives	Cost		Accumulated Amortization		Net
As of June 30, 2022
Technology, trademarks	3-10 yrs.	$	1,278,900	$	653,400	$	625,500
Trade names	3-6 yrs.		592,300		228,200		364,100
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		143,300		228,900
Sublicense agreements	10 yrs.		294,000		294,000		-
Non-compete agreements	4-5 yrs.		1,060,500		504,200		556,300
Patents	5-7 yrs.		594,300		289,300		305,000
		$	4,402,200	$	2,322,400	$	2,079,800

	Useful Lives	Cost		Accumulated Amortization		Net
As of June 30, 2021
Technology, trademarks	5-10 yrs.	$	364,700	$	362,200	$	2,500
Trade names	3-6 yrs.		592,300		152,600		439,700
Websites	3-7 yrs.		210,000		210,000		-
Customer relationships	4-10 yrs.		372,200		102,400		269,800
Sublicense agreements	10 yrs.		294,000		283,000		11,000
Non-compete agreements	4-5 yrs.		1,060,500		308,600		751,900
IPR&D	3-5 yrs.		852,100		134,800		717,300
Patents and other intangible assets	5-7 yrs.		591,500		225,900		365,600
		$	4,337,300	$	1,779,500	$	2,557,800

Total amortization expense was $265,600, $273,900 for the six months ended December 31, 2022 and 2021 (unaudited), respectively and $542,900 and $146,900 for the years ending June 30, 2022 and 2021, respectively.

Estimated future amortization expense of intangible assets as of December 31, 2022 is as follows:

As of December 31,
2023	$	516,600
2024		506,100
2025		371,500
2026		193,800
2027		92,600
Thereafter		82,400
Total	$	1,763,000

Impairment Loss

As referenced to “Restatement of Prior Period” in Note 1 above, during the preparation of its audited financial statements for the six-month transition period July 1, 2022 to December 31, 2022, the Company identified an error in the use of future projections and weighted average cost of capital used in the annual goodwill impairment testing of the Company’s Bioprocessing Systems segment. As a result of the annual goodwill impairment analysis, the Company determined the carrying value of the Bioprocessing Systems reporting unit exceeded its fair value and therefore the associated goodwill was impaired. Upon further analysis of the error, the Company determined that a goodwill impairment charge to the Bioprocessing Systems segment should have been applied in the fiscal year ended June 30, 2022. As a result of restating the fiscal year ended June 30, 2022 consolidated financial statements, the Company recorded a goodwill impairment charge of $4,280,100 to the goodwill of the Bioprocessing Systems reporting unit as the excess of carrying value over fair value was higher than the recorded amount of goodwill for the reporting unit. As of December 31, 2022 there was no remaining goodwill to the Bioprocessing System reporting unit.

During the six months ended December 31, 2022, the Company determined a technology intangible asset in the Bioprocessing segment was impaired and wrote it down by $51,500, net of accumulated amortization, to its estimated fair value of $0. There was no impairment of intangible assets for six months ended December 31, 2021 (unaudited) or for the years ending June 30, 2022 and 2021, respectively.