| Goodwill and Intangible Assets, Net |
Note 5 - Goodwill and Intangible Assets, Net
Goodwill
The following table reflects the changes
in the carrying amount of goodwill during the year ended June 30, 2020:
| Balance as of June 30, 2019 |
|
$ |
— |
|
| Additions due to acquisitions |
|
|
20,254,309 |
|
| Balance as of June 30, 2020 |
|
$ |
20,254,309 |
|
Finite-lived Intangible Assets, Net
Intangible assets as of June 30, 2020 consist of the following:
| |
|
Weighted average remaining amortization period (in years) |
|
|
Gross carrying amount |
|
|
Accumulated amortization |
|
|
Net
carrying
amount |
|
| Acquired developed technology |
|
|
4.42 |
|
|
$ |
7,370,000 |
|
|
$ |
(679,696 |
) |
|
$ |
6,690,304 |
|
| Acquired trade names |
|
|
7.40 |
|
|
|
420,000 |
|
|
|
(23,248 |
) |
|
|
396,752 |
|
| Customer relationships |
|
|
1.75 |
|
|
|
220,000 |
|
|
|
(24,475 |
) |
|
|
195,525 |
|
| Other intangible assets, not yet placed into service |
|
|
N/A |
|
|
|
211,394 |
|
|
|
— |
|
|
|
211,394 |
|
| Intangible assets |
|
|
|
|
|
$ |
8,221,394 |
|
|
$ |
(727,419 |
) |
|
$ |
7,493,975 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capitalized software - In-service |
|
|
1.86 |
|
|
|
2,852,044 |
|
|
|
(560,528 |
) |
|
|
2,291,516 |
|
| Capitalized software - Work in Progress |
|
|
N/A |
|
|
|
337,788 |
|
|
|
— |
|
|
|
337,788 |
|
| Total Capitalized Software |
|
|
|
|
|
|
3,189,832 |
|
|
|
(560,528 |
) |
|
|
2,629,304 |
|
| Total finite-lived intangible assets |
|
|
|
|
|
$ |
11,411,226 |
|
|
$ |
(1,287,947 |
) |
|
$ |
10,123,279 |
|
We record amortization expense associated
with acquired developed technology, acquired trade names, and customer relationships. The amortization expense of all finite-lived
intangible assets, which includes capitalized software was $1.3 million for the year ended June 30, 2020.
As of June 30, 2020, expected amortization expense relating
to capitalized software and purchased intangible assets for each of the next five years and thereafter is as follows:
| |
|
Acquired Intangible Assets |
|
|
Capitalized Software |
|
| 2021 |
|
$ |
1,711,444 |
|
|
$ |
1,325,851 |
|
| 2022 |
|
|
1,663,607 |
|
|
|
806,012 |
|
| 2023 |
|
|
1,490,511 |
|
|
|
63,838 |
|
| 2024 |
|
|
1,469,778 |
|
|
|
63,838 |
|
| 2025 |
|
|
813,444 |
|
|
|
31,977 |
|
| Thereafter |
|
|
133,797 |
|
|
|
— |
|
| Total |
|
$ |
7,282,581 |
|
|
$ |
2,291,516 |
|