Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS

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INTANGIBLE ASSETS
9 Months Ended
Feb. 28, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

3. INTANGIBLE ASSETS

 

Intangible assets consist of the following:

 

    February 28, 2022     May 31, 2021  
             
Trade names / trademarks   $ 806,000     $ 806,000  
Customer relationships     7,633,000       7,633,000  
Non-compete agreements     313,000       313,000  
Finite lived intangible assets, gross     8,752,000       8,752,000  
Less: Accumulated amortization     (1,237,508 )     (707,147 )
Finite lived intangible assets, net   $ 7,514,492     $ 8,044,853  

 

Amortizable intangible assets, including tradenames and non-compete agreements, are amortized on a straight-line basis over 3 to 10 years. Customer relationships are amortized on a straight-line basis over 12 to 15 years. For the three months ended February 28, 2022 and 2021, amortization expense related to the intangible assets was $176,787. For the nine months ended February 28, 2022 and 2021, amortization expense related to the intangible assets was $530,361. As of February 28, 2022, the weighted average remaining useful lives of these assets was 7.58 years.

 

 

Estimated amortization expense for the next five years and thereafter is as follows:

 

Twelve Months Ending February 28,      
2022   $ 176,787  
2023     707,148  
2024     602,814  
2025     602,814  
2026     602,814  
Thereafter     4,822,114  
Intangible assets, net   $ 7,514,492