Quarterly report pursuant to Section 13 or 15(d)

5. INTANGIBLE ASSETS

v3.21.1
5. INTANGIBLE ASSETS
9 Months Ended
Feb. 28, 2021
Notes  
5. INTANGIBLE ASSETS

5. INTANGIBLE ASSETS 

 

Intangible assets consist of the following at February 28, 2021 and May 31, 2020:

 

 

February 28,

2021

 

May 31,

2020

 

 

(Unaudited)

 

 

Trade names / trademarks

$

806,000

$

806,000

Customer relationships

 

7,633,000

 

7,633,000

Non-compete agreements

 

313,000

 

313,000

 

8,752,000

 

8,752,000

Less: Accumulated amortization

 

(530,361)

 

-

$

8,221,639

$

8,752,000

 

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 and nine months ended February 28, 2021, amortization expense related to the intangible assets was $176,787 and $530,361, respectively. For the period from October 28, 2019 (inception) through February 29, 2020, there was no amortization expense related to the intangible assets due to timing of the acquisition and the Company’s fiscal year-end. As of February 28, 2021, the weighted average remaining useful lives of these assets were 10.05 years.

 

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

 

Twelve Months Ending February 28,

 

 

2022

$

707,143

2023

 

707,143

2024

 

654,976

2025

 

602,810

2026

 

602,810

Thereafter

 

4,946,757

 

$

8,221,639