Veru Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill

Intangible Assets and Goodwill

12 Months Ended

Sep. 30, 2022

Intangible Assets and Goodwill [Abstract]

Intangible Assets and Goodwill

Note 8 –Intangible Assets and Goodwill

Intangible Assets

Intangible assets includes IPR&D and covenants not-to-compete.

The gross carrying amounts and net book value of intangible assets are as follows at September 30, 2022:



	Gross Carrying		Accumulated		Net Book
	Amount		Amortization		Value
Intangible asset with finite life:
Covenants not-to-compete	$	500,000	$	422,619	$	77,381
Indefinite-lived intangible assets:
Acquired in-process research and development assets		3,900,000		—		3,900,000
Total intangible assets	$	4,400,000	$	422,619	$	3,977,381

The gross carrying amounts and net book value of intangible assets are as follows at September 30, 2021:


	Gross Carrying		Accumulated		Net Book
	Amount		Amortization		Value
Intangible asset with finite life:
Covenants not-to-compete	$	500,000	$	351,190	$	148,810
Indefinite-lived intangible assets:
Acquired in-process research and development assets		3,900,000		—		3,900,000
Total intangible assets	$	4,400,000	$	351,190	$	4,048,810

Amortization is recorded on a straight-line basis over seven years for the covenants not-to-compete. The amortization expense is recorded in selling, general and administrative expenses in the accompanying consolidated statements of operations. Amortization expense was approximately $71,000 and $113,000, for the years ended September 30, 2022 and 2021, respectively. Based on finite-lived intangible assets recorded as of September 30, 2022, the estimated future amortization expense is approximately $71,000 in fiscal 2023 and $6,000 in fiscal 2024.

Goodwill

The carrying amount of goodwill at September 30, 2022 and 2021 was $6.9 million. There was no change in the balance during the years ended September 30, 2022 and 2021.