Annual report pursuant to Section 13 and 15(d)

Note 8 - Intangible Assets and Goodwill

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Note 8 - Intangible Assets and Goodwill
12 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 8 Intangible Assets and Goodwill

 

Intangible Assets

 

Intangible assets included IPR&D and covenants not-to-compete. As of September 30, 2024, the net book value of intangible assets was zero. 

 

The gross carrying amounts and net book value of intangible assets, which is included in other assets on the accompanying consolidated balance sheet, were as follows at September 30, 2023

 

   

Gross Carrying

   

Accumulated

   

Net Book

 
   

Amount

   

Amortization

   

Value

 

Intangible asset with finite life:

                       

Covenants not-to-compete

  $ 500,000     $ 494,048     $ 5,952  

Indefinite-lived intangible assets:

                       

Acquired in-process research and development assets

                 

Total intangible assets

  $ 500,000     $ 494,048     $ 5,952  

 

Amortization was recorded on a straight-line basis over seven years for the covenants not-to-compete. The amortization expense was recorded in selling, general and administrative expenses in the accompanying consolidated statements of operations. Amortization expense was approximately $71,000 for the year ended September 30, 2023. Amortization expense recorded for the year ended September 30, 2024 was immaterial.

 

In March 2023, the Company announced its strategic decision to refocus its drug development efforts on those drug candidates that it believes have the best opportunity to lead to long-term success and shareholder value creation. As part of this strategic decision, the Company has indefinitely ceased development of sabizabulin for prostate cancer and zuclomiphene. The Company has no current plans that would invest funds in the development of these two assets or that would lead to the Company deriving value from these two assets, which has met the criteria for abandonment under the accounting standards. This resulted in writing off the carrying amount of these two acquired in-process research and development assets and recording an impairment charge of $3.9 million for the year ended September 30, 2023.

 

Goodwill

 

The carrying amount of goodwill at September 30, 2024 and 2023 was $6.9 million. There was no change in the balance during the years ended September 30, 2024 and 2023. The Company’s goodwill is assigned to the Research and Development reporting unit, which had a negative carrying amount as of September 30, 2024.