INTANGIBLE ASSETS

9 Months Ended

Feb. 29, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The below table summarizes the identifiable intangible assets as of February 29, 2020 and May 31, 2019:

	Useful life	February 29, 2020			May 31, 2019

FCC licenses (1)		$	8,758,000		$	114,950
Research & development and Patents	5 years		3,300,000			-
Tradename/marks	5 years		165,900			510,500
Non-compete	3 years		5,688			140,500
IP/Technology	5 years		-			210,000
Customer base	5 years		-			17,000
			12,229,588			992,950
Less accumulated amortization			(248,551	)		(90,750	)
Less impairment charge			-			(615,662	)

Intangible assets, net		$	11,981,037		$	286,538

(1)

While FCC licenses are issued for only a fixed time, generally ten years, such licenses are subject to renewal by the FCC. License renewals have occurred routinely and at nominal cost in the past. There are currently no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of the Company’s FCC licenses. As a result, the Company has determined that the FCC licenses should be treated as an indefinite-lived intangible asset. The Company will evaluate the useful life determination for its FCC licenses each year to determine whether events and circumstances continue to support their treatment as an indefinite useful life asset.

The weighted average remaining useful life of identifiable intangible assets is 4.57 years. Amortization of identifiable intangible assets for the three and nine months ended February 29, 2020 and February 28, 2019 was $231,013 and $248,551 and $45,375 and $90,750, respectively. As of February 29, 2020, the estimated annual amortization expense for the remaining fiscal year is approximately $204,000. Estimated annual amortization expense for each of the next four fiscal years ranges from $660,000 to $737,000 per year through 2024, and approximately $303,000 in 2025.

IOTA COMMUNICATIONS, INC. 10-Q