Intangible Assets

12 Months Ended

Jun. 30, 2026

Intangible Assets

Intangible Assets

Note 7. Intangible Assets

Intangible assets consisted of the following:

		June 30, 2026
		Estimated Life		Cost				Accumulated Amortization				Net Book Value
Customer relationships		4 years		$	-			$	-			$	-
Trade name		5 years			383,792				297,439				86,353
Online sales channels		2 years			-				-				-
Vendor relationships		5 years			-				-				-
Intangible assets				$	383,792			$	297,439			$	86,353

		June 30, 2025
		Estimated Life		Cost				Accumulated Amortization				Net Book Value
Customer relationships		4 years		$	1,834,692			$	1,834,692			$	-
Trade name		5 years			383,792				220,679				163,113
Online sales channels		2 years			1,800,000				1,800,000				-
Vendor relationships		5 years			6,000,000				6,000,000				-
Intangible assets				$	10,018,484			$	9,855,371			$	163,113

Amortization expense was $76,760 and $76,758 for the years ended June 30, 2026 and 2025, respectively.

During the year ended June 30, 2026, the Company disposed of fully amortized intangible assets with an original cost of approximately $9.6 million. As the intangible assets had no remaining net book value, the disposals did not result in a gain or loss.

On August 28, 2025, the Company entered into an agreement with Cybersyn Holdings, LLC, which hosts and owns the platform for Alpha City Exchange. Under the terms of the agreement, the Company paid $750,000 to acquire a contractual royalty interest equal to 14.90% of all future gross revenue generated by the platform.

The agreement provides for two additional potential investments of $250,000 each: (i) upon completion of the platform and achievement of 10,000 active users, which would increase the Company’s royalty interest to 19.90% of gross revenue, and (ii) upon the achievement of 25,000 active users. Upon achievement of the second milestone, the Company may elect to either maintain its 19.90% royalty interest in perpetuity or convert a portion of its royalty interest into a 9.99% equity ownership in Alpha City Exchange on a fully diluted basis.

As the royalty interest has no contractual termination and extends in perpetuity, the Company accounts for the initial $750,000 investment as an indefinite-lived intangible asset. The royalty interest is not amortized and is evaluated for impairment at least annually or more frequently if indicators of impairment arise.

As of June 30, 2026, the agreement remains in effect and the platform has not generated gross revenue from which the Company would be entitled to amounts under the royalty interest.

During the year ended June 30, 2026, management determined that the carrying amount of the royalty interest exceeded its estimated fair value and recognized a full impairment charge of $750,000. As a result, the royalty interest had no remaining carrying value as of June 30, 2026.

Future amortization of intangible assets as of June 30, 2026 is set forth below for the years then ended:
June 30, 2027		$	76,758
June 30, 2028			9,595
Total		$	86,353