Intangible Assets

9 Months Ended

Mar. 31, 2025

NOTE 4 – INTANGIBLE ASSETS

Intangible assets are summarized as follows:

	March 31, 2025		June 30, 2024
Software registration or using right	$	1,946,214	$	1,809,548
Patent		3,852,239		14,729
Software and technology development costs		53,031		11,770
Value-added telecommunications business license		15,476		15,587
Subtotal		5,866,960		1,851,634
Less: Accumulated amortization		2,061,577		1,305,633
Total	$	3,805,383	$	546,001

Software registration or using right represented the purchase cost of customized software with its source code from third party software developer.

Software and technology development cost represented development costs incurred internally after the technological feasibility was established and a working model was produced and was recorded as intangible asset.

On October 14, 2024, Tianjin Information, as the purchaser, entered into a patent purchase agreement with Hangzhou Liuhuan Technology Limited Company (“Liuhuan”), as the seller, for the acquisition of an audio playback system based on voltage following. The total purchase price is RMB 14,900,000 ($2.1 million), inclusive of a 6% VAT, and will be amortized over the three years.

On October 14, 2024, Tianjin Information, as the purchaser, entered into another patent purchase agreement with Hangzhou Liuhuan Technology Limited Company (“Liuhuan”), as the seller, for the acquisition of a B-ultrasound image target detection method and B-ultrasound scanner. The total purchase price is RMB 14,300,000 ($2.0 million), inclusive of a 6% VAT, and will be amortized over the three years.

Amortization for the three months ended March 31, 2025 and 2024 was $455,655 and $129,083, respectively. Amortization for the nine months ended March 31, 2025 and 2024 was $760,425 and $386,735, respectively. The amortization expense for the next five years as of March 31, 2025 will be $1,518,800, $1,475,558, $811,025, $0 and $0.

DATASEA INC. 10-Q