Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Jun. 30, 2014
Technology And Medical Software  
Technology and medical software

The Company had capitalized all acquisition costs associated with the acquisition of NuScribe Inc.  In addition, we elected to capitalize all related development costs associated with the completion of the iMedicor portal, which was included in the asset purchase of Nuscribe.  The iMedicor Ô portal was launched in late October 2007 and we were amortizing its cost on a straight-line basis over 60 months.  Total amortization expense (exclusive of impairment losses discussed below) was $14,179 for the year ended June 30, 2013.  The Company accounts for impairment of technology assets in accordance with recently issued and adopted accounting pronouncements, which require that technology with finite useful lives should be amortized, but also be tested for impairment at least annually.  If impairment exists, a write-down to fair value measured by discounting estimated future cash flows is recorded.   The Company evaluated this technology and medical software for impairment as June 30, 2013 and determined that the asset was impaired by $1,084,057 at June 30, 2013. The technology related to the portal to which these assets relate changed considerably since their acquisition and development, resulting in a change in the estimate of remaining cash flows.   Cumulative impairment losses at June 30, 2013 were $1,708,673.