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Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6 – INTANGIBLE ASSETS

The components of intangible assets, all of which are finite lived, were as follows:

	June 30, 2022							December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Useful Life

Patents	$	77,810	$	(19,166	)	$	58,644	$	75,266	$	(13,077	)	$	62,189		10
Patents in process		101,681		-			101,681		89,767		-			89,767		N/A
Licenses		241,909		(53,568	)		188,341		241,909		(41,471	)		200,438		10
Trademarks		3,230,000		(291,741	)		2,938,259		3,230,000		(130,242	)		3,099,758		10
FAA waiver		5,930,000		(535,613	)		5,394,387		5,930,000		(239,113	)		5,690,887		10
Developed technology		22,963,600		(1,570,060	)		21,393,540		16,120,000		(650,000	)		15,470,000		10
Non-compete agreements		840,000		(758,709	)		81,291		840,000		(338,710	)		501,290		1
Customer relationships		60,000		(10,840	)		49,161		60,000		(4,839	)		55,161		5
	$	33,445,000	$	(3,239,697	)	$	30,205,303	$	26,586,942	$	(1,417,452	)	$	25,169,489

Amortization expenses for the three months ended June 30, 2022 and 2021 were $966,918 and $6,867, respectively. Amortization expenses for the six months ended June 30, 2022 and 2021 were $1,822,244 and $19,617, respectively.

We recognized losses on intellectual property amounting to $11,095 and $70,895 for the six months ended June 30, 2022 and 2021, respectively.

On March 20, 2022, the Company entered into a Purchase Agreement to acquire the assets of Ardenna, Inc., a leading provider of image processing and machine learning software solutions for rail infrastructure monitoring and inspections. The consideration for the acquisition is $900,000 in cash and 780,000 shares of the Company’s common stock (the “Ardenna Consideration Shares”). In connection with the acquisition, the parties have entered into a Registration Rights and Lock-Up Agreement, which requires the Company to file a resale registration statement covering the resale of the Ardenna Consideration Shares no later than ninety (90) days after the closing date and restricts the holder from transferring the Ardenna Consideration Shares for 180 days from the closing date, subject to certain exceptions. On April 5, 2022, the Company completed the acquisition. As a result of this transaction, the Company recognized developed technology in the amount of $6,843,600.

Estimated amortization expense for the next five years for the intangible assets currently being amortized is as follows:

Year Ending December 31,	Estimated Amortization
2022 (6 months)	$	1,709,110
2023	$	3,255,640
2024	$	3,255,363
2025	$	3,255,363
2026	$	3,250,525
Thereafter	$	15,377,621
Total	$	30,103,622