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Intangible Assets | 6 Months Ended
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Jun. 30, 2024
Intangible Assets [Abstract] |
INTANGIBLE ASSETS | NOTE 6 – INTANGIBLE ASSETS The components of intangible assets, all of which are finite lived, were as follows:
|  | June 30, 2024 |  |  | December 31, 2023 |  |  |  |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Useful Life |
Patents |  | $ | 153,788 |  |  | $ | (48,447 | ) |  | $ | 105,341 |  |  | $ | 117,810 |  |  | $ | (43,153 | ) |  | $ | 74,657 |  |  |  | 10 |
Patents in process |  |  | 124,959 |  |  |  | - |  |  |  | 124,959 |  |  |  | 142,239 |  |  |  | - |  |  |  | 142,239 |  |  |  | N/A |
Licenses |  |  | 241,909 |  |  |  | (101,952 | ) |  |  | 139,957 |  |  |  | 241,909 |  |  |  | (89,859 | ) |  |  | 152,050 |  |  |  | 10 |
Software |  |  | 227,049 |  |  |  | (185,959 | ) |  |  | 41,090 |  |  |  | 211,411 |  |  |  | (167,412 | ) |  |  | 43,999 |  |  |  | 3 |
Trademarks |  |  | 3,230,000 |  |  |  | (937,731 | ) |  |  | 2,292,269 |  |  |  | 3,230,000 |  |  |  | (776,235 | ) |  |  | 2,453,765 |  |  |  | 10 |
FAA waiver |  |  | 5,930,000 |  |  |  | (1,721,593 | ) |  |  | 4,208,407 |  |  |  | 5,930,000 |  |  |  | (1,425,101 | ) |  |  | 4,504,899 |  |  |  | 10 |
Developed technology |  |  | 27,977,331 |  |  |  | (7,098,336 | ) |  |  | 20,878,995 |  |  |  | 27,977,331 |  |  |  | (5,632,170 | ) |  |  | 22,345,161 |  |  |  | 3 - 10 |
Non-compete agreements |  |  | 840,000 |  |  |  | (840,000 | ) |  |  | - |  |  |  | 840,000 |  |  |  | (840,000 | ) |  |  | - |  |  |  | 1 |
Marketing-related assets |  |  | 890,000 |  |  |  | (127,040 | ) |  |  | 762,960 |  |  |  | 890,000 |  |  |  | (82,540 | ) |  |  | 807,460 |  |  |  | 10 |
Customer relationships |  |  | 1,010,000 |  |  |  | (306,048 | ) |  |  | 703,952 |  |  |  | 1,010,000 |  |  |  | (205,048 | ) |  |  | 804,952 |  |  |  | 5 |
|  | $ | 40,625,036 |  |  | $ | (11,367,106 | ) |  | $ | 29,257,930 |  |  | $ | 40,590,700 |  |  | $ | (9,261,518 | ) |  | $ | 31,329,182 |  |  |  |  |
Amortization expense for the three months ended June 30, 2024 and 2023 was $1,053,377 and $1,059,955, respectively. Amortization expense for the six months ended June 30, 2024 and 2023 was $2,105,588 and $2,038,793, respectively. On August 31, 2022, the Company entered into an asset purchase agreement with Field of View LLC, a North Dakota limited liability company. The total purchase consideration consisted of $250,000 of cash payable in monthly instalments over twelve months, and $75,520 of shares of the Company’s Common Stock, representing 16,000 shares (“FOV Consideration Shares”). The asset purchase agreement restricted the holder from transferring the FOV Consideration Shares for 180 days from the closing date, subject to certain exceptions. The Company acquired computer and research and development equipment amounting to $18,506 and intangibles for developed technology for $307,014. As of December 31, 2023, the cash was paid and equity was issued in full. On October 19, 2022, Airobotics entered into an Asset Purchase Agreement, as amended, to acquire all of the intellectual property, technical systems, and operations of Iron Drone Ltd. (“Iron Drone”), an Israeli-based company specializing in the development of autonomous counter-drone systems (the “Iron Drone Transaction”). The consideration for the Iron Drone Transaction was (i) $135,000 in cash, (ii) 46,129 shares of the Company’s Common Stock, (iii) warrants exercisable for 26,553 shares of the Company’s Common Stock with an exercise price of $11.95, which shall be exercisable if, during the 48 month period following the closing, the average price per share of the Company’s Common Stock exceeds $52.38 for a period of at least 90 consecutive trading days, (iv) a right to acquire 35,377 shares of the Company’s Common Stock if during the 48 month period after the closing, the average price per share of the Company’s Common Stock exceeds $18.25 for a period of at least 90 consecutive trading days, and (v) a right to acquire 70,753 shares of the Company’s Common Stock if during the 48 month period after the closing, the average price per share of Company’s Common Stock exceeds $20.27 for a period of at least 90 consecutive trading days. On March 6, 2023, the Company completed the Iron Drone Transaction. The Company acquired intangibles for developed technology for $576,717. As of December 31, 2023, the cash was paid and equity was issued in full. Estimated amortization expense for the next five years for the intangible assets currently being amortized is as follows:
Year Ending December 31, |  | Estimated Amortization |
2024 (6 months) |  | $ | 2,107,667 |
2025 |  | $ | 4,158,575 |
2026 |  | $ | 4,074,847 |
2027 |  | $ | 4,063,210 |
2028 |  | $ | 3,791,692 |
Thereafter |  | $ | 11,061,939 |
Total |  | $ | 29,257,930 |

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