INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The Company’s intangible assets at June 30, 2023 and December 31, 2022 include the following:


Description	Estimated Economic Life	June 30, 2023		December 31, 2022

Developed technologies	10 years	$	19,382,402	$	19,382,402
License agreements	10 years	510,752		510,752
Customer agreements	1 year	122,885		122,885
Distribution agreements	8 years	19,733		19,733
Trademarks	10 years	7,000		7,000
Accumulated amortization		(3,379,993)		(2,379,091)
Intangible assets, net		$	16,662,779	$	17,663,681

Accumulated amortization as of June 30, 2023 and December 31, 2022 consisted of the following:


	June 30, 2023		December 31, 2022
Developed technologies	$	3,142,853	$	2,172,594
License agreements	107,211		78,415
Customer agreements	122,885		122,884
Distribution agreements	5,994		4,497
Trademarks	1,050		701
Accumulated amortization	$	3,379,993	$	2,379,091

For the three-months ended June 30, 2023 and 2022, amortization expense related to intangible assets was $500,451 and $530,695, respectively. For the six-months ended June 30, 2023 and 2022, amortization expense related to intangible assets was $1,000,902 and $1,110,970, respectively.

The Company is party to three license agreements with American Science and Technology Corporation (“AST”), pursuant to which the Company agreed to license AST’s intellectual properties for use at three facilities in exchange for three facility-specific license fees of $500,000 each, and a royalty fee equal to 1.0% of the gross revenue of each of the first three licensed facilities. During 2022, the Company paid $500,000 toward the license fees which are recognized as an addition to intangible assets - developed technologies. As of June 30, 2023, we obtained the three license agreements and no additional payments are anticipated.

Future minimum amortization expense is as follows at June 30, 2023:


Remainder of 2023	$	996,750
2024	1,993,499
2025	1,993,499
2026	1,993,499
2027	1,993,499
Thereafter	7,692,033
	$	16,662,779

Changes in the intangible assets and goodwill balances for the six-months ended June 30, 2023 and 2022, are presented below:


	As of December 31, 2022		Additions		Impairment		Amortization		As of June 30, 2023
Intangible assets	$	20,042,772	$	—	$	—	$	—	$	20,042,772
Accumulated amortization	(2,379,091)		—		—		(1,000,902)		(3,379,993)

Total intangible assets and goodwill	$	17,663,681	$	—	$	—	$	(1,000,902)	$	16,662,779


	As of December 31, 2021		Additions		Impairment		Amortization		As of June 30, 2022
Intangible assets	$	23,514,259	$	500,000	$	(350,000)	$	—	$	23,664,259
Accumulated amortization	(338,958)		—		11,965		(1,110,970)		(1,437,963)
Goodwill	12,788,671		—		—		—		12,788,671
Total intangible assets and goodwill	$	35,963,972	$	500,000	$	(338,035)	$	(1,110,970)	$	35,014,967

All intangibles and goodwill are associated with the Renewable Energy segment. In 2022, the Company fully impaired the goodwill associated with acquisitions in 2021 of $12,788,671 in the renewable energy segment. Our assessment reviewed both qualitative and quantitative factors to derive the estimated fair value of our goodwill associated with our acquisitions in 2021. The Company fully impaired the goodwill associated with acquisitions in 2021 due to a decrease in the Company's stock price and market capitalization since the acquisition date. Our valuation method incorporated the present value of projected cash flows to calculate the discounted cash flows compared to the guideline for public companies. We compared the fair value as indicated by the discounted cash flows of the reporting unit to the carrying value of the goodwill and recognized a full impairment of goodwill associated with our 2021 acquisitions.

As of December 31, 2022, assets held for sale include a lease intangible with a balance of $3,501,939 which was net of related amortization of $119,548. The underlying lease and lease intangible were classified as Held for Sale at December 31, 2022 and expired in April 2023 with the Company's acquisition of the associated leased assets (see Note 8, Assets Held For Sale).