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Technology Licenses, Net

12 Months Ended

Dec. 31, 2022

Note 7 — Technology Licenses, Net


	December 31,		December 31,
	2022		2021

Licenses	$	2,443,356	$	1,038,606
Additions		30,000,000		1,404,750
Less: Accumulated Amortization		(2,284,667)		(1,053,420)
Licenses, Net	$	30,158,689	$	1,389,936

Total amortization expense related to technology licenses in the years ended December 31, 2022, 2021 and 2020 was $1,231,197, $480,945, and $393,174, respectively.

As noted above in Note 5, on May 12, 2022, the Company signed a series of agreements with Atomistic SAS, which provided for an exclusive license of key micro LED technology and for the custom design and construction of a backplane chip for cash commitments totaling $30 million along with equity issuance commitments to be made by the Company relating to the certain deliverables and the achievement of milestones by Atomistic. $15 million of the consideration was for the exclusive license of technology and know-how and developed technologies related to next generation micro LEDs and micro-displays. On December 16, 2022, the Company entered into the Atomistic Agreements expanding upon the original license to include certain alternative self-emissive micro LED technology in addition to the previously licensed technology. The Company recorded this additionally licensed technology asset at $15,000,000, which included a reclassification of $5,529,120 from fixed assets construction-in-progress, as of September 30, 2022, which was the result of the non-monetary exchange described in Note 5, and recorded an accrued liability of $9,470,880 at December 16, 2022. This was in addition to the $15,000,000 recorded under the terms of the original agreements with Atomistic.

These intangible technology license assets are to be amortized over a ten-year period, which began on May 12, 2022 and, as modified on, December 16, 2022. During the year ended December 31, 2022, the Company paid $18,500,000 towards this commitment and recorded a total of $1,231,197 in amortization relating to these intangible assets and other licenses. Total amortization expense related to licenses in the years ending December 31, 2021 and 2020 was $480,945 and $393,174, respectively. The remaining funding commitment of $11,500,000 associated with these licenses is to be paid over the next twelve months.