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Intangible Assets, Net
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net

Note 5 – Intangible Assets, Net

 

As of December 31, 2023, intangible assets, net, other than goodwill, consist of following:

  

Name  Estimated Life (Years)   Balance as of December 31, 2022  

 

 

Additions

   Amortization   Impairment  

Balance as

of December 31, 2023

 
Intellectual property/technology   5-7   $4,473,861   $—   $(808,968)  $(3,058,539)  $606,354 
Customer base   3-10    2,885,657    —    (1,137,663)   (748,220)   999,774 
Tradenames and trademarks   5-10    1,757,891    —    (207,944)   (1,122,942)   427,005 
Non-compete agreement   —    335,933    —    (335,933)   —    — 
Platform development costs   —    1,332,516    357,724    (720,634)   (969,606)   — 
Internal use software costs   3    721,795    203,889    (343,536)   —    582,148 
Total intangible assets, net       $11,507,653   $561,613   $(3,554,678)  $(5,899,307)  $2,615,281 

 

As of December 31, 2023, the gross carrying intangible assets, accumulated amortization, impairments, and net book value, consist of following:

Name  Weighted Average Estimated Used Life (Years)   Gross Carrying Amount    Accumulated Amortization   Impairment    Net Book
Value as of
December 31, 2023  		 
Intellectual property/technology   4.25   $5,671,026   $(2,006,133)  $(3,058,539)  $606,354 
Customer base   7.17    4,411,499    (2,663,505)   (748,220)   999,774 
Tradenames and trademarks   7.17    2,082,338    (532,391)   (1,122,942)   427,005 
Non-compete agreement   —    901,198    (901,198)   —    — 
Platform development costs   —    2,345,459    (1,375,853)   (969,606)   — 
Internal use software costs   2.34    1,100,212    (518,064)   —    582,148 
Total intangible assets, net   3.42   $16,511,732   $(7,997,144)  $(5,899,307)  $2,615,281 

 

As of December 31, 2022, intangible assets, net, other than goodwill, consist of the following:

 

Name   Estimated Life (Years)     Balance as of December 31, 2021     Additions     Amortization     Balance as of December 31, 2022  
Intellectual property/technology   5-7     $ 5,427,294     $ —     $ (953,433 )   $ 4,473,861  
Customer base   3-10       4,047,319       —       (1,161,662 )     2,885,657  
Trade names and trademarks   5-10       1,985,236       —       (227,345 )     1,757,891  
Non-compete agreement   2-4       831,501       —       (495,568 )     335,933  
Platform development costs     3       995,880       817,029       (480,393 )     1,332,516  
Internal use software costs     3       278,264       618,061       (174,530 )     721,795  
Total intangible assets, net           $ 13,565,494     $ 1,435,090     $ (3,492,931 )   $ 11,507,653  

 

 

As of December 31, 2022, the gross carrying intangible assets, accumulated amortization, impairments, and net book value, consist of following:

 

Name  Weighted Average Estimated Used Life (Years)   Gross Carrying Amount   Accumulated Amortization   Impairment   Net Book
Value as of
December 31, 2022		 
Intellectual property/technology   5.99   $5,671,026   $(1,197,165)  $—   $4,473,861 
Customer base   8.17    4,411,499    (1,525,842)        2,885,657 
Tradenames and trademarks   8.17    2,082,338    (324,447)   —    1,757,891 
Non-compete agreement   0.68    901,198    (565,265)   —    335,933 
Platform development costs   2.97    1,987,735    (655,219)   —    1,332,516 
Internal use software costs    2.97    896,325    (174,530)        721,795 
Total intangible assets, net   4.75   $15,950,121   $(4,442,468)  $—   $11,507,653 

 

As of December 31, 2023 and 2022 the weighted average remaining amortization period in years was 3.42 and 4.75 years, respectively. Amortization expense for the years ended December 31, 2023 and 2022 was $3,554,678 and $3,492,931, respectively. For the year ended December 31, 2023 and 2022, amortization expense of $720,635 and 480,393 related to the platform development costs was included as part of the cost of goods sold.

 

The annual intangible impairment conducted during the fourth quarter of 2023 indicated that the fair value of the SaaS and the Company’s Drones reporting units were less than carrying value. Accordingly, the Company recorded an impairment charge to SaaS and Drones units for $2,398,618 and $3,500,689, respectively, which is included in “Impairment” on the accompanying consolidated statements of operations and comprehensive loss.

 

 

AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

 

Note 5 – Intangible Assets, Net- Continued

 

For the following years ending, the future amortization expenses consist of the following:

 

   2024   2025   2026   2027   2028   Thereafter   Total 
   For the Years Ending December 31, 
   2024   2025   2026   2027   2028   Thereafter   Total 
Intellectual property/ technology  $148,495   $148,495   $148,495   $148,495   $12,374   $—   $606,354 
Customer base   141,145    141,145    141,145    141,145    141,145    294,049    999,774 
Trade names and trademarks   60,283    60,286    60,283    60,283    60,283    125,587    427,005 
Internal use software costs   366,984    191,249    23,915    —    —    —    582,148 
Total Intangible Assets, Net  $716,907   $541,175   $373,838   $349,923   $213,802   $419,636   $2,615,281