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Intangible Assets, Net
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net

Note 4 – Intangible Assets, Net

 

As of December 31, 2024, intangible assets, net, other than goodwill, consist of following:

 

Name  Estimated Life (Years)   Balance as of
December 31, 2023		   Additions   Amortization   Impairment  

Balance as of
December 31, 2024

 
Intellectual property/technology   5-7   $606,354   $—   $(148,495)  $—   $457,859 
Customer base   3-10    999,774    —    (141,145)   —    858,629 
Tradenames and trademarks   5-10    427,005    —    (60,283)   —    366,722 
Internal-use software costs   3    582,148    72,102    (381,156)   —    273,094 
Total intangible assets, net       $2,615,281   $72,102   $(731,079)  $—   $1,956,304 

 

As of December 31, 2024, 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, 2024		 
Intellectual property/technology   3.25   $5,671,026   $(2,154,628)  $(3,058,539)  $457,859 
Customer base   6.17    4,411,499    (2,804,650)   (748,220)   858,629 
Tradenames and trademarks   6.17    2,082,338    (592,674)   (1,122,942)   366,722 
Internal-use software costs   1.96    1,172,316    (899,222)   —    273,094 
Total intangible assets, net   2.30   $13,337,179   $(6,451,174)  $(4,929,701)  $1,956,304 

 

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 

 

 

AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 

Note 4 – Intangible Assets, Net- Continued

 

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, 2024 and 2023, the weighted average remaining amortization period in years was 2.30 and 3.42 years, respectively. Amortization expense for the years ended December 31, 2024 and 2023 was $731,079 and $3,554,678, respectively. For the year, ended December 31, 2024 and 2023, amortization expense of $0 and $720,635 related to the platform development costs were included as part of the cost of goods sold, respectively.

 

For the year ended December 31, 2024, the Company reviewed the indicators for impairment and concluded that no impairment of its finite-lived intangible assets existed. The annual intangible impairment conducted during the fourth quarter of 2023 indicated that the fair value of the SaaS and 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 was included in “Impairment” on the accompanying consolidated statements of operations and comprehensive loss.

 

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

 

                             
   For the Years Ending December 31, 
   2025   2026   2027   2028   2029   Thereafter   Total 
Intellectual property/ technology  $148,495   $148,495   $148,495   $12,374   $—   $—   $457,859 
Customer base   141,145    141,145    141,145    141,145    141,145    152,904    858,629 
Trade names and trademarks   60,283    60,283    60,283    60,283    60,283    65,307    366,722 
Internal-use software costs   214,653    48,520    9,921    —    —    —    273,094 
Total Intangible Assets, Net  $564,576   $398,443   $359,844   $213,802   $201,428   $218,211   $1,956,304 

 

 

AGEAGLE AERIAL SYSTEMS INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023