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

7. Intangible Assets, Net

 

The gross carrying amount and accumulated amortization of separately identifiable intangible assets are as follows:

 

   As of December 31, 2024 
   Gross Carrying Amount   Accumulated Amortization   Fair Market Value Adjustment   Impairment   Net Carrying Amount 
Developed software  $1,425,689   $
–
   $
     –
   $
–
   $1,425,689 
Patents   611,072    (41,856)   
–
    (118,831)   450,385 
Trademark   45,000    (26,000)   
–
    
–
    19,000 
Total intangible assets  $2,081,761   $(67,856)  $
–
   $(118,831)  $1,895,074 

 

   As of December 31, 2023 
   Gross
Carrying
Amount		   Accumulated
Amortization		   Fair Market Value Adjustment   Impairment   Net
Carrying
Amount		 
Developed software  $542,692   $
-
   $
-
   $
-
   $542,692 
Patents   539,840    (20,117)   
-
    
-
    519,723 
Trademark   45,000    (23,000)   
-
    
-
    22,000 
Rights to intellectual property   100,000    (20,000)   (50,000)   (30,000)   
-
 
Total intangible assets  $1,227,532   $(63,117)  $(50,000)  $(30,000)  $1,084,415 

 

Amortization expense for each of the years ended December 31, 2024 and 2023 was $24,739 and $27,372, respectively. There was no amortization expense for the developed software for the years ended December 31, 2024 and 2023.

 

ASC 360, Property, Plant, and Equipment, defines a multi-step process to test long-lived assets, including intangible assets, for recoverability that if failed would indicate impairment. First, the Company must consider whether indicators of impairment of long-lived assets are present. The Company determined the Triggering Events in conjunction with preparation of its financial statements for the year ended December 31, 2024 provided such indication.

 

Next, the Company must review the long-lived assets to define asset group(s) that would reflect the lowest level of assets to which discrete cash flows are identifiable, and test these asset groups for impairment.

 

In performing this review, the Company identified that the long-lived asset “Patents”, which have international and U.S. based patents, as the asset group. The Company evaluated its patents and identified expired international patent applications (“expired assets”) for the year ended December 31, 2024. The Company determined there were no further plans to put resources toward these international patent applications. The group of expired patents carrying value was set to its salvage value which is zero given no future cash flows.

 

For the year ended December 31, 2024, the Company recorded a $118,831 impairment charge under gain (loss) on disposal assets, which is included in other income (expense) on its consolidated statement of operations, to adjust the expiring assets salvage value of zero. There were no impairment charges for the year ended December 31, 2023.

 

The Company identified that the long-lived asset “Rights to intellectual property”, all of which relate to the Infinitracker, should be classified as abandoned (the “Abandoned Asset”) with the Company determining that it no longer has plans to provide support and sale of the product. The Abandoned Asset’s carrying value was set to its salvage value which is zero given no future cash flows. In addition, the Company abandoned the use of the associated inventory and recorded a loss of $66,690 to impair the inventory to $0 as of December 31, 2023.  

  

The impairment charges as of December 31, 2023, the Company recorded a fair market value adjustment of $50,000 and a $30,000 impairment charge under amortization expense on its consolidated statement of operations to adjust the Abandoned Asset to its salvage value of zero.

It was determined for all remaining long-lived assets (excluding the Abandoned Asset) that there were no triggering events, and therefore, no further impairment charges to long-lived assets were necessary as of December 31, 2024 and December 31, 2023.

 

Estimated amortization expense for all intangible assets subject to amortization in future years is expected to be:

 

Years ended December 31,  Amortization 
2025  $26,909 
2026   26,909 
2027   26,909 
2028   26,909 
2029   26,909 
Thereafter   1,760,529 
Total  $1,895,074