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Intangible Assets, Net
 12 Months Ended
Dec. 31, 2025
Intangible Assets, Net [Abstract]  
Intangible Assets, Net

6. Intangible Assets, Net

 

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

 

    As of December 31, 2025  
    Gross Carrying Amount     Accumulated Amortization     Fair Market Value Adjustment     Impairment     Net Carrying Amount  
Patents   $ 521,302     $ (71,079 )   $      -     $      -     $ 450,223  
Trademark     45,000       (29,000 )     -              -       16,000  
Total intangible assets   $ 566,302     $ (100,079 )   $ -     $
-
     $ 466,223  

 

   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 

 

Amortization expense for each of the years ended December 31, 2025 and 2024 was $32,223 and $24,739, respectively. There was no amortization expense for the developed software for the years ended December 31, 2025 and 2024.

 

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, 2025 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.

 

It was determined for all remaining long-lived assets that there were no triggering events, and therefore, no further impairment charges to long-lived assets were necessary as of December 31, 2025 and December 31, 2024.

 

During the year ended December 31, 2025, management completed a review of the Company’s capitalized software development projects. Based on this review, management determined that projects previously capitalized as developed software no longer met the criteria for capitalization under ASC 985-20, External-Use Software, resulting from new technical development issues that did not exist and could not have been reasonably anticipated in prior periods.

 

As a result, the Company revised its estimate regarding the point at which technological feasibility is achieved for software development activities. This change in estimate was made to reflect management’s current expectations about the timing and certainty of future technological milestones.

 

The change in estimate was accounted for prospectively in accordance with ASC 250, Accounting Changes and Error Corrections, and did not require restatement of prior-period financial statements. For the year ended December 31, 2025, the Company recognized a total of $1.4 million related to costs originally capitalized in 2024 and $1.2 million related to costs capitalized during the first two quarters of 2025 as research and development expense resulting from this change.

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

 

Years ended December 31,  Amortization 
2026  $33,772 
2027   33,772 
2028   33,772
2029   33,772 
Thereafter   331,135 
Total  $466,223