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Intangible Assets, Net

12 Months Ended

Dec. 31, 2024

Note 10. Intangible Assets, Net

The following table sets forth the components of the Company’s intangible assets at December 31, 2024 and 2023:

Schedule Of intangible assets
	December 31, 2024							December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Extraction Technology patents	$	113,430	$	(25,577	)	$	87,853	$	113,430	$	(18,905	)	$	94,525
Extraction Technology		16,385,157		(8,124,307	)		8,260,850		16,385,157		(7,305,049	)		9,080,108
Total intangible assets	$	16,498,587	$	(8,149,884	)	$	8,348,703	$	16,498,587	$	(7,323,954	)	$	9,174,633

The Company entered into a Contribution Agreement dated January 5, 2015, where proprietary information and intellectual property related to certain petroleum extraction technology (also known as hydrocarbon extraction technology) suitable to extract petroleum (or hydrocarbons) from tar sands and other sand-based ore bodies, and all related concepts and conceptualizations thereof (the “Extraction Technology”) was contributed to VivaVentures Energy Group, Inc., a 99% majority-owned subsidiary of Vivakor, and was assessed a fair market value of $16,385,157, which consists of the consideration of $11,800,000 and the Company assuming a deferred tax liability in the amount of $4,585,157. All ownership in the Extraction Technology (including all future enhancements, improvements, modifications, supplements, or additions to the Extraction Technology) was assigned to the Company and is currently being applied to the Company Remediation Processing Centers, which are the units that remediate material. The Extraction Technology is amortized over a 20-year life. For the years ended December 31, 2024 and 2023, the amortization expense of the technology was $819,258. Amortization expense for the years 2025 through 2028 is $819,258 in each respective year. As of December 31, 2024 and 2023, the net carrying value of the Extraction Technology is $8,260,850 and $9,080,108.

In 2019, the Company began the process of patenting the Extraction Technology and all of its developments and additions since the acquisition, and we have filed a series of patents and capitalized the costs of these patents. The capitalized costs of these patents are $113,430. The patents were placed in service in 2021 and are amortized over the patents’ useful life of twenty years. For the year ended December 31, 2024 and 2023, the amortization expense of the patents was $6,672. Amortization expense for the years 2024 through 2028 is $5,672 in each respective year. As of December 31, 2024 and 2023, the net carrying value of the patents is $87,853 and $94,525.