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Property and Equipment, Intangible Assets and Goodwill
 9 Months Ended
Sep. 30, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment, Intangible Assets and Goodwill

Note 6 – Property and Equipment, Intangible Assets and Goodwill

 

A summary of the Company’s property and equipment at September 30, 2025 and December 31, 2024 is as follows:

 

   Useful  September 30,   December 31, 
   Life  2025   2024 
Computer and office equipment  5-7 years  $60,000   $8,000 
Less: accumulated depreciation      (40,000)   (6,000)
Property and equipment net     $20,000   $2,000 

 

Depreciation expense was $1,000 and $5,000 for the three and nine months ended September 30, 2025, respectively, and $0 for the three and nine months ended September 30, 2024.

 

A summary of the Company’s intangible assets at September 30, 2025 and December 31, 2024 is as follows:

 

   Useful  September 30,   December 31, 
   Life  2025   2024 
            
Customer relationships  5-7 years  $25,000   $25,000 
Trade name  7 years   25,000    25,000 
Developed technology  3-5 years   325,000    325,000 
Internal use software  5 years   541,000    - 
Intangible assets gross      916,000    375,000 
Less: accumulated amortization      (75,000)   (30,000)
Intangible assets net     $841,000   $345,000 

 

Amortization expense was $15,000 and $45,000 for the three and nine months ended September 30, 2025, respectively, and $44,000 for the three and nine months ended September 30, 2024.

 

 

During the three and nine months ended September 30, 2025, the Company capitalized costs related to the development of internal-use software in accordance with ASC 350-40, Intangibles — Goodwill and Other — Internal-Use Software. Capitalized costs primarily consist of personnel and third-party fees incurred during the application development stage for software that support the Company’s Software as a Service (“SaaS”) operations. Costs incurred during the preliminary project and post-implementation stages are expensed as incurred. The capitalized internal-use software is amortized on a straight-line basis over its estimated useful life, which is 5 years, beginning when the software is ready for its intended use.

 

On September 30, 2025, the Company tested the amount of goodwill that it recorded in connection with the acquisition of SemiCab, Inc.’s business on July 3, 2024 for impairment to see if the carrying amount of goodwill exceeded its carried value. The Company calculated a market-based valuation utilizing inputs classified as Level 3 on the fair value hierarchy by multiplying one by projected 2025 revenue for the SemiCab business. The Company determined that no impairment of goodwill needed to be recorded with respect to that goodwill during the nine months ended September 30, 2025. Accordingly, the balance of that goodwill was $786,000 on September 30, 2025.

 

On May 2, 2025, SemiCab Holdings acquired 99.99% of the equity shares of SMCB from SemiCab, Inc. In connection with the acquisition, the Company recorded additional goodwill in the amount of $3,632,000. As a result, the balance of the Company’s goodwill was $4,418,000 on September 30, 2025.