v3.25.1
INTANGIBLE ASSETS AND GOODWILL
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
INTANGIBLE ASSETS AND GOODWILL

NOTE 5 – INTANGIBLE ASSETS AND GOODWILL

 

Intangible assets

 

As a result of the acquisition of Safe Pro AI on March 9, 2023, there was a $545,625 increase in the gross intangible assets made up of $545,625 of finite lived intangible assets, consisting of a single software asset, SpotlightAI™. Spotlight AI detects threats from drone imagery, relaying precise GPS location and actionable reporting information to decision makers and ground personnel. The Company intends to utilize its AI, ML and computer vision technology to create and analyze large datasets. The Company’s technology is being used in the field by the Ukrainian government, as well as several humanitarian aid organizations.

 

During the three months ended March 31, 2025, the Company capitalized $105,112 of its direct costs. For the three months ended March 31, 2025, the Company has $1,109,416 of finite lived intangible assets, net.

 

As of March 31, 2025, intangible assets subject to amortization consisted of the following:

 

   March 31, 2025
   Amortization
period (years)		  Gross Amount   Accumulated
Amortization		   Net finite
intangible
assets		 
Customer relationships  5  $388,000   $(203,093)  $187,907 
Contractual employment agreements  3   310,000    (291,122)   18,878 
Acquired capitalized internal-use software development costs  3   1,023,325    (117,694)   905,631 
Amortization of intangible assets     $1,721,325   $(611,909)  $1,109,416 

 

 

SAFE PRO GROUP INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024
(unaudited)

 

For the three months ended March 31, 2025, amortization of intangible assets amounted to $84,341.

 

As of December 31, 2024, intangible assets subject to amortization consisted of the following:

 

   December 31, 2024
  

Amortization

period (years)

  Gross Amount  

Accumulated

Amortization

  

Net finite

intangible

assets

 
Customer relationships  5  $388,000   $(183,819)  $204,181 
Contractual employment agreements  3   310,000    (271,337)   38,663 
Acquired capitalized internal-use software development costs  3   918,213    (72,412)   845,801 
      $1,616,213   $(428,068)  $1,088,645 

 

For the year ended December 31, 2024 amortization of intangible assets amounted to $271,235.

 

On March 31, 2025 and December 31, 2024, goodwill consisted of the following:

 

   March 31, 2025   December 31, 2024 
Safe-Pro USA  $518,255   $518,255 
Airborne Response   166,612    166,612 
Total goodwill  $684,867   $684,867 

 

Amortization of intangible assets with finite lives attributable to future periods is as follows:

 

Year ending March 31:  Amount 
2025  $245,179 
2026   272,712 
2027   249,424 
2028   204,665 
2029   137,436 
Total  $1,109,416 

 

NOTE 7 – INTANGIBLE ASSETS AND GOODWILL

 

Intangible assets

 

As a result of the acquisition of Safe Pro AI on March 9, 2023, there was a $545,625 increase in the gross intangible assets made up of $545,625 of finite lived intangible assets, consisting of a single software asset, SpotlightAI™. Spotlight AI detects threats from drone imagery, relaying precise GPS location and actionable reporting information to decision makers and ground personnel. The Company intends to utilize its AI, ML and computer vision technology to create and analyze large datasets. The Company’s technology is being used in the field by the Ukrainian government, as well as several humanitarian aid organizations.

 

During the year ended December 31, 2024, the Company capitalized $372,588 of its direct costs. For the year ended December 31, 2024, the Company has $1,088,645 of finite lived intangible assets, net.

 

As of December 31, 2024, intangible assets subject to amortization consisted of the following:

 

   December 31, 2024
   Amortization
period (years)		  Gross Amount   Accumulated
Amortization		   Net finite
intangible
assets		 
Customer relationships  5  $388,000   $(183,819)  $204,181 
Contractual employment agreements (1)  3   310,000    (271,337)   38,663 
Acquired capitalized internal-use software development costs  3   918,213    (72,412)   845,801 
      $1,616,213   $(428,068)  $1,088,645 

 

(1)Amortization related to Airborne Response’s contractual employment agreement for Daniyel Erdberg, the Company’s CEO, was cancelled on August 30, 2024 and was fully amortized in the amount of $25,833. Currently Mr. Erdberg’s employment agreement is with Safe Pro Group Inc.

 

For the years ended December 31, 2024 and 2023, amortization of intangible assets amounted to $271,235 and $180,933, respectively.

 

As of December 31, 2023, intangible assets subject to amortization consisted of the following:

 

   December 31, 2023
   Amortization
period (years)		  Gross Amount   Accumulated
Amortization		   Net finite
intangible
assets		 
Customer relationships  5  $388,000   $(106,145)  $281,855 
Contractual employment agreements  3   310,000    (150,188)   159,812 
Acquired capitalized internal-use software development costs  3   545,625    -    545,625 
      $1,243,625   $(256,333)  $987,292 

 

Goodwill

 

On December 31, 2024 and 2023, goodwill consisted of the following:

 

   2024   2023 
   December 31, 
   2024   2023 
Safe-Pro USA  $518,255   $518,255 
Airborne Response   166,612    166,612 
Total goodwill  $684,867   $684,867 

 

 

SAFE PRO GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

 

Amortization of intangible assets with finite lives attributable to future periods is as follows:

 

Year ending December 31:  Amount 
2025  $327,787 
2026   289,123 
2027   260,285 
2028   211,450 
2029 and after   - 
Total  $1,088,645