| GOODWILL AND INTANGIBLE ASSETS |
6 - GOODWILL AND INTANGIBLE ASSETS
Goodwill
The following is a summary of activity
in goodwill for the three months ended March 31, 2025 and 2024:
| | |
March 31,
2025 | |
| Balance at December 31, 2024 | |
$ | 4,779,625 | |
| Foreign exchange transactions | |
| 144,526 | |
| Balance at March 31, 2025 | |
| 4,924,151 | |
| | |
March 31,
2024 | |
| Balance at December 31, 2023 | |
$ | 4,797,078 | |
| Foreign exchange transactions | |
| 16,156 | |
| Balance at March 31, 2024 | |
| 4,813,234 | |
Intangible Assets
Intangible assets consist of the following:
| | | As of March 31, 2025 | | | | | Amortization
Period | | | Costs as of
December 31,
2024 | | | Additions | | | Disposals | | | Ending
Costs | | | Accumulated
Amortization | | | Accumulated
Impairment | | | Net Book
Value | | | Patents | | | 15 years | | | $ | 7,551,468 | | | $ | 130,991 | | | | - | | | | 7,682,459 | | | | (6,784,407 | ) | | | - | | | $ | 898,052 | |
| | | As of December 31, 2024 | | | | | Amortization | | | Costs as of
January 1, | | | | | | | | | Ending | | | Accumulated | | | Accumulated | | | Net Book | | | | | Period | | | 2024 | | | Additions | | | Disposals | | | Costs | | | Amortization | | | Impairment | | | Value | | | Patents | | | 15 years | | | $ | 7,332,227 | | | $ | 219,241 | | | $ | - | | | $ | 7,506,485 | | | $ | (6,765,407 | ) | | $ | - | | | $ | 786,061 | | | IPR&D | | | 5 years | | | | 5,015,694 | | | | - | | | | - | | | | 5,015,694 | | | | (3,554,784 | ) | | | (1,460,910 | ) | | | - | | | Other intellectual assts | | | 5 years | | | | 969,278 | | | | - | | | | - | | | | 969,278 | | | | (969,278 | ) | | | - | | | | - | | | Intangible assets, net | | | | | | $ | 13,317,199 | | | $ | 219,241 | | | $ | - | | | $ | 13,536,440 | | | $ | (11,289,469 | ) | | $ | (1,460,910 | ) | | $ | 786,061 | |
Intangible assets primarily consist
of patents, patent applications, and in-process research and development (“IPR&D”) and other identifiable intangible assets.
Intangible assets are generally amortized on a straight-line basis over the periods of benefit. The Company’s patents have estimated
remaining economic useful lives ranging from 5-15 years. Management reviews intangible assets for impairment when events and circumstances
warrant. During the three months ended March 31, 2025 and 2024, there were no events that necessitated additional impairment of intangible
assets.
Intangible asset amortization expense
for the three months ended March 31, 2025 and 2024, totaled $19,000 and $14,065, respectively. Future estimated amortization expense
for the Company’s intangible assets is approximately as follows:
| Future estimated amortization as of March 31, 2025 | |
| |
| Remainder of 2025 | |
$ | 57,000 | |
| 2026 | |
| 76,000 | |
| 2027 | |
| 76,000 | |
| 2028 | |
| 76,000 | |
| 2029 | |
| 76,000 | |
| Thereafter | |
| 537,052 | |
| | |
$ | 898,052 | |
|
6
- GOODWILL AND INTANGIBLE ASSETS
Goodwill
The
following is a summary of activity in goodwill:
| | |
December
31,
2024 | |
| Balance at December 31, 2022 | |
$ | 4,576,572 | |
| Foreign exchange transaction | |
| 220,506 | |
| Balance at December 31, 2023 | |
| 4,797,078 | |
| Foreign exchange transactions | |
| (17,453 | ) |
| Balance at December 31, 2024 | |
$ | 4,779,625 | |
Intangibles
Intangible
assets consist of the following:
| | |
As
of December 31, 2024 | |
| | |
Amortization
Period | | |
Costs
as of
January 1, 2024 | | |
Additions | | |
Disposals | | |
Ending
Costs | | |
Accumulated
Amortization | | |
Accumulated
Impairment | | |
Net
Book
Value | |
| Patents | |
5-15 years | | |
$ | 7,332,227 | | |
$ | 219,241 | | |
$ | - | | |
$ | 7,506,485 | | |
$ | (6,765,407 | ) | |
$ | - | | |
$ | 786,061 | |
| IPR&D | |
5 years | | |
| 5,015,694 | | |
| - | | |
| - | | |
| 5,015,694 | | |
| (3,554,784 | ) | |
| (1,460,910 | ) | |
| - | |
| Other
intellectual assets | |
5 years | | |
| 969,278 | | |
| - | | |
| - | | |
| 969,278 | | |
| (969,278 | ) | |
| - | | |
| - | |
| Intangible
assets, net | |
| | |
$ | 13,317,199 | | |
$ | 219,241 | | |
$ | - | | |
$ | 13,536,440 | | |
$ | (11,289,469 | ) | |
$ | (1,460,910 | ) | |
$ | 786,061 | |
| | |
As
of December 31, 2023 |
| | |
Amortization | |
Costs as of
January 1, | | |
| | |
| | |
Ending | | |
Accumulated | | |
Accumulated | | |
Net Book | |
| | |
Period | |
2023 | | |
Additions | | |
Disposals | | |
Costs | | |
Amortization | | |
Impairment | | |
Value | |
| Patents | |
5-15 years | |
$ | 7,220,776 | | |
$ | 111,451 | | |
$ | - | | |
$ | 7,332,227 | | |
$ | (6,703,750 | ) | |
$ | - | | |
$ | 628,477 | |
| IPR&D | |
5 years | |
| 5,015,694 | | |
| - | | |
| - | | |
| 5,015,694 | | |
| (3,554,784 | ) | |
| (1,460,910 | ) | |
| - | |
| Other
intellectual assets | |
5 years | |
| 969,278 | | |
| - | | |
| - | | |
| 969,278 | | |
| (969,278 | ) | |
| - | | |
| - | |
| Intangible
assets, net | |
| |
$ | 13,205,748 | | |
$ | 111,451 | | |
$ | - | | |
$ | 13,317,199 | | |
$ | (11,227,812 | ) | |
$ | (1,460,910 | ) | |
$ | 628,477 | |
Intangible
assets primarily consist of patents, patent applications, and in-process research and development (“IPR&D”) and other
identifiable intangible assets. Intangible assets are generally amortized on a straight-line basis over the periods of benefit. The Company’s
patents have estimated remaining economic useful lives ranging from 5-15 years. Management reviews intangible assets for impairment when
events and circumstances warrant. December 31, 2024 and 2023, no events have occurred that required additional impairment of intangible
assets.
Intangible
asset amortization expense, for the years ended December 31, 2024 and 2023 totaled approximately $62,000 and $534,000, respectively.
Future
estimated amortization expense for the Company’s intangible assets is approximately as follows:
| Future estimated
amortization as of December 31, 2024 | |
| |
| 2025 | |
| 55,444 | |
| 2026 | |
| 55,444 | |
| 2027 | |
| 55,444 | |
| 2028 | |
| 55,444 | |
| 2029 | |
| 55,444 | |
| Thereafter | |
| 508,841 | |
| | |
$ | 786,061 | |
|