v3.25.2
Intangible Assets
 6 Months Ended
Jun. 30, 2025
Intangible Assets  
Intangible Assets

Note 4 – Intangible Assets

 

Intangible assets consisted of the following:

 

 

 

June 30,

2025

 

 

December 31,

2024

 

 

 

 

 

 

 

 

Customer relationships

 

$-

 

 

$2,420,014

 

Supplier relationship

 

 

-

 

 

 

700,207

 

Employee expertise

 

 

-

 

 

 

1,719,807

 

Software development costs

 

 

-

 

 

 

99,609

 

 

 

 

-

 

 

 

4,939,637

 

Less: accumulated depreciation

 

 

-

 

 

 

(2,851,363)

Less: impairment loss

 

 

-

 

 

 

(2,088,274)

Total property and equipment - net

 

$-

 

 

$2,088,274

 

During the three and six months ended June 30, 2025 and 2024, the Company recognized no impairment losses.

 

As of December 31, 2023, management had not anticipated the significant decline in Gladiator’s future sales and, as a result, recorded only a partial impairment.

 

In 2024, the loss of key customers led to a significant decline in sales relative to 2023, resulting in revenue projections that could not support the current valuation of the intangible assets. In accordance with ASC 360—“Impairment or Disposal of Long-Lived Assets”—which requires that an impairment loss be recognized when an asset’s carrying amount exceeds its estimated fair value, management determined that the intangible assets used by USS were no longer expected to generate future economic benefits. Consequently, a full impairment loss equal to the carrying amount of these assets was recorded, reducing their balance to $0.