Note 6 - Intangible Assets

9 Months Ended

Jun. 30, 2025

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 6 – INTANGIBLE ASSETS

Intangible assets with finite useful lives are amortized over the period of estimated benefit using the straight-line method. The weighted average remaining useful life of intangible assets is 7.3 years. The straight-line method of amortization represents management’s best estimate of the distribution of the economic value of the intangible assets.

	*June 30, 2025*							*September 30, 2024*
						*Net*							*Net*
	*Cost*		*Accumulated*			*Carrying*		*Cost*		*Accumulated*			*Carrying*
	*Basis*		*Amortization*			*Amount*		*Basis*		*Amortization*			*Amount*
Finite-Lived Intangible Assets
Patents	$	12,123,749	$	(406,389	)	$	11,717,360	$	32,447,460	$	(6,699,330	)	$	25,748,130
Non-compete agreements		—		—			—		745,947		(308,188	)		437,759
Trademarks		1,095,693		(307,503	)		788,190		1,095,693		(225,552	)		870,141
Total finite-lived intangible assets		13,219,442		(713,892	)		12,505,550		34,289,100		(7,233,070	)		27,056,030
Total Intangible Assets	$	13,219,442	$	(713,892	)	$	12,505,550	$	34,289,100	$	(7,233,070	)	$	27,056,030

Total future amortization expense for finite-lived intangible assets is as follows:

Years Ended September 30,	*Future Amortization*
2025 (3 months)	$	438,592
2026		1,740,066
2027		1,740,066
2028		1,744,834
2029		1,740,066
Thereafter		5,101,926
Total Future Amortization	$	12,505,550

For the three and nine months ended June 30, 2025, amortization of the intangible assets was $0.5 million and $2.2 million, respectively (during the three and nine months ended June 30, 2024, $0.9 million and $3.5 million, respectively).

Due to unfavorable market conditions and decline of market prices of the Company’s common stock, we test intangible assets for recoverability. For the three and nine months ended June 30, 2025, impairment of the intangible assets amounted to $0.3 million and $12.3 million, respectively (Bollinger Motors segment; see Note 21 - Segment information). During the three and nine months ended June 30, 2024, impairment of the intangible assets was $0.0 million and $73.5 million, respectively (mainly Bollinger Motors segment, and $15.1 million recognized by Bollinger Commercial segment). Also, impairment of goodwill in the Bollinger Motors segment amounted to $28.9 million (carrying value of goodwill was zero as of both June 30, 2025 and September 30, 2024). The impairment was recognized in the financial statements mainly due to the uncertainty of future fundings required to support the business and decrease of Company's market capitalization.