Note 7 INTANGIBLE ASSETS, NET AND GOODWILL

The components of intangible assets, net at March 31, 2025 and December 31, 2024 were as follows:

SCHEDULE OF INTANGIBLE ASSETS

The tradenames, licenses and permits and customer relationships intangible assets resulted from the acquisitions of Myrtle and RCHI, which are more fully discussed in Note 5. The tradenames and licenses and permits assets have indefinite lives and the customer relationships is being amortized over three years.

The Company recognized amortization expense on its intangible assets of $3,659 and $257,674 in the three months ended March 31, 2025 and 2024, respectively. Included in the amortization expense in the three ended March 31, 2024 was $0.2 million of expense for an Epigenetic APP that was acquired from Kr8 ai Inc., a Nevada corporation controlled by one of the Company’s directors and the current interim CFO (“KR8”), as more fully discussed in Note 10 and $49,341 for a methylation pipeline asset. During the year ended December 31, 2024, the Company recorded an impairment loss of $1.6 million for the Epigenetic APP and an impairment loss of $0.2 million for its methylation pipeline asset as the timeline for projected cash flows could no longer support these assets. The Company continues to believe that its Epigenetic APP asset will play a valuable part in its Epigenetic business but needs to make further investment for this asset to generate sales. Without certainty on the timeframe, the Company believed that it was appropriate to impair the value of the asset in its records in the year ended December 31, 2024.

Goodwill

Goodwill was $30.6 million and $25.5 million as of March 31, 2025 and December 31, 2024, respectively. The goodwill resulted from the acquisitions of Myrtle and RCHI, which are more fully discussed in Note 5.