v3.26.1
Intangibles Assets
12 Months Ended
Dec. 31, 2025
Intangibles Assets  
Intangible Assets

9. Intangible Assets

 

The Company’s intangible assets are comprised of purchased intangibles consisting of customer relationships, channel relationships, telecommunications software, trade names and trademarks and non-compete agreements. Intangible assets acquired in connection with a business combination are valued at fair value and amortized on a straight-line basis over the expected useful life which may range from three (3) to fifteen (15) years or more depending on the intangible asset characteristics.

 

The Company’s intangible assets also include internally developed software used in the sales and delivery of its information technology service offerings. The Company capitalizes certain internal costs related to software development to deliver its information technology services including but not limited to its Intelligent Telecommunications Management System (ITMS™), Public Key Infrastructure (PKI) and Optimiser Telecom Data Intelligence (TDI™) applications. Significant development costs are capitalized from the point of demonstrated technological feasibility until the point in time that the product is available for general release to customers. Once the product is available for general release, capitalized costs are amortized typically on a straight-line basis generally over the expected functional life which may range from two (2) to five (5) years.

 

The following tables summarize purchased and internally developed intangible assets subject to amortization as of the periods presented below:

 

 

 

DECEMBER 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Carrying

 

 

Accumulated

 

 

Net Book

 

 

 

Amount

 

 

Amortization

 

 

Value

 

 

 

 

 

 

 

Customer Relationships

 

$2,392,000

 

 

$(1,016,600)

 

$1,375,400

 

Channel Relationships

 

 

2,628,080

 

 

 

(2,044,062)

 

 

584,018

 

Internally Developed Software

 

 

7,866,000

 

 

 

(7,283,003)

 

 

582,997

 

Trade Name and Trademarks

 

 

1,330,472

 

 

 

(520,591)

 

 

809,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$14,216,552

 

 

$(10,864,256)

 

$3,352,296

 

 

 

 

DECEMBER 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Carrying

 

 

Accumulated

 

 

Net Book

 

 

 

Amount

 

 

Amortization

 

 

Value

 

 

 

 

 

 

 

Customer Relationships

 

$2,392,000

 

 

$(777,400)

 

$1,614,600

 

Channel Relationships

 

 

2,628,080

 

 

 

(1,868,857)

 

 

759,223

 

Internally Developed Software

 

 

7,837,115

 

 

 

(6,045,723)

 

 

1,791,392

 

Trade Name and Trademarks

 

 

1,330,472

 

 

 

(431,892)

 

 

898,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$14,187,667

 

 

$(9,123,872)

 

$5,063,795

 

 

Purchased Intangibles

 

For the year ended December 31, 2025, there were no disposals or sales of purchased intangible assets.

Internally Developed

 

For the years ended December 31, 2025 and 2024, the Company did not incur any capitalized development costs. Capital work in progress is included in other long-term assets in the consolidated balance sheet.

 

The aggregate amortization expense recorded was approximately $1,740,400 and $2,252,000 for the years ended December 31, 2025 and 2024, respectively.

 

No impairment charges were recorded for the years ended December 31, 2025 and 2024.

 

As of December 31, 2025, estimated annual amortization for our intangible assets for each of the next five years and beyond is approximately:

 

2026

 

$1,041,829

 

2027

 

 

540,153

 

2028

 

 

510,324

 

2029

 

 

373,446

 

2030

 

 

308,530

 

Thereafter

 

 

578,014

 

Total

 

$3,352,296