NOTE 4 INTANGIBLE ASSETS AND GOODWILL

Intangible assets consisted of the following:

 SCHEDULE OF INTANGIBLE ASSETS 

Amortization expense on intangible assets was $1,834,804 and $1,832,568 during 2025 and 2024, respectively.

During the quarter ended September 30, 2024, the Company evaluated the effectiveness of the E-commerce technology platforms it acquired in 2023. Management determined that revenues could increase without increasing its operating expenses (and potentially decrease its general and administrative expenses) using a different E-commerce technology platform. Management believes it will discontinue using its legacy platforms by October 1, 2025. Accordingly, the estimated useful life of its legacy platforms decreased from 4 to 1 year. The reduced estimated useful life of the intangible asset indicated a possible impairment of the carrying value of such intangible. Management prepared, with a third-party firm, an analysis of the future cash flows related to the legacy platform and determined that, as of September 30, 2024, such future cash flows were lower than the carrying value of the related intangible asset. Accordingly, management believes that its legacy platforms’ carrying value was impaired. Based on the future estimated discounted cash flows, Management believes that the carrying value of the legacy platforms should be $1.4 million. Accordingly, management recorded an impairment expense of $1.1 million and adjusted the carrying value of its legacy platform to $1.4 million as of and during the quarter ended September 30, 2024.

The following table sets forth the estimated amortization expenses for the next five years:

 SCHEDULE OF INTANGIBLE ASSETS AMORTIZATION EXPENSE FOR FUTURE