NOTE 5 – INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following as of December 31:

 SCHEDULE OF INTANGIBLE ASSETS, LESS ACCUMULATED AMORTIZATION

Total amortization expense for the years ended December 31, 2025 and 2024 was $56,402 and $60,716, respectively. The Company expects to recognize amortization expense of $56,432 annually in each of the next five years.

On February 5, 2024, the Company, through its wholly owned subsidiary, Two Trees Beverages, entered into a new 15-year license agreement with Shine Time, LLC, licensing territories for Tim Smith Spirits® expanding its territories beyond the United States to include all members of the European Union, the United Kingdom, Norway, Switzerland, Iceland, Serbia, Turkey and Ukraine. The Company agreed to pay a royalty of 9% on branded products covered by the license agreement, or 4.5% of any sublicensed revenue under the agreement. During the year ended December 31, 2024, the Company paid $79,688 to Shine Time, LLC pursuant to the license agreement. An additional $112,500 was due under the terms of the license agreement by April 1, 2024. The Company also agreed to issue to Shine Time, LLC 300,000 shares of the Company’s common stock with a fair value of $15,000. Such shares have not been issued as of the date of this report. As of December 31, 2025 and December 31, 2024, the royalty payable balance was $135,872 and $170,274, respectively, including remaining amounts from the amended initial fee, and is included in accounts payable on the Company’s consolidated balance sheet.