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INTANGIBLE ASSETS, NET
12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS, NET

8. INTANGIBLE ASSETS, NET

 

Intangibles, net consisted of the following:

 

   2025   2024 
   As of 
   December 31,   December 31, 
   2025   2024 
Purchased software  $730,370   $697,405 
Capitalized software development costs   1,498,228    1,435,378 
Intangible assets, gross   2,228,598    2,132,783 
Less: accumulated amortization   (1,920,045)   (1,261,739)
Intangible assets, net  $308,553   $871,044 

 

In the software development process, once the preliminary project stage was completed and management committed to funding the software through completion and the software will be used to perform the function intended, the application development stage started. In accordance with ASC 350-40-25, the software development costs incurred in the application development stage were capitalized, and the costs incurred in the preliminary project stage were expensed.

 

In 2023, the capitalized software for internal use was completed, the capitalized costs are amortized on a straight-line basis over the estimated useful live of three years.

 

For the years ended December 31, 2025, 2024 and 2023, amortization expense amounted to $586,747, $751,208 and $468,781, respectively. The Company did not recognize impairment loss for the years ended December 31, 2025, 2024 and 2023.

 

The following summarizes total future amortization expenses of the purchased software and capitalized software development costs on December 31, 2025:

 

     
Year ending December 31,    
2026  $306,990 
2027   876 
2028   168 
2029   168 
2030 and after   351 
Total future amortization expense  $308,553