NOTE 6 – INTANGIBLE ASSETS

Intangible assets mainly consist of the valuation of identifiable intangible assets acquired in connection with the acquisition of RPM, representing developed technology and trade name. The Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value the identifiable intangible assets at the acquisition date. The straight-line method of amortization represents the Company’s best estimate of the distribution of the economic value of the identifiable intangible assets.

In addition, in connection with the acquisition of RPM, the purchase price exceeded the fair value of net assets acquired by $12,808,197. The Company allocated the $12,808,197 excess to goodwill. Goodwill is not amortized, but is tested for impairment at March 31, 2026. On March 31, 2026, the Company assessed its goodwill for any impairment and concluded that there were not indicators of impairment as of March 31, 2026.

During the three months ending March 31, 2026, the Company capitalized certain software development costs incurred amounting to $18,037 since the Company’s software development projects were in the application development stage. The internal-use software has not yet been placed in service as of March 31, 2026.

At March 31, 2026 and December 31, 2025, intangible assets consisted of the following:

For the three months ended March 31, 2026 and 2025, amortization expense amounted to $563,000 and $0, respectively.

Amortization of intangible assets, excluding internal-use software, which has not yet been placed in service as of March 31, 2026, attributable to future periods is as follows: