INTANGIBLE ASSETS |
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| INTANGIBLE ASSETS | Note 6. INTANGIBLE ASSETS
Intangible assets consist of the following:
Capitalized Software
Software development costs relate to the Wellgistics Tech & Hub, LLC platform. As of March 31, 2026 and December 31, 2025, the Company had gross capitalized software development costs of $2,704,641 and $2,499,543, respectively. Accumulated impairment of $649,185, recorded during the year ended December 31, 2025, remained unchanged as of March 31, 2026, resulting in a net carrying value of $2,055,456 and $1,850,358 as of March 31, 2026 and December 31, 2025, respectively. The platform has not yet been placed in service and accordingly, amortization has not commenced as of March 31, 2026.
Customer Relationships and Trademark
Intangible assets of $393,853 represent customer relationships identified and measured at fair value pursuant to the Wood Sage business combination completed in June 2024. Amortization expense related to these intangible assets was $12,308 and $12,308 for the three months ended March 31, 2026, and 2025, respectively.
Intangible assets of $11,256,067 and $10,143,137 represent customer relationships and trademarks, respectively, identified and measured at fair value in connection with the Wellgistics, LLC business combination completed in August 2024, amortized over their estimated useful lives. During the year ended December 31, 2025, the Company recognized impairment charges of $5,314,027 related to Wellgistics customer relationships and $4,565,048 related to the Wellgistics trademark, for a total intangible asset impairment charge of $9,879,075, recorded within goodwill and intangible asset impairment in the consolidated statements of operations. No impairment charges were recognized during the three months ended March 31, 2026.
Amortization expense related to Wellgistics customer relationships was $183,932 and $469,003 for the three months ended March 31, 2026 and 2025, respectively. Amortization expense related to the Wellgistics trademark was $132,722 and $281,754 for the three months ended March 31, 2026 and 2025, respectively.
Total amortization expense related to other intangible assets was $328,962 and $763,064 for the three months ended March 31, 2026 and 2025, respectively.
The following table represents the future amortization of intangible assets:
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