v3.26.1
Intangible Assets and Goodwill
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]    
Intangible Assets and Goodwill

Note 8. Intangible Assets

 

Intangible assets consisted of the following:

 

               
    March 31,
2026		     December 31,
2025		  
Intangible assets, gross   $ 16,498,587     $ 16,498,587  
Accumulated amortization     (9,182,297 )     (8,975,815 )
Intangible assets, net   $ 7,316,290     $ 7,522,772  

 

Customer relationship intangible assets consisted of the following:

 

                 
Customer relationships, gross   $ 48,093,160     $ 48,093,160  
Accumulated amortization     (11,097,708 )     (9,909,103 )
Customer relationships, net   $ 36,995,452     $ 38,184,057  

 

Amortization expense was approximately $1,395,088 and $2,303,957 for the three months ended March 31, 2026 and 2025, respectively.

 

The Company evaluates long-lived assets and intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment charges related to intangible assets were recorded during the three months ended March 31, 2026.

 

Goodwill was fully impaired during the year ended December 31, 2025. Accordingly, the Company had no goodwill recorded as of March 31, 2026 or December 31, 2025.

 

Note 8. Intangible Assets and Goodwill

 

The following table sets forth the components of the Company’s intangible assets at December 31, 2025 and 2024:

 

                                               
    December 31, 2025     December 31, 2024  
    Gross
Carrying
Amount		     Accumulated
Amortization		     Net Book
Value		     Gross
Carrying
Amount		     Accumulated
Amortization		     Net Book
Value		  
Extraction Technology Patents     16,385,157       (8,943,565 )     7,441,592       16,385,157       (8,124,307 )     8,260,850  
Extraction Technology Patents     113,430       (32,250 )     81,180       113,430       (25,577 )     87,853  
Total Intangible Assets   $ 16,498,587     $ (8,975,815 )   $ 7,522,772     $ 16,498,587     $ (8,149,884 )   $ 8,348,703  

 

The following table sets forth the components of the Company’s customer relationships at December 31, 2025 and 2024:

 

                                               
    December 31, 2025     December 31, 2024  
    Gross
Carrying
Amount		     Accumulated
Amortization		     Net Book
Value		     Gross
Carrying
Amount		     Accumulated
Amortization		     Net Book
Value		  
Oil Storage Agreement   $ 7,387,054     $ (2,680,259 )   $ 4,706,795     $ 7,387,054     $ (1,895,793 )   $ 5,491,261  
Crude Petroleum Supply Agreement     9,401,706       (3,411,234 )     5,990,472       9,401,706       (2,412,823 )     6,988,883  
Customer Relationships     31,304,400       (3,817,610 )     27,486,790       31,304,400       (763,522 )     30,540,878  
Total Customer Relationships   $ 48,093,160     $ (9,909,103 )   $ 38,184,057     $ 48,093,160     $ (5,072,138 )   $ 43,021,022  

 

Amortization expense was $5,662,895 and $2,438,382 for the years ended December 31, 2025 and 2024 respectively. The table that follows summarizes estimated amortization expense for the Company’s current intangible assets:

 

                             
    Estimated  
Intangible Assets   2026     2027     2028     2029     2030  
Amortization Expense   $ 5,580,353     $ 5,580,353     $ 5,580,353     $ 5,580,353     $ 5,580,353  

 

For the year ended December 31, 2024, the Company recorded an impairment loss of $8,632,773 related primarily to its Kuwait RPC assets and associated intangible assets, including $7,047,179 related to RPC assets and $1,530,496 related to an exclusive license agreement for nanosponge technology. No impairment of long-lived assets was recorded during the year ended December 31, 2025.

 

No goodwill impairment was recorded during the years ended December 31, 2024.

 

During the year ended December 31, 2025, the Company reduced goodwill by $28,316,081 in connection with the divestiture of certain business units. Additional information regarding the divestiture activities is included in Note 4 - Business Combination and Divestiture of Wholly Owned Subsidiaries.

 

In addition, the Company determined that the remaining goodwill was impaired and recorded an impairment charge of $40,569,772, resulting in a full impairment of goodwill as of December 31, 2025.

 

As of December 31, 2025 and 2024, the changes in the carrying amount of goodwill are as follows:

 

       
    Goodwill  
January 1, 2024   $ 14,984,768  
Business combination     53,901,085  
December 31, 2024   $ 68,885,853  
Divestiture of wholly owned subsidiaries     (28,316,081 )
Impairment     (40,569,772 )
Balance at December 31, 2025   $ -  

 

See Note 4 - Business Combination and Divestiture of Wholly Owned Subsidiaries for additional information.