SOFTWARE |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SOFTWARE | NOTE 6 — SOFTWARE
The Company acquired the SOFTWARE through an asset transfer agreement with its former subsidiary, Hanryu Bank Co., Ltd., from which it sold all equity interest in December 2024, and through the transfer of the Faning APPLICATION. The Company recognized the acquisition cost of $4,940,000 based on the appraised value determined by an independent valuation firm.
This software has been accounted for as an intangible asset in accordance with ASC 350 – Intangibles—Goodwill and Other.
The software is being amortized on a straight-line basis over its estimated useful life of 5 years. Starting in 2025, amortization expenses related to the software will be recognized as operating expenses in the consolidated statements of operations.
The Company reviews the software for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. During the year ended December 31, 2025, management identified impairment indicators, including the Company’s limited revenue generation from the Faning platform, continuing operating losses, and early-stage commercialization status. As a result, the Company evaluated the recoverability of the software and recognized an impairment loss of $1,019,611 for the year ended December 31, 2025. The impairment loss is included in other expense in the consolidated statements of operations.
The carrying value of software consisted of the following:
Amortization expense related to software was $1,021,192 for the year ended December 31, 2025. No amortization expense was recognized for the year ended December 31, 2024, as the software was acquired in December 2024. The Company recognized an impairment loss of $1,019,611 for the year ended December 31, 2025 compared to $94,264 for the year ended December 31, 2024.
GLOBAL
INTERACTIVE TECHNOLOGIES, INC. AND SUBSIDIARIES
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