NOTE 6. INTANGIBLE ASSETS

On May 23, 2025, the Company entered into a Co-Development Agreement with Alan to AI Consultancy Co. Limited (“the Contractor”) for the co-development of the Acquired IP. This system is an AI software designed for architecture design and automated generation of structural and MEP (Mechanical, Electrical, and Plumbing) construction drawings. Under the agreement, while the core QikBIM system intellectual property (IP) initially remains with the Contractor, the Company secures a perpetual, irrevocable, worldwide, royalty-free license to use, modify, and distribute the software, including access to its source code. Crucially, the Company holds exclusive rights for the use, management, and operation of the system in North America and Hong Kong for five years from final completion, after which the license becomes non-exclusive globally. Furthermore, the Company has an option, exercisable within three years of final completion, to either purchase the IP rights for the North American and Hong Kong version of the system or acquire equity in the Contractor (“the Option”). All development fees paid by the Company will be converted towards the acquisition cost if this option is exercised. The total contractual consideration for the acquisition was $14,993,500. Due to foreign currency translation at the applicable exchange rate on the reporting date, as further detailed in Note 2 (Foreign Currency Translation), the recorded amount in the financial statements is $14,995,881.

On March 31, 2026, the Company entered into an Intellectual Property Assignment and Co-Ownership Agreement with Alan To AI Consultancy Co. Limited, pursuant to acquire a 50% undivided co-ownership interest in certain intellectual property relating to the QikBIM system, including rights relating to the United States and Hong Kong standards adaptation and commercialization versions thereof (the “Acquired IP”). The aggregate purchase price for the Acquired IP is $17,500,000. Prior payments made by the Company to the Contractor in the aggregate amount of $11,994,800 have been credited against the purchase price. Due to foreign currency translation at the applicable exchange rate on the reporting date, the recorded amount in the financial statements is $16,002,793.

As of March 31, 2026, $5,505,676 (HK$43,147,932) remained unpaid and is recorded within accrued liabilities on the consolidated balance sheet.

Intangible assets consisted of the following at each balance sheet date:

 SCHEDULE OF INTANGIBLE ASSETS

Amortization of the intangible asset during the years ended March 31, 2026 and 2025, was $1,500,288. No intangible assets or amortization is booked as of March 31, 2025 and for the year ended March 31, 2025.

Artificial intelligence software initially recognized under the May 23, 2025 Co-Development Agreement were recorded at $14,995,881. On March 31, 2026, the Company entered into an Intellectual Property Assignment and Co-Ownership Agreement with the Contractor, which amended, restated and superseded the license-and-option arrangement under the Co-Development Agreement. As a result, the Company derecognized the $14,995,881 of intangible assets previously recognized under the Co-Development Agreement; and the newly acquired 50% co-ownership interest in the Acquired IP at $17,502,381, reflecting translation from the Company’s functional currency at the applicable exchange rates. No revenue related to QikBIM has been generated for the year ended March 31, 2026.

The future amortization of the intangible asset is as follows:

 SCHEDULE OF FUTURE AMORTIZATION OF INTANGIBLE ASSETS