v3.26.1
Intangible asset – Patent
6 Months Ended
Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Intangible asset – Patent

Note 3 – Intangible asset – Patent

 

In October 2025, the Company paid $500,000 to McMaster University pursuant to a Patent Purchase Agreement, and the Patent was formally assigned effective October 8, 2025. The acquisition was evaluated and determined to be an asset acquisition rather than a business combination, as substantially all of the fair value of the gross assets acquired is concentrated in the single identifiable asset. No other assets, liabilities, employees, or facilities were acquired in connection with this agreement. The Patent is recorded at $500,000, representing the total cash consideration paid to McMaster University, and is included in intangible assets in the accompanying condensed consolidated balance sheets.

 

Effective January 1, 2026, the Company placed the Patent into service and began amortizing it on a straight-line basis over its estimated useful life of 18 years, based on the remaining patent term. Amortization expense related to the Patent is recorded in general and administrative expense in the condensed consolidated statements of operations.

 

The following table summarizes the carrying amount of the Patent as of June 30, 2026 and December 31, 2025:

 

               
    June 30,
2026
    December 31,
2025
 
Gross carrying value   $ 500,000     $ 500,000  
Accumulated amortization     (18,519 )     -  
Net carrying amount   $ 481,481     $ 500,000  

 

Amortization expense was $6,944 and $0 for the three months ended June 30, 2026 and 2025, respectively, and $18,519 and $0 for the six months ended June 30, 2026 and 2025, respectively. Estimated future amortization expense related to the Patent is as follows:

 

       
Year ending December 31,      
2026 (excluding the six months ended June 30, 2026)   $ 13,889  
2027     27,778  
2028     27,778  
2029     27,778  
2030     27,778  
Thereafter     356,481  
Total   $ 481,481