v3.26.1
INTANGIBLE ASSETS
6 Months Ended
Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
INTANGIBLE ASSETS

NOTE 5. INTANGIBLE ASSETS

 

On April 25, 2025, the Company entered into a Stock Purchase Agreement with the shareholders of Boats and Buyers, Inc. (the “Acquiree”), pursuant to which the Company acquired 100% of the issued and outstanding shares of the Acquiree, including all related websites (including www.boatscollective.com) and intellectual property assets. The total consideration for the acquisition was approximately $0.6 million, consisting of $0.2 million in cash and 100,000 shares of the Company’s common stock valued at $3.50 per share. Included in the purchase price was a gross-up for the tax component of approximately $0.1 million.

 

The transaction has been accounted for as an asset acquisition. Substantially all of the fair value of the gross assets acquired was concentrated in a group of similar identifiable assets, specifically, website and related intellectual property. Accordingly, the purchase price was allocated to intangible assets and an intangible asset of approximately $0.6 million was recognized.

 

The common stock consideration related to this acquisition has not been issued as of June 30, 2026 and was recorded as a Common Stock Payable on the consolidated balance sheet.

 

  

Estimated Useful Life

(years)

   June 30, 2026   December 31, 2025 
Website and intellectual property  5   $632,911   $632,911 
Software(1)  5    98,146    22,432 
Accumulated amortization       (158,228)   (94,937)
Net book value      $572,829   $560,406 

 

(1)   Software has not yet been placed in service and therefore is not subject to amortization

 

Amortization expense related to the Company’s intangible assets was $63,291 and $18,333, respectively, for the six months ended June 30, 2026 and 2025. Estimated future amortization expense for the intangible assets is as follows:

 

Calendar Year  Amount 
2026  $73,106 
2027   146,211 
2028   146,211 
2029   146,211 
2030   51,275 
2031   9,815 
Total Intangible Asset Amortization  $572,829