v3.26.1
Note 5 - Intangible Assets
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Intangible Asset [Text Block]

Note 5. Intangible Assets

 

Intangible asset consisted of the following as of:

 

June 30, 2026

December 31, 2025

Patents

$

160,000

$

160,000

Capitalized media content

451,244

451,244

Capitalized software

2,265,489

2,265,489

Acquired lease intangible assets

256,990

-

Total intangible assets

3,133,723

2,876,733

Less accumulated amortization

(599,686

)

(363,547

)

Intangible assets, net

$

2,534,037

$

2,513,186

 

In connection with the acquisition of the Orlando property, VirTra assumed two existing long-term lease agreements for the second building. The acquisition resulted in the recognition of lease-related intangible assets totaling $256,990. These assets are being amortized over the remaining lease terms, with expiration dates in 2028 and 2033, respectively.  Amortization expense was $236,140 and $80,453 for the six months ended June 30, 2026 and 2025, respectively. The increase in 2026 over 2025 was the capitalized software amortization starting in the second quarter of 2025 for the V-XR development.