| INTANGIBLE ASSETS, NET |
NOTE 4. – INTANGIBLE ASSETS, NET Intangible Assets, Net Our intangible assets, net at June 30, 2026 and December 31, 2025 consisted of the following: | | | | | | | | | | | | Gross | | Accumulated | | | Net Carrying | June 30, 2026 | | Carrying Amount | | Amortization | | | Amount | Definite-lived: | | | | | | | | | | Patent | | $ | 2,080 | | $ | (1,682) | | $ | 398 | License fees | | | 5,331 | | | (2,327) | | | 3,004 | Total amortizing intangible assets | | $ | 7,411 | | $ | (4,009) | | $ | 3,402 | Indefinite-lived: | | | | | | | | | | Trademarks | | | | | | | | $ | 104 | MSA signatory costs | | | | | | | | | 2,202 | License fee for predicate cigarette brand | | | | | | | | | 350 | Total indefinite-lived intangible assets | | | | | | | | $ | 2,656 | Total intangible assets, net | | | | | | | | $ | 6,058 |
| | | | | | | | | | | | | | | Gross | | Accumulated | | | | | Net Carrying | December 31, 2025 | | Carrying Amount | | Amortization | | Impairment | | Amount | Definite-lived: | | | | | | | | | | | | | Patent | | $ | 2,985 | | $ | (2,461) | | $ | (111) | | $ | 413 | License fees | | | 5,331 | | | (2,174) | | | — | | | 3,157 | Total amortizing intangible assets | | $ | 8,316 | | $ | (4,635) | | $ | (111) | | $ | 3,570 | Indefinite-lived: | | | | | | | | | | | | | Trademarks | | | | | | | | | | | $ | 102 | MSA signatory costs | | | | | | | | | | | | 2,202 | License fee for predicate cigarette brand | | | | | | | | | | | | 350 | Total indefinite-lived intangible assets | | | | | | | | | | | $ | 2,654 | Total intangible assets, net | | | | | | | | | | | $ | 6,224 |
During the three and six months ended June 30, 2026, the Company had disposal costs of $80 and $924, respectively, related to expired and abandoned patent costs that have not yet been granted, of which had a carrying value of $0 at the time of disposal. Aggregate intangible asset amortization expense comprises of the following: | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Cost of goods sold | | $ | 2 | | $ | 2 | | $ | 4 | | $ | 5 | Research and development | | | 91 | | | 110 | | | 182 | | | 211 | Total amortization expense | | $ | 93 | | $ | 112 | | $ | 186 | | $ | 216 |
Estimated future intangible asset amortization expense based on the carrying value as of June 30, 2026 is as follows: | | | | | | | | | | | | | | | | | | | | | 2026 | | 2027 | | 2028 | | 2029 | | 2030 | | Thereafter | Amortization expense | | $ | 187 | | $ | 371 | | $ | 336 | | $ | 248 | | $ | 243 | | $ | 2,017 |
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