v3.26.1
Intangible Assets
6 Months Ended
Jun. 30, 2026
Intangible Assets [Abstract]  
Intangible Assets

Note 5 — Intangible Assets

 

Patent License

 

On November 21, 2022, the Company entered into a license agreement with Dr. Theodore Anderson, a plasma physicist, whereby the Company was granted an exclusive, worldwide license under certain of Dr. Anderson’s patents. The consideration paid for the license of $33,000, which was fully paid in November of 2022, was recorded as a finite-lived intangible asset.

 

Consulting Agreement for Rainfall Ionization Equipment

 

The Company entered into a consulting agreement to engage its senior technology advisor who provides strategic technology leadership and advisory services to the Company, Scott Morris in 2022, pursuant to which the Company agreed to pay him a one-time fee upon execution of the agreement and a consulting fee of AUD 250,000 per year (equivalent to approximately $170,000 as of the effective date). In February 2025, the agreement was amended to increase the annual consulting fee to $186,000, and in June 2025, the annual consulting fee was further increased to $252,000 in exchange for the consultant assuming an additional role and responsibilities. The agreement also provided for success fees payable upon the achievement of specified sales and development milestones. On March 19, 2026, the agreement was amended to add three additional milestones, each of which would entitle Mr. Morris to a $25,000 cash bonus.  In November 2025, the Company paid an aggregate of $50,000 in milestone payments to the Technical Advisor in connection with the achievement of certain development milestones.

 

In connection with the consulting agreement, the Company also obtained from Mr. Morris an irrevocable, perpetual, non-exclusive license under certain engineering designs in connection with rainfall ionization equipment and systems. The Company fully paid the license amount of $83,750 in June 2023.

 

Intangible Assets

 

Intangible assets as of June 30, 2026 and December 31, 2025 are composed of licenses under certain patents and designs for weather modification and rainfall ionization equipment to Dr. Anderson and Mr. Morris as discussed above.

 

The Company amortizes these intangible assets on a straight-line basis over the estimated useful lives of the assets under the full-month convention. The Company plans to continually adapt to incorporate new technologies and to expand into markets that may be created by new technologies for rainfall, snowfall enhancement and fog dispersion. As a result, the Company estimates a useful life of ten years for these intangible assets based on the Company’s expected period of technological relevance and use.

 

The Company incurred approximately $3,000 and $6,000, respectively, in amortization expense for each of the three and six months ended June 30, 2026 and 2025, which was included in the accompanying unaudited condensed consolidated statements of operations. For the three and six months ended June 30, 2026 and 2025, there were no impairment charges associated with the Company’s intangible assets.