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

NOTE 5 – INTANGIBLE ASSETS AND GOODWILL

 

Intangible assets

 

As a result of the acquisition of Safe Pro AI on March 9, 2023, there was a $545,625 increase in the gross intangible assets made up of $545,625 of finite lived intangible assets, consisting of a single software asset, SpotlightAI™. Spotlight AI detects threats from drone imagery, relaying precise GPS location and actionable reporting information to decision makers and ground personnel. The Company intends to utilize its AI, ML and computer vision technology to create and analyze large datasets. The Company’s technology is being used in the field by the Ukrainian government, as well as several humanitarian aid organizations.

 

During the three and six months ended June 30, 2026, the Company capitalized $30,000 and $63,500, respectively, of its direct costs. As of June 30, 2026, the Company had $781,548 of finite lived intangible assets, net.

 

As of June 30, 2026, intangible assets subject to amortization consisted of the following:

 

    June 30, 2026  
    Amortization
period
(years)
    Gross
Amount
    Accumulated
Amortization
    Net finite
intangible

assets
 
Customer relationships     5     $ 388,000     $ (388,000 )     -  
Contractual employment agreements     3       310,000       (310,000 )     -  
Acquired capitalized internal-use software development costs     3       1,174,258       (392,710 )     781,548  
            $ 1,872,258       (1,090,710 )     781,548  

 

 

SAFE PRO GROUP INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025

(unaudited)

 

For the three and six months ended June 30, 2026, amortization of intangible assets amounted to $61,121 and $116,413, respectively. For the three and six months ended June 30, 2025, amortization of intangible assets amounted to $89,986 and $174,327, respectively.

 

As of December 31, 2025, intangible assets subject to amortization consisted of the following:

 

   December 31, 2025 
   Amortization period (years)   Gross Amount   Accumulated Amortization   Net finite intangible assets 
Customer relationships  5    388,000    (388,000)   - 
Contractual employment agreements  3    310,000    (310,000)   - 
Acquired capitalized internal-use software development costs  3    1,110,758    (276,297)   834,461 
       $1,808,758   $(974,297)  $834,461 

 

Amortization of intangible assets with finite lives attributable to future periods is as follows:

 

Year ending June 30:  Amount 
Remainder of 2026  $118,391 
2027   234,861 
2028   234,852 
2029   162,439 
2030 and thereafter   31,005 
Total  $781,548