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

NOTE 3 – INTANGIBLE ASSETS

 

Definite-Lived Intangible Assets

 

The Company’s definite-lived intangible assets consist of capitalized software development costs. The intangible assets are being amortized over their estimated useful lives of five years. The Company periodically evaluates the reasonableness of the useful lives of these assets. These assets are also reviewed for impairment or obsolescence when events or circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset.

                 
    Useful Life   June 30, 2026     December 31, 2025  
                 
Software development costs   5 years   $ 3,602,328     $ 3,602,328  
Less accumulated amortization         (1,498,464 )     (1,138,231 )
Net carrying value, software development costs       $ 2,103,864     $ 2,464,097  

 

During each of the three months ended June 30, 2026, and 2025, the Company recognized approximately $180,000 of amortization expense, respectively, related to capitalized software development costs. During each of the six months ended June 30, 2026 and 2025, the Company recognized approximately $360,000 of amortization expense, respectively, related to capitalized software development costs. Amortization expense is included in depreciation and amortization on the consolidated statements of operations.

  

Future approximate annual amortization of software development costs for products being marketed at June 30, 2026, is as follows:

       
Remainder of 2026   $ 360,000  
2027     720,000  
2028     720,000  
2029     304,000  
Total   $ 2,104,000