Intangible assets consist of the following at:

The Company held 15 patents, which are included in technology. These patents covered the functions of the Company’s products that allow its machines to produce the ozone in the form of nanobubbles.

During the quarter ended June 30, 2026, the Company’s Board of Directors authorized management to initiate a plan to pursue the strategic sale of its CleanCore segment. The decision to divest this segment represents a triggering event under ASC 350, requiring an evaluation of the associated goodwill and long-lived intangible assets for impairment.

In connection with the proposed sale of the CleanCore segment, management obtained a formal valuation report from an independent third party valuation firm. The valuation report estimated the fair value of the reporting unit on a going-concern basis in the context of a potential asset or stock divestiture transaction. The fair value was determined using the Market Approach which is based on implied transaction and revenue multiples of comparable publicly traded businesses.

Due to significant unobservable inputs used to evaluate market-participant parameters, these measurements are classified as Level 3 within the fair value hierarchy. The valuation report indicated that the implied market and transaction values for the reporting unit were lower than previously projected, primarily driven by adjusted expectations from strategic buyers in the current market environment.

Because the carrying value of the reporting unit exceeded its calculated fair value, the Company recognized non-cash impairment charges of $2,237,910 to completely write down all of goodwill and $1,748,969 to fully impair all intangibles assigned to the CleanCore segment. These charges are presented within Goodwill Impairment and General and Administrative expenses, respectively, in the consolidated statement of operations. Following these adjustments, the carrying value of goodwill and intangibles for this segment is $0.00.

As a result of the Company’s annual impairment evaluation, an impairment loss on customer relationships of $261,250 was recorded as of June 30, 2025.

Amortization expense related to intangibles was $249,541 and $193,364 for the years ended June 30, 2026 and 2025, respectively.