Note 9. Intangible assets, net

Gross carrying values and accumulated amortization of intangible assets:

Schedule of Finite Lived Intangible Assets and Amortization Expenses 

Balances presented as of June 30, 2026 include amounts resulting from the acquisition of controlling interest in Veloce (on February 17, 2026) and amortization from the closing date through June 30, 2026 in addition to the Company’s pre-acquisition intangible assets. Amortization expense for intangible assets for the three months ended June 30, 2026 and 2025 totaled $1,009,013 and $941,702, respectively, and for the six months ended June 30, 2026 and 2025 totaled $2,841,966 and $1,835,322, respectively, and is included in depreciation and amortization in the Statement of Operations.

During the year ended December 31, 2022, the Company determined that there was an impairment of long-lived assets of $412,450 which related to a project no longer being pursued by the Company. In addition, for the year ended December 31, 2023, in connection with the annual review of goodwill and intangibles, the Company determined that it was necessary to write down goodwill by $5,650,000 for the TinBu reporting unit. Similarly, the Company performed an impairment analysis for the three months ended September 30, 2024 and as a result of that analysis an impairment charge of $1.6 million against TinBu’s goodwill was recorded. There were no other impairments identified or recorded at December 31, 2024 or for the year ended December 31, 2025.

Estimated amortization expense for years of useful life remaining is as follows:

Schedule of Estimated Amortization Expense

The Company had software development costs of $476,850 related to projects not placed in service as of December 31, 2025, which is included in intangible assets in the Company’s consolidated balance sheets. Amortization will be calculated using the straight-line method over the appropriate estimated useful life when the assets are put into service.