NOTE 5 – INTANGIBLE ASSETS

The gross amount of intangible assets includes the cost of acquiring patent rights, supporting data, and the expense associated with filing various patent applications in different countries, along with granted patents. It also includes acquisition costs related to domains and licenses.

The amortization of patents and patent rights with a finite life is up to 20 years, commencing from the date of grant or acquisition. The amortization expense in the three months ended September 30, 2026, and 2025, amounted to approximately $16 thousand and $14 thousand, respectively, whereas the amortization expense in the nine months ended September 30, 2026, and 2025, amounted to approximately $48 thousand and $45 thousand, respectively.

As of September 30, 2026, the Company has capitalized approximately $2.1 million in software development costs related to three proprietary platforms: (1) a clinical data management platform designed for the collection, analysis, and real-time monitoring of clinical trial data; (2) MINT-AD, an AI-driven cognitive decline risk stratification and treatment personalization platform for Alzheimer’s disease; and (3) AHA, an internal-use platform that supports MINT-AD’s data processing and analytics capabilities. The clinical data management platform and MINT-AD are accounted for under ASC 985-20, Software to Be Sold, Leased, or Marketed. AHA is accounted for under ASC 350-40, Internal-Use Software. All three platforms are in the development stage. Amortization has not commenced, as none of the platforms have been made available for general release or placed in service. Capitalized software development costs are included in intangible assets on the accompanying condensed consolidated balance sheet.

As of September 30, 2026, the Company recognized approximately $2.7 million of intangible assets representing preferential supply rights and other contractual benefits as a “Favorable Contract” received in connection with the sale of assets associated with the Vancouver facility. The intangible assets were recognized as consideration received in a non-monetary exchange under ASC 845-10 and are being amortized in a pattern that reflects the economic benefit of the intangible assets is consumed over their estimated useful life of three years, commencing in calendar year 2028. For more information, please refer to Note 6, “Property, Plant, and Equipment”.

The Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, and reviews indefinite-lived intangible assets at least annually. The Company concluded that there was no impairment as of September 30, 2026. 

The increase in estimated amortization beginning in 2028 reflects the commencement of amortization of the Favorable Contract.