|9 Months Ended|
Sep. 30, 2022
|Goodwill and Intangible Assets Disclosure [Abstract]|
NOTE 6 – INTANGIBLE ASSETS
The components of intangible assets, all of which are finite lived, were as follows:
Amortization expenses for the three months ended September 30, 2022, and 2021 were $904,051 and $662,622, respectively. Amortization expenses for the nine months ended September 30, 2022, and 2021 were $2,726,295 and $682,239, respectively.
We recognized losses on intellectual property amounting to $11,095 and $70,895 for the nine months ended September 30, 2022 and 2021, respectively.
On March 20, 2022, the Company entered into a Purchase Agreement to acquire the assets of Ardenna, Inc., a leading provider of image processing and machine learning software solutions for rail infrastructure monitoring and inspections. The consideration for the acquisition was $900,000 in cash and 780,000 shares of the Company’s common stock (the “Ardenna Consideration Shares”). In connection of the acquisition, the parties entered into a Registration Rights and Lock-Up Agreement, which required the Company to file a resale registration statement covering the resale of the Ardenna Consideration Shares no later than ninety (90) days after the closing date and restricted the holder from transferring the Ardenna Consideration Shares for 180 days from the closing date, subject to certain exceptions. On April 5, 2022, the Company completed the acquisition. As a result of this transaction, the Company recognized developed technology in the amount of $6,843,600. The Company filed the registration statement Form S-3 on July 1, 2022, and it was declared effective on July 15, 2022.
On August 31, 2022, the Company entered into the asset purchase agreement with Field of View LLC, a North Dakota limited liability company. The total purchase consideration consisted of $250,000 of cash payable in monthly instalments over twelve months, and $75,520 shares of the Company’s common stock, representing 16,000 shares (“FOV Consideration Shares”). The asset purchase agreement restricts the holder from transferring the FOV Consideration Shares for 180 days from the closing date, subject to certain exceptions.
The Company acquired computer and research and development equipment amounting to $18,506 and intangibles for developed technology for $307,014. As of September 30, 2022, the equity was issued in full and cash paid amounted to $41,667 the balance payable of $208,333 being accounted for as accrued purchase consideration included in accrued expenses and other current liabilities payable over twelve months
Estimated amortization expense for the next five years for the intangible assets currently being amortized is as follows:
The entire disclosure for all or part of the information related to intangible assets.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef