Annual report pursuant to Section 13 and 15(d)

Intangible assets and liabilities other than goodwill

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Intangible assets and liabilities other than goodwill
 12 Months Ended
Dec. 31, 2023
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible assets and liabilities other than goodwill Intangible Assets and Liabilities Other Than Goodwill
During the year ended December 31, 2022 we capitalized $11,615 of product certification costs and $17,890 of patent-related costs. Also included in intangible assets are legal costs incurred by us to obtain patents for our intellectual property. These patents, once they are placed in service, are amortized on a straight-line basis over the estimated economic life of the associated product, which ranges from approximately 7-10 years. We did not capitalize any cost incurred for product certification costs, patent-related costs or trademarks during the year ended December 31, 2023.
Intangible assets and liabilities at December 31, 2023 and 2022 consist of the following:

December 31, 2023 December 31, 2022
Intangible assets Cost Accumulated Amortization Net Cost Accumulated Amortization Net
Product certifications $ 777,465  $ (658,676) $ 118,789  $ 777,465  $ (584,863) $ 192,602 
Patents 888,910  (496,807) 392,103  888,910  (405,140) 483,770 
Developed technology 240,000  (172,000) 68,000  240,000  (156,000) 84,000 
Trademarks 26,896  —  26,896  26,896  —  26,896 
In process R&D 263,936  (103,689) 160,247  263,936  (65,984) 197,952 
Favorable contract assets 384,465  (376,139) 8,326  384,465  (372,091) 12,374 
Customer contract $ 1,772,659  $ (110,791) 1,661,868  $ —  $ —  — 
$ 4,354,331  $ (1,918,102) $ 2,436,229  $ 2,581,672  $ (1,584,078) $ 997,594 
Intangible liability
Unfavorable contract liability $ 2,618,168  $ (2,019,122) $ 599,046  $ 2,618,168  $ (1,797,951) $ 820,217 

The aggregate amortization expense related to intangible assets and liabilities exclusive of unfavorable contract related intangibles was $333,676 and $201,043 during the years ended December 31, 2023 and 2022, respectively. The net credit to cost of sales related to the amortization of the contract related intangible asset and liability for the years ended December 31, 2023 and 2022 was $220,823 and $274,112, respectively.
Contract Asset and Liability
The favorable contract asset and unfavorable contract liability in the foregoing table represent the fair value of ADGE's customer contracts (both positive for favorable contracts and negative for unfavorable contracts) which were acquired by us on May 18, 2017 (see Note 4. "Acquisition of American DG Energy Inc."). The customer contract asset includes the maintenance agreements contracts acquired by us on April 1, 2023 as part of the Aegis acquisition (See Note 5. "Aegis Contract and Related Asset Acquisition".
During the year ended December 31, 2022, we determined that certain of the ADGE customer contracts terminated due to the customers failure to perform their obligations pursuant to the contractual agreements and accordingly reversed $151,981 of unfavorable contract liability related to these contacts. The adjustments are included in the consolidated statement of operations for the year ended December 31, 2022, as non-cash benefits within long-lived asset impairment.
Amortization of intangibles including contract related amounts is calculated using the straight line method over the remaining useful life or contract term, which range from approximately 1-11 years, and is charged against cost of sales in the accompanying consolidated statement of operations. Aggregate future amortization over the next five years is estimated to be as follows:
Non-contract related intangibles Contract related intangibles Total
2024 $ 194,675  $ (28,485) $ 166,190 
2025 169,265  34,272  203,537 
2026 163,383  82,490  245,873 
2027 162,150  90,131  252,281 
2028 17,720  96,140  113,860 
Thereafter 40,272  788,274  828,546 
  $ 747,465  $ 1,062,822  $ 1,810,287