Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Liabilities Other Than Goodwill

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Intangible Assets and Liabilities Other Than Goodwill
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Liabilities Other Than Goodwill Intangible Assets and Liabilities Other Than Goodwill
As of June 30, 2024 and December 31, 2023 we had the following amounts related to intangible assets and liabilities other than goodwill:
June 30, 2024 December 31, 2023
Intangible assets Cost Accumulated Amortization Total Cost Accumulated Amortization Total
Product certifications $ 777,465  $ (691,323) $ 86,142  $ 777,465  $ (658,676) $ 118,789 
Patents 888,910  (540,656) 348,254  888,910  (496,807) 392,103 
Developed technology 240,000  (180,000) 60,000  240,000  (172,000) 68,000 
Trademarks 26,896  —  26,896  26,896  —  26,896 
In Process R&D 263,936  (122,542) 141,394  263,936  (103,689) 160,247 
Favorable contract asset 384,465  (377,989) 6,476  384,465  (376,138) 8,327 
Customer contracts 2,225,123  (195,629) 2,029,494  1,772,659  (110,791) 1,661,868 
$ 4,806,795  $ (2,108,139) $ 2,698,656  $ 4,354,331  $ (1,918,101) $ 2,436,230 
Intangible liability
Unfavorable contract liability $ 2,618,168  $ (2,111,484) $ 506,684  $ 2,618,168  $ (2,019,122) $ 599,046 
The aggregate amortization expense related to intangible assets exclusive of contract related intangibles for the three and six months ended June 30, 2024 and 2023 was $52,204 and $105,199 and $61,000 and $110,361. The net aggregate amortization expense (credit) related to the amortization of the contract related intangible assets and liabilities for the three and six months ended June 30, 2024 and 2023 was $175 and $(7,523) and $2,258 and $(58,675) respectively

Contract and Non-Contracted Related Intangibles
The favorable contract asset and unfavorable contract liability in the foregoing table represent the estimated fair value of American DG Energy's customer contracts (both positive for favorable contracts and negative for unfavorable contracts) which were acquired by us in May 2017. The customer contract asset includes the maintenance contracts acquired by us on
April 1, 2023, February 1, 2024 and May 1, 2024, as part of the Aegis acquisition (see Note 7. "Aegis Contract and Related Asset Acquisition.")
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 and general & administrative expenses in the accompanying consolidated statement of operations. Aggregate future amortization over the next five years and thereafter as of June 30, 2024 is estimated to be as follows:
Non-contract Related Intangibles Contract Related Intangibles Total
Year 1 $ 170,409  $ 44,847  $ 215,256 
Year 2 164,011  107,604  271,615 
Year 3 162,304  126,948  289,252 
Year 4 96,534  136,329  232,863 
Year 5 22,282  137,208  159,490 
Thereafter 20,250  976,350  996,600 
Total $ 635,790  1,529,286  $ 2,165,076