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
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Liabilities Other Than Goodwill Intangible Assets and Liabilities Other Than Goodwill
As of September 30, 2024 and December 31, 2023 we had the following amounts related to intangible assets and liabilities other than goodwill:
September 30, 2024 December 31, 2023
Intangible assets Cost Accumulated Amortization Total Cost Accumulated Amortization Total
Product certifications $ 777,465  $ (702,099) $ 75,366  $ 777,465  $ (658,676) $ 118,789 
Patents 888,910  (562,581) 326,329  888,910  (496,807) 392,103 
Developed technology 240,000  (184,000) 56,000  240,000  (172,000) 68,000 
Trademarks 26,896  —  26,896  26,896  —  26,896 
In Process R&D 263,936  (131,968) 131,968  263,936  (103,689) 160,247 
Favorable contract asset 384,465  (378,914) 5,551  384,465  (376,139) 8,326 
Customer contracts 2,225,123  (242,827) 1,982,296  1,772,659  (110,791) 1,661,868 
$ 4,806,795  $ (2,202,389) $ 2,604,406  $ 4,354,331  $ (1,918,102) $ 2,436,229 
Intangible liability
Unfavorable contract liability $ 2,618,168  $ (2,153,591) $ 464,577  $ 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 nine months ended September 30, 2024 and 2023 was $46,127 and $149,476 and $55,718 and $164,229. The net aggregate amortization expense (credit) related to the amortization of the contract related intangible assets and liabilities for the three and nine months ended September 30, 2024 and 2023 was $6,015 and $342 and $3,182 and $(53,295) 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 September 30, 2024 is estimated to be as follows:
Non-contract Related Intangibles Contract Related Intangibles Total
Year 1 $ 165,671  $ 60,901  $ 226,572 
Year 2 163,235  117,272  280,507 
Year 3 162,227  128,634  290,861 
Year 4 57,013  137,208  194,221 
Year 5 31,388  137,208  168,596 
Thereafter 10,129  942,047  952,176 
Total $ 589,663  1,523,270  $ 2,112,933