Annual report [Section 13 and 15(d), not S-K Item 405]

Intangible assets and liabilities other than goodwill

v3.25.1
Intangible assets and liabilities other than goodwill
 12 Months Ended
Dec. 31, 2024
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
Intangible assets and liabilities other than goodwill Intangible Assets and Liabilities Other Than Goodwill
During the years ended December 31, 2024 and 2023, we did not capitalize any cost incurred for product certification costs, patent-related costs or trademarks. 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.
Intangible assets and liabilities at December 31, 2024 and 2023 consist of the following:

December 31, 2024 December 31, 2023
Intangible assets Cost Accumulated Amortization Net Cost Accumulated Amortization Net
Product certifications $ 777,465  $ (709,855) $ 67,610  $ 777,465  $ (658,676) $ 118,789 
Patents 888,910  (584,493) 304,417  888,910  (496,807) 392,103 
Developed technology 240,000  (188,000) 52,000  240,000  (172,000) 68,000 
Trademarks 26,896  —  26,896  26,896  —  26,896 
In process R&D 263,936  (141,394) 122,542  263,936  (103,689) 160,247 
Favorable contract assets 384,465  (379,839) 4,626  384,465  (376,139) 8,326 
Customer contract $ 2,225,123  $ (290,025) 1,935,098  $ 1,772,659  $ (110,791) 1,661,868 
$ 4,806,795  $ (2,293,606) $ 2,513,189  $ 4,354,331  $ (1,918,102) $ 2,436,229 
Intangible liability
Unfavorable contract liability $ 2,618,168  $ (2,195,329) $ 422,839  $ 2,618,168  $ (2,019,122) $ 599,046 
The aggregate amortization expense related to non-contract related intangible assets was $192,571 and $222,884 during the years ended December 31, 2024 and 2023, respectively. The net aggregate expense (credit) related to the amortization of the contract related intangible assets and liabilities for the years ended December 31, 2024 and 2023 was $6,727 and $(110,031), 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 services contracts acquired by us on April 1, 2023 as part of the Aegis acquisition and pursuant to the February 2024 Amendment and the May 2024 Amendment. (See Note 5. "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 one to eleven 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
2025 $ 169,754  $ 79,042  $ 248,796 
2026 168,244  124,483  292,727 
2027 167,936  131,199  299,135 
2028 23,278  137,208  160,486 
2029 5,786  137,208  142,994 
Thereafter 11,571  907,745  919,316 
  $ 546,569  $ 1,516,885  $ 2,063,454