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

Intangible Assets and Liabilities Other Than Goodwill

Intangible Assets and Liabilities Other Than Goodwill

12 Months Ended

Dec. 31, 2025

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets and Liabilities Other Than Goodwill

During the years ended December 31, 2025 and 2024, 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, 2025 and 2024 consist of the following:


	December 31, 2025						December 31, 2024
Intangible assets	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Product certifications	$	777,465	$	(732,469)	$	44,996	$	777,465	$	(709,855)	$	67,610
Patents	888,910		(682,370)		206,540		888,910		(584,493)		304,417
Developed technology	240,000		(204,000)		36,000		240,000		(188,000)		52,000
Trademarks	26,896		—		26,896		26,896		—		26,896
In process R&D	263,936		(179,100)		84,836		263,936		(141,394)		122,542
Favorable contract assets	384,465		(383,540)		925		384,465		(379,839)		4,626
Customer contract	$	2,225,123	$	(478,813)	1,746,310		$	2,225,123	$	(290,025)	1,935,098
	$	4,806,795	$	(2,660,292)	$	2,146,503	$	4,806,795	$	(2,293,606)	$	2,513,189

Intangible liability
Unfavorable contract liability	$	2,341,478	$	(2,136,143)	$	205,335	$	2,618,168	$	(2,195,329)	$	422,839

The aggregate amortization expense related to non-contract related intangible assets was $174,197 and $192,571 during the years ended December 31, 2025 and 2024, respectively. The net aggregate expense related to the amortization of the contract related intangible assets and liabilities for the years ended December 31, 2025 and 2024 was $79,041 and $6,727, 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".

During the year ended December 31, 2025, 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 $104,055

of unfavorable contract liability related to these contacts. The adjustments are included in the consolidated statement of operations for the year ended December 31, 2025, 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 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
2026	$	165,814	$	145,282	$	311,096
2027	165,507		151,998		317,505
2028	23,140		158,007		181,147
2029	5,650		158,007		163,657
2030	5,650		166,597		172,247
Thereafter	6,611		762,009		768,620
	$	372,372	$	1,541,900	$	1,914,272