Note 8 - Intangible Assets

12 Months Ended

Dec. 31, 2025

Intangible Assets Disclosure [Text Block]

NOTE 8 INTANGIBLE ASSETS

The Company’s intangible assets at December 31, 2025 and 2024 include the following:

Description	*Estimated Economic Life (in years)*	*December 31, 2025*			*December 31, 2024*
Developed technologies	10	$	29,780,018		$	8,064,402
License agreements	10		499,952			499,952
Distribution agreements	8		19,733			19,733
Accumulated amortization			(5,356,315	)		(2,724,935	)
Intangible assets, net		$	24,943,388		$	5,859,152

The estimated economic lives shown above were determined at the closing dates of the respective acquisitions. The estimated economic lives of license agreements and developed technologies are based on the midpoint of the indicated lives derived from the related valuation analyses. The estimated economic lives of customer and distribution agreements are based on the specified terms of the respective agreements.

Accumulated amortization as of December 31, 2025 and 2024 consisted of the following:

	*December 31, 2025*		*December 31, 2024*
Developed technologies	$	5,116,765	$	2,536,716
License agreements		226,063		177,730
Distribution agreements		13,487		10,489
Accumulated amortization	$	5,356,315	$	2,724,935

Amortization expense related to intangible assets of $2,632,047 and $1,624,011 was recognized for the years ended December 31, 2025 and 2024, respectively.

Amendment to Flux Photon Asset Purchase Agreement

The Company and Flux Photon Corporation (“Flux Photon”) amended the 2021 Asset Purchase Agreement (the “2025 FPC Asset Purchase Agreement Amendment”) (see Note 21). In connection with this agreement, the Company recognized a developed technologies intangible asset of $10,867,000 and determined the life of the developed technologies intangible assets to be 6.4 years. From January 1, 2025 through May 21, 2025, pursuant to the FPC Asset Purchase Agreement, the Company paid an additional $300,000 on the payable which was accounted for as an acquisition of developed technologies intangible asset with a determined remaining life of 6.5 years from the date of the original purchase agreement. Additionally, pursuant to the FPC Asset Purchase Agreement Amendment, the Company is required to pay an additional $6,050,000 cash commitment to Flux Photon for the remaining Earn Out due on the FPC Asset Purchase Agreement (see Note 21). The Company accounted for the cash obligation of $6,050,000 as an acquisition cost of developed technologies and recognized an intangible asset of $4,468,617, net of implied interest.

Bioleum Founder Shares

In 2025, Bioleum issued 2.0 million Series 2 Convertible Preferred Shares to the Founders Group in exchange for the assignment of additional developed technologies (see Note 2). The Company accounted for the transaction as an asset acquisition as substantially all of the fair value of the assets acquired were concentrated in a single asset group, which are primarily developed technologies. The Company recognized the assets acquired at the fair value of consideration given and recognized an intangible asset of $5,280,000 and non-controlling equity interest and additional paid-in capital of $2,636,382 and $2,643,618, respectively, in our consolidated balance sheet (see Notes 14 and 15). The Company determined the life of the developed technologies intangible assets to be 10 years.

Hexas Acquisition

Pursuant to the Stock Purchase Agreement between Bioleum and Hexas, the Company recognized an intangible asset for developed technologies of $810,000 in our consolidated balance sheet (see Note 3). The Company determined the life of the developed technologies intangible assets to be 10 years.

Future minimum amortization expense is as follows at December 31, 2025:

2026	$	3,921,579
2027		3,921,579
2028		3,918,834
2029		3,918,582
2030		3,918,582
Thereafter		5,344,232
	$	24,943,388

Changes in the intangible assets balances for the year ended December 31, 2025 are presented below:

	*As of December 31,*											*As of December 31,*
	*2024*			*Additions*		*Impairment*			*Amortization*			*2025*
Intangible assets	$	8,584,087		$	21,725,616	$	(10,000	)	$	—		$	30,299,703
Accumulated amortization		(2,724,935	)		—		667			(2,632,047	)		(5,356,315	)
Total intangible assets	$	5,859,152		$	21,725,616	$	(9,333	)	$	(2,632,047	)	$	24,943,388

Changes in the intangible assets balances for the year ended December 31, 2024 are presented below:

	*As of December 31,*											*As of December 31,*
	*2023*			*Additions*		*Impairment*			*Amortization*			*2024*
Intangible assets	$	20,119,887		$	285,000	$	(11,820,800	)	$	—		$	8,584,087
Accumulated amortization		(4,253,855	)		—		3,152,931			(1,624,011	)		(2,724,935	)
Total intangible assets	$	15,866,032		$	285,000	$	(8,667,869	)	$	(1,624,011	)	$	5,859,152

In 2025, we determined that our ability to reprocess clean and reusable materials does not require the use of developed technology that we acquired in 2024. As a result, the Company recorded an impairment of $9,333 for the net balance of the intangible associated with the developed technology in our Corporate Segment. The total impairment in intangible assets of $9,333 was recognized during the year ended December 31, 2025 in our consolidated statement of operations. In 2024, we determined that our ability to reprocess clean and reusable materials does not require the use of developed technology that we acquired in 2021. As a result, the Company recognized an impairment of $8,655,176 for the net balance of the intangible associated with the developed technology in our Metals Segment. In addition, we recognized an impairment related to trademark of $5,133 in our Corporate Segment and license of $7,560 in our Strategic Investment Segment. The total impairment in intangible assets of $8,667,869 was recognized during the year ended December 31, 2024, in our consolidated statement of operations.

Comstock Inc. 10-K