Ideal Power Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Intangible Assets

Note 3 - Intangible Assets

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

Note 3 – Intangible Assets

Intangible assets, net consisted of the following:

	September 30,			December 31,
	2024			2023
	(unaudited)
Patents	$	1,712,993		$	1,530,257
Trademarks		22,624			15,794
Other intangible assets		1,843,036			1,843,036
		3,578,653			3,389,087
Accumulated amortization - patents		(329,616	)		(272,872	)
Accumulated amortization - other intangible assets		(640,212	)		(536,149	)
	$	2,608,825		$	2,580,066

At September 30, 2024 and December 31, 2023, the Company had capitalized $507,240 and $460,890, respectively, for costs related to patents that have not been awarded. Cost related to patents that have not yet been awarded are not amortized until patent issuance. For the nine months ended September 30, 2024, the Company wrote-off a capitalized patent of $62,073.

At September 30, 2024 and December 31, 2023, the Company had capitalized $22,624 and $15,794, respectively, for costs related to trademarks. Costs related to indefinite life trademarks are not amortized but are subject to evaluation for potential impairment.

Amortization expense amounted to $54,205 and $160,807 for the three and nine months ended September 30, 2024, respectively, and $50,420 and $138,824 for the three and nine months ended September 30, 2023, respectively. Amortization expense for the succeeding five years and thereafter is $54,186 (remaining three months of 2024), $216,746 (2025-2028) and $1,157,792 (thereafter).