INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 7 — INTANGIBLE ASSETS

The following table illustrates finite intangible assets as of June 30, 2023:

	Proprietary Technology					Patents and Licenses					Trade Names & Technology					Customer Relationships
			Accumulated					Accumulated					Accumulated					Accumulated
	Cost		Amortization			Cost		Amortization			Cost		Amortization			Cost		Amortization			Net
Balance, December 31, 2022	$	2,132,000	$	(815,000	)	$	12,378,000	$	(12,378,000	)	$	2,251,000	$	(1,189,000	)	$	5,095,000	$	(3,074,000	)	$	4,400,000
Amortization		—		(294,000	)		—		—			—		(69,000	)		—		(127,000	)		(490,000	)
Balance, June 30, 2023	$	2,132,000	$	(1,109,000	)	$	12,378,000	$	(12,378,000	)	$	2,251,000	$	(1,258,000	)	$	5,095,000	$	(3,201,000	)	$	3,910,000

The Company continuously monitors intangible assets for potential impairments based on operating results, events, and circumstances. As of June 30, 2023, management identified no triggering events.

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 7 — INTANGIBLE ASSETS (continued)

The Company’s groups of intangible assets consist primarily of:

Proprietary Technology:

Generally, the Company amortizes proprietary technology over 3 to 5 years. Wireless multiplex transmitters and artificial intelligence are the proprietary technologies that MVP uses internally to produce and sell products and services to customers.

Patents and Licenses:

Patents and licenses filed by the Company are amortized for 18.5 to 20 years. The amortization of the costs associated with provisional patents and pending applications begins after successful review and filing.

Trade Name, Technology, and Customer Relationships:

Other intangible assets are amortized for 3 to 15 years. Prior IMT, Vislink, and MVP acquisitions contributed to developing these intangible assets, including trade names, technology, and customer lists.

The Company has recognized net capitalized intangible costs as follows:

	June 30,		December 31,
	2023		2022
Proprietary Technology	$	1,025,000	$	1,319,000
Trade Names and Technology		991,000		1,060,000
Customer Relationships		1,894,000		2,021,000
	$	3,910,000	$	4,400,000

The Company has recognized the amortization of intangible assets as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Proprietary Technology	$	148,000	$	148,000	$	294,000	$	293,000
Patents and Licenses		—		167,000		—		331,000
Trade Names and Technology		34,000		34,000		69,000		69,000
Customer Relationships		64,000		64,000		127,000		127,000
	$	246,000	$	413,000	$	490,000	$	820,000

The weighted average remaining life of the amortization of the Company’s intangible assets is approximately 5.2 years as of June 30, 2023. The following table represents the estimated amortization expense for total intangible assets for the succeeding five years:

Period ending June 30,
2024	$	636,000
2025		635,000
2026		595,000
2027		533,000
2028		349,000
Thereafter		1,162,000
	$	3,910,000

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)