INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 7 — INTANGIBLE ASSETS

The Company continuously monitors operating results, events, and circumstances that may indicate potential impairment of intangible assets. Management concluded that no triggering events occurred during the three months ended on March 31, 2024.

The following table illustrates finite intangible assets as of March 31, 2024:

	Proprietary Technology					Patents and Licenses					Trade Names & Technology					Customer Relationships
			Accumulated					Accumulated					Accumulated					Accumulated
	Cost		Amortization			Cost		Amortization			Cost		Amortization			Cost		Amortization			Net
Balance, January 1, 2024	$	2,132,000	$	(1,408,000	)	$	12,378,000	$	(12,378,000	)	$	2,251,000	$	(1,327,000	)	$	5,591,000	$	(3,373,000	)	$	3,866,000
Amortization		—		(148,000	)		—		—			—		(34,000	)		—		(105,000	)		(287,000	)
Balance, March 31, 2024	$	2,132,000	$	(1,556,000	)	$	12,378,000	$	(12,378,000	)	$	2,251,000	$	(1,361,000	)	$	5,591,000	$	(3,478,000	)	$	3,579,000

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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. Mobile Viewpoint (“MVP”) uses wireless multiplex transmitters and artificial intelligence 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. Integrated Microwave Technology (“IMT”), Vislink, MVP, and BMS assets acquisitions contributed to developing these intangible assets, including trade names, technology, and customer lists.

The Company has recognized net capitalized intangible costs as follows:

	March 31, 2024		December 31, 2023
Proprietary Technology	$	888,000	$	726,000
Trade Names and Technology		2,112,000		922,000
Customer Relationships		579,000		2,218,000
	$	3,579,000	$	3,866,000

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

	Three Months Ended
	March 31,
	2024		2023
Proprietary Technology	$	148,000	$	146,000
Trade Names and Technology		34,000		35,000
Customer Relationships		105,000		63,000
	$	287,000	$	244,000

The weighted average remaining life of the amortization of the Company’s intangible assets is approximately 4.9 years as of March 31, 2024. The following table represents the estimated amortization expense for total intangible assets for the succeeding five years:

Period ending March 31,
2025	$	769,000
2026		752,000
2027		537,000
2028		288,000
2029		288,000
Thereafter		945,000
	$	3,579,000

The Company continuously monitors intangible assets for potential impairments based on operating results, events, and circumstances. As of March 31, 2024, management identified no triggering events.

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS