GOODWILL, INTANGIBLE ASSETS, AND INVESTMENTS

12 Months Ended

Dec. 31, 2024

GOODWILL, INTANGIBLE ASSETS, AND INVESTMENTS

GOODWILL, INTANGIBLE ASSETS, AND INVESTMENTS

NOTE 4 – GOODWILL, INTANGIBLE ASSETS, AND INVESTMENTS

During the Company’s annual assessment of goodwill and intangible assets in December 2024, the Company determined goodwill and intangible assets related to Boston Solar and Box Pure Air were impaired due to negative revisions to the Company’s discounted cash flow analysis resulting from a decline in operations and political headwinds facing the industry as a whole. For the year ended December 31, 2024, the Company recorded impairment expenses related to goodwill and intangible assets of approximately $7,200,000 and $2,461,000, respectively.

Goodwill

The following table presents activity in the Company’s goodwill balance as of December 31, 2024 and 2023:

	Boston Solar			Box Pure Air			Total
Balances at December 31, 2022	$	6,785,416		$	414,151		$	7,199,567
Impairment losses		-			-			-
Balances at December 31, 2023		6,785,416			414,151			7,199,567
Impairment losses		(6,785,416	)		(414,151	)		(7,199,567	)
Balances at December 31, 2024	$	-		$	-		$	-

Intangible Assets

Intangible assets relate to IP/Technology, Tradenames/Trademarks, and non-competed acquired upon the acquisition of Boston Solar during the year ended December 31, 2022.

The following table presents activity in the Company’s intangible assets (excluding goodwill) for the years ending December 31, 2024 and 2023:

	IP/ Technology		Tradename/ Trademarks		Non- Competes		Total
Balances at December 31, 2022:	$	394,984	$	2,801,290	$	94,968	$	3,291,242
Less: Amortization		62,568		300,816		41,064		404,448
Balances at December 31, 2023		332,416		2,500,474		53,904		2,886,794
Less: Amortization		62,568		322,173		41,064		425,805
Less: Impairment losses		269,848		2,178,301		12,840		2,460,989
Balances at December 31, 2024	$	-	$	-	$	-	$	-

At December 31, 2024 and 2023, accumulated amortization related to intangible assets totaled $0 and $755,558, respectively.

Investments

On August 9, 2022, the Company acquired a minority interest, with the right to acquire the remaining interests, of Frontline Power Solutions LLC (“Frontline”), a Multi-state Licensed Energy Services Company (“ESCO”). Frontline is a comprehensive energy service Company with the ability to operate in deregulated markets across the country and provide energy supply agreements to all sizes of commercial, industrial, and institutional properties. The Company signed a Membership Interest Purchase Agreement with Frontline whereby the Company agreed to: (i) make an investment in Frontline for a 13.3% membership interest in exchange for $100,000 of the Company’s shares; (ii) issue a Promissory Note to Frontline for $150,000 ; and (iii) purchase the remaining interest (86.7%) membership interest for a Cash Consideration of $500,000 minus any outstanding principal and interest outstanding under the Promissory Note, subject to certain closing conditions. In the event that certain closing conditions do not occur, the Promissory Note would convert into an additional 6.6% membership interest of Frontline for a total ownership interest of 19.9% for the Company.

During December 2024, the Company determined the investment in and note receivable from Frontline contained no future economic benefit to the Company. Accordingly, a loss on investment totaling $134,376 and an impairment of balances due under the note receivable totaling $216,500 were recorded at December 31, 2024.