Intangible Assets

12 Months Ended

Dec. 31, 2022

Intangible Assets [Abstract]

INTANGIBLE ASSETS

9. INTANGIBLE ASSETS

	Development Costs			Uniden License			E-Wave License			Clear RF Patent + Supplier relationship		Total
Cost:
Balance at December 31, 2020	$	10,540,477		$	116,543		$	1,319,184		$	-	$	11,976,204
Additions		2,769,679			-			-			522,637		3,292,316
Foreign exchange		5,370			183			2,073			-		7,626
Balance at December 31, 2021	$	13,315,526		$	116,726		$	1,321,257		$	522,637	$	15,276,146
Additions		3,405,862			-			-			-		3,405,862
Foreign exchange		(11,590	)		-			-			-		(11,590	)
Balance at December 31, 2022	$	16,709,798		$	116,726		$	1,321,257		$	522,637	$	18,670,418
Accumulated Amortization:
Balance at December 31, 2020	$	4,283,382		$	97,460		$	1,046,244		$	-	$	5,427,086
Additions		469,789			19,418			278,567			29,189		796,963
Impairment		4,339,366			-			-			399,920		4,739,286
Foreign exchange		(34,020	)		(152	)		(3,554	)		-		(37,726	)
Balance at December 31, 2021	$	9,058,517		$	116,726		$	1,321,257		$	429,109	$	10,925,609
Additions		668,566			-			-			93,528		762,094
Foreign exchange		(4,816	)		-			-			-		(4,816	)
Balance at December 31, 2022	$	9,722,267		$	116,726		$	1,321,257		$	522,637	$	11,682,887
Net Book Value:
Balance at December 31, 2021	$	4,257,009		$	-		$	-		$	93,528	$	4,350,537
Balance at December 31, 2022	$	6,987,531		$	-		$	-		$	-	$	6,987,531

Development Costs

Development costs are internally generated and are capitalized in accordance with the IAS 38, Intangible Assets. On a quarterly basis, the Company assesses capitalized development costs for indicators of impairment or when facts or circumstances suggest the carrying amount may exceed its recoverable amount.

The Company engaged a third-party evaluator to determine the recoverable amount of the intangible assets at December 31, 2022 based on the replacement cost method. Based on the results of their, management determined that the recoverable amount was equal to, or in excess of the carrying amount in December 31, 2022. However, for the year ended December 31, 2021 the recoverable amount was less than the carrying amount which resulted in a total impairment at December 31, 2021 of $4,739,286 as follows: rugged device impairment of $4,339,366 and $399,920 impairment to a supplier relationship.

During the twelve months ended December 31, 2022 the Company incurred $339,828 (December 31, 2021-$846,242) in product development costs which did not satisfy the criteria for capitalization and were recorded in profit and loss.

Uniden License

During 2016, the Company acquired a license agreement from Uniden America Corporation (“Uniden”). The agreement provides for the Company to use the trademark “Uniden”, along with associated designs and trade dress to distribute, market and sell its cellular signal booster and accessories during its term. The agreement is until December 31, 2031 and is subject to certain minimum royalties. The license agreement is amortized on a straight-line basis over its five-year term and was fully amortized on December 31, 2021.

Clear RF Patent and Supplier Relationship:

As part of the acquisition of ClearRF on March 30, 2021, as described in Note 4 above, the Company purchased two patents valued at $122,717 plus a supplier relationship valued at $399,920. These intangible assets were recorded at cost and were initially scheduled to be amortized on a straight-line basis over their estimated useful life of four years with no residual value.

On December 31, 2021, the Company had an independent impairment in value report prepared for the intangibles. Management, based on this report, impaired the full amount of the supplier relationship of $399,920 because of a worldwide component and supply chain shortfall.