Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2022

Intangible Assets and Goodwill [Abstract]

Intangible Assets and Goodwill

Note 4 – Intangible Assets and Goodwill

As a result of the merger with QPhoton, the Company has the following amounts related to intangible assets:

	Intangible Assets as of:
Amortizable Intangible Assets	December 31,					Amortizable
	2022			2021		Life
Customer relationships	$	10,000,000		$	-	3 years
Non-compete agreement with founder		500,000			-	3 years
Website domain name and trademark		1,000,000			-	5 years
Employment agreements		2,250,000			-	2 years
Technology and licensed patents		11,722,220			-	10 years
Less: accumulated amortization		(3,248,495	)		-
Net intangible assets	$	22,223,725		$	-

The aggregate amortization expense of the Company’s intangible assets for the years ended December 31, 2022 and 2021 was $ 3,248,495 and $0, respectively. The Company expects future amortization expense to be the following:

	Amortization
2023	$	5,997,222
2024		5,387,847
2025		2,976,389
2026		1,372,222
2027		1,263,889
Thereafter (2028-2032)		5,226,156
Total	$	22,223,725

The Company recorded goodwill resulting from the merger with QPhoton, calculated as the difference between the total purchase price and the value of tangible and intangible assets acquired less the liabilities assumed. The Company recorded goodwill of $59,125,773.38 resulting from the QPhoton merger. The following table provides a summary of the changes in goodwill for the years ended December 31, 2022 and 2021:

	December 31,
	2022		2021
Goodwill, at beginning of year	$	-	$	-
Goodwill additions		59,125,773		-
Goodwill deductions or impairment		-		-
Goodwill, at end of year	$	59,125,773	$	-

The Company tested the intangible assets and goodwill for impairment as of December 31, 2022 and concluded there was no impairment of intangible assets or goodwill at that time.