Intangible assets

12 Months Ended

Sep. 30, 2024

Intangible assets

Intangible assets

5.  Intangible assets

The Company’s intangible assets other than goodwill are as follows:

	As of September 30, 2024
	Gross Carrying		Accumulated		Accumulated		Net Carrying
	Value		Impairment		Amortization		Value
License agreement (a)	$	9,140,000	$	—	$	—	$	9,140,000
Customer relationships (a)		13,008,332		—		(1,459,861)		11,548,471
Backlog (b)		6,310,000		—		—		6,310,000
Licensing and certification rights (c)		696,506		(44,400)		(638,285)		13,821
Total	$	29,154,838	$	(44,400)	$	(2,098,146)	$	27,012,292

	As of September 30, 2023
	Gross Carrying		Accumulated		Accumulated		Net Carrying
	Value		Impairment		Amortization		Value
License agreement (a)	$	5,700,000	$	—	$	—	$	5,700,000
Customer relationships (a)		10,740,000		—		(268,500)		10,471,500
Licensing and certification rights (c)		696,506		(44,400)		(638,285)		13,821
Total	$	17,136,506	$	(44,400)	$	(906,785)	$	16,185,321

(a) As part of the September 2024 Honeywell Agreement, the July 2024 Honeywell Asset Acquisition, and the June 2023 Honeywell Agreement transactions, the Company acquired intangible assets related to the license agreements for the license rights to use certain Honeywell intellectual property, backlog and customer relationships. The license agreements have an indefinite life and is not subject to amortization; the customer relationships have an estimated weighted average life of ten years. The Company determined that the intangible assets were not impaired as of September 30, 2024 and September 30, 2023, respectively. As such, no impairment charges have been recorded for the fiscal years ended September 30, 2024 and 2023.

(b) As part of the September 2024 Honeywell Agreement, the Company acquired intangible assets related to backlog with a useful life between four to six years.

(c) The licensing, and certification rights are amortized over a defined number of units. An impairment charge of $44,400 was recorded during the fiscal year ended September 30, 2023. No impairment charges were recorded during the fiscal years ended September 30, 2024 or 2022.

For the fiscal year ended September 30, 2024, license agreement intangible assets included $3.5 million related to the July 2024 Honeywell Asset Acquisition and the September 2024 Honeywell Agreement as well as $0.1 million related to the June 2023 Honeywell Agreement post acquisition adjustments.

For the fiscal year ended September 30, 2024, Customer relationships intangible assets included $1.4 million related to the July 2024 Honeywell Asset Acquisition and the September 2024 Honeywell Agreement as well as $0.9 million related to the June 2023 Honeywell Agreement post acquisition adjustments.

For the fiscal year ended September 30, 2024, Backlog intangible assets included $6.3 million related to the September 2024 Honeywell Agreement.

Intangible asset amortization expense was $1,191,361, $270,627 and $2,126 for the fiscal years ended September 30, 2024, 2023 and 2022, respectively.

The timing of future amortization expense is not determinable for the licensing and certification rights because they are amortized over a defined number of units. As of fiscal year ended September 30, 2024, the weighted average amortization period for amortized intangibles is 5.8 years. The expected future amortization expense related to the customer relationships and backlog as of September 30, 2024 is as follows:

Year		Amortization Expense
2025	$	2,930,643
2026		2,930,643
2027		2,930,643
2028		2,930,643
2029		1,353,143
Thereafter		4,782,756
Total	$	17,858,471