Capitalized Software and Intangible Assets

6 Months Ended

Jun. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Capitalized Software and Intangible Assets

Note 5. Capitalized Software and Intangible Assets

Non-current assets consist of the following at June 30, 2025 and December 31, 2024:

	Estimated Useful Life (in years)		June 30, 2025			December 31, 2024
Capitalized software		3.0	$	223,390		$	223,390
Accumulated amortization				(223,390	)		(204,774	)
Capitalized software, net			$	-		$	18,616
Intangible Assets:
U.S. Method Patent		13.4	$	967,500		$	967,500
Web Domain		N/A		161,250			161,250
Trademark		N/A		483,750			483,750
Total Intangible assets			$	1,612,500		$	1,612,500
Accumulated amortization				(288,447	)		(252,391	)
Intangible assets, net			$	1,324,053		$	1,360,109

Capitalized software represents the development costs for the Company’s internal-use QHSLab platform software. The Company completed testing of its QHSLab platform software application at the end of the first quarter of 2022 and began to amortize the capitalized expenses on a straight-line basis over the useful life of the software. Amortization related to the QHSLab platform was $0 and $18,616 for the three-month periods ended June 30, 2025 and 2024, respectively, and is recorded within cost of revenue on the Company’s condensed consolidated statements of operations. Amortization was $18,616 and $37,231 for the six-month periods ended June 30, 2025 and 2024, respectively. There were no impairments recognized during the six-month period ended June 30, 2025 and the year ended December 31, 2024.

The intangible assets represent the value the Company paid to acquire the trademark “AllergiEnd”, the web domain “AllergiEnd.com” along with the U.S. Method Patent registration relating to the allergy testing kit and related materials the Company distributes to physician clients. The Company acquired the intangible assets from MedScience Research Group, Inc. (“MedScience”) as of June 23, 2021 for total consideration of $1,612,500 which was financed through a combination of restricted stock and a promissory note. The allocation of the purchase price to each of these assets was determined based on ASC 805-50-30, Business Combination, Related Issues, Initial Measurement. The assets are being amortized over their useful lives beginning July 1, 2021. The Trademark and Web Domain are determined to have an indefinite life and will be tested annually for impairment in accordance with ASC 350-30-35, Intangibles, General Intangibles Other Than Goodwill. There was $18,028 of amortization during each of the three-month periods ended June 30, 2025 and 2024 and $36,056 of amortization expense during each of the six-month periods ended June 30, 2025 and 2024.

The Company evaluates intangible assets with infinite lives for impairment at least annually and evaluates intangible assets with finite lives when events or circumstances indicate an impairment may exist. No impairments or changes in useful lives were recognized during the six-month period ended June 30, 2025 and the year ended December 31, 2024.