Intangible Asset

12 Months Ended

Dec. 31, 2024

NOTE 5 – INTANGIBLE ASSET

On December 31, 2024 and 2023, intangible asset consisted of the following:

	Useful life	December 31, 2024			December 31, 2023
License	5 years	$	150,000		$	-
Less: accumulated amortization			(25,000	)		-
		$	125,000		$	-

On August 29, 2022, the Company entered into a Software and Patent License Agreement (the “License Agreement”) with Columbia University (“Columbia”), whereby the Company obtained a license from Columbia with respect to software and intellectual property rights and patents. In connection with the License Agreement, Columbia granted to the Company a royalty-bearing, exclusive, worldwide, non-transferable license under the License Agreement, to discover, develop, manufacture, have made, use, sell, offer to sell, have sold, import, export, distribute, rent or lease licensed products and copy, use, modify, and create derivative works from licensed software and technical information during the term of the License Agreement. On August 9, 2023 and effective August 1, 2023, the Company and Columbia University agreed to the termination of the License Agreement. Based on management’s analysis, the Company determined the Licenses were not commercially viable in the current competitive landscape. The termination of the Agreement will not have any impact on the Company’s future revenues. Accordingly, as of June 30, 2023, the Company wrote off the remaining unamortized book value of the intangible asset of $52,363, and during the year ended December 31, 2023, the Company recorded an impairment loss of $52,363, which was included in operating expenses.

On March 4, 2024, the Company entered into a Purchase Agreement with a third party to acquire certain technology and computer code. The Purchase Agreement grants the Company a perpetual, worldwide, non-exclusive, non-transferable, royalty free, fully paid license to (a) modify and create derivative works from certain technology and related codebase including, but not limited to, “Habit-tracking Module,” “Administrative Panel,” and related computer code. The aggregate purchase price was $150,000 and is included in intangible assets on the accompanying consolidated balance sheet. The purchase price of $150,000 was payable in four monthly installments of $37,500, beginning on March 15, 2024.

For the years ended December 31, 2024 and 2023, amortization of intangible assets amounted to $25,000 and $6,284, respectively, which is based on an estimated useful life of 5 years and includes amortization expense related to the License Agreement prior to the impairment loss as discussed above.

Amortization of the intangible asset attributable to future periods is as follows:

Year ending December 31:	Amount
2025	$	30,000
2026		30,000
2027		30,000
2028		30,000
2029		5,000
	$	125,000

GAXOS.AI INC. 10-K