Other Assets

9 Months Ended

Sep. 30, 2023

Note 7 - Other Assets

The changes in the Company’s Other Assets for the nine months ended September 30, 2023, were as follows:


	September 30,		December 31,
	2023		2022
Private Corporation Investments	$	450,000	$	450,000
Additions		200,000		—
Total Private Corporation Investments (at cost)		650,000		450,000

Software Development Costs		875,000		750,000
Additions		125,000		125,000
Less: Accumulated Amortization		(597,222)		(375,000)
Software Development Costs, Net		402,778		500,000

Unamortized Common Stock Expense included in Long-Term Prepaid Expenses		429,491		631,143

Total Other Assets	$	1,482,269	$	1,581,143

In 2021, the Company acquired, for a purchase price of $200,000, an ownership interest of 3%, in the form of preferred stock, in a private corporation developing smart glasses software for use by retailers in the stock keeping of inventory, amongst other uses. In the nine months ended September 30, 2023, the Company purchased an additional $100,000 of preferred stock in this corporation through a subsequent round of funding in order to retain a 2% ownership interest.

In June 2023, the Company purchased $100,000 of preferred stock, along with warrants, in a UK-based public company developing new semiconductor materials for displays. The investment represents less than a 1% ownership interest.

During 2020, the Company invested $500,000 in Android operating systems upgrades for its CPU platform used in its M400 and M4000 products. This upgrade was completed and placed into service in the beginning of the fourth quarter of 2020. This capitalized asset is being amortized on a straight-line basis over its expected product life span of thirty-six (36) months, which began on October 1, 2020. In October 2021, the Company invested $250,000 and in the first quarter of 2022 the Company invested an additional $125,000 for further Android operating systems version upgrades to the CPU platform it uses in its M400 and M4000 products. In the nine months ended September 30, 2023, the Company made a final investment of $125,000 to these system upgrades, which were placed into service during the second quarter. These additional upgrades of $500,000 are being amortized on a straight-line basis over thirty-six (36) months.

Total amortization expense related to all software updates, included in cost of sales, for the three months ended September 30, 2023, and 2022 were $83,333 and $63,868, respectively. Total amortization expense related to all software updates for the nine months ended September 30, 2023, and 2022 were $222,222 and $194,751, respectively.