The following transactions involving intangible assets of Pharoah Corporation occurred on or near December 31, 2025.

1. Pharoah paid Grand Company $360,000 for the exclusive right to market a particular product, using the Grand name and logo in promotional material. The franchise runs for as long as Pharoah is in business.
2. Pharoah spent $732,000 developing a new manufacturing process. It has applied for a patent, and it believes that its application will be successful.
3. In January 2026, Pharoah's application for a patent (#2 above) was granted. Legal and registration costs incurred were $247,800. The patent runs for 20 years. The manufacturing process will be useful to Pharoah for 10 years.
4. Pharoah incurred $163,200 in successfully defending one of its patents in an infringement suit. The patent expires during December 2029.
5. Pharoah incurred $441,600 in an unsuccessful patent defense. As a result of the adverse verdict, the patent, with a remaining unamortized cost of $241,920, is deemed worthless.
6. Pharoah paid Sneed Laboratories $126,880 for research and development work performed by Sneed under contract for Pharoah. The benefits are expected to last six years.