8. Capitalized cost and other long-term assets

Capitalized development costs are amounts paid to vendors that are related to the purchase and construction of microgrid and solar energy facilities. Long-term prepaid expenses and other receivables consist of amounts owed to the Company as well as amounts paid to vendors for services that have yet to be received by the Company. Capitalized development costs and other long-term assets consisted of the following:

Capitalized costs relate to various projects that are at the pre-acquisition phase and capitalizable in the industry by analogy to ASC 970-360-25-2 and 25-3, that the Company expects to start to receive meaningful revenues from as they are commissioned. As the Company completes either a purchase or development of new solar parks or microgrids, these costs are added to the final asset displayed in Property and Equipment. If the Company does not close on the prospective project, these costs are written off to Development Cost on the Consolidated Statement Operations and Comprehensive Loss.

Capitalized cost as of September 30, 2025 were zero.  On September 30, 2025, the Company entered into and closed a Securities Purchase Agreement (“SPA”) and a Joint Venture Operating Agreement (“JVOA”) with Hover Energy LLC (“Hover”), see footnote 6. As part of the transaction, $5.15 million of capitalized costs, consisting of various microgrid projects in the UK and US, previously capitalized under the SAA formed part of the consideration for the transaction. . As of December 31, 2024 consisted of $1.2 million of microgrid development in the US and $3.6 million relating to the Italian projects.

Long-term Prepaid Expenses consist of estimated income tax payments made by Clean Earth prior to the business combination in December 2023 that will used to offset any taxes payable in the future.