Quarterly report pursuant to Section 13 or 15(d)

4. INTANGIBLE AND OTHER ASSETS

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4. INTANGIBLE AND OTHER ASSETS
9 Months Ended
Sep. 30, 2019
Finite-Lived Intangible Assets, Net [Abstract]  
INTANGIBLE AND OTHER ASSETS

Intangible and other assets consisted of the following for the periods presented:

   

September 30,

2019

   

December 31,

2018

 
    (Unaudited)        
Capitalized software development costs   $ 2,122,000     $ 1,281,000  
Licenses     340,000       -  
Domain     70,000       68,000  
Trade name (Note 5)     189,000       -  
Copyrights and other     260,000       126,000  
      2,981,000       1,475,000  
Less: accumulated amortization     (1,094,000 )     (768,000 )
Intangible and other assets, net   $ 1,887,000     $ 707,000  

 

Amortization expense totaled $134,000 and $326,000 for the three and nine months ended September 30, 2019, respectively. Amortization expense totaled $64,000 and $171,000 for the three and nine months ended September 30, 2018, respectively. Future amortization expense of intangible and other assets is expected to be as follows:

 

For the years ending December 31:

 

Remainder of 2019   $ 161,000  
2020     625,000  
2021     557,000  
2022     252,000  
2023     143,000  
Thereafter     149,000  
Total   $ 1,887,000  

 

On September 23, 2019, the Company and ggCircuit, LLC (“ggCircuit”), an esports services company that provides gaming center management software solutions and other esports offerings, entered into an expanded commercial partnership agreement (“Expanded Agreement”) pursuant to which Super League will become the primary consumer-facing brand within ggCircuit’s B2B gaming center software platform. ggCircuit’s software platform is a B2B platform and B2C application created and owned by ggCircuit, which is licensed and distributed to owners and operators of video gaming centers throughout the world.

 

In consideration for the rights granted by ggCircuit to Super League, Super League will pay an upfront fee of $340,000 and quarterly fees over the term of the Agreement ranging from $0 to $150,000, based on predetermined contractual revenue levels. Pursuant to the terms and conditions of the Expanded Agreement, revenues generated in connection with applicable activities under the Expanded Agreement will be shared between Super League and ggCircuit based on contractual revenue sharing percentages. The initial term of the Expanded Agreement commences on October 1, 2019, the effective date and concludes on the fifth anniversary of the effective date, subject to certain automatic renewal provisions. The upfront fee is included as “Licenses” in intangible assets and other assets, net (and accrued liabilities) in the accompanying balance sheet and will be amortized over the initial term of the Expanded Agreement of five years, commencing October 1, 2019.