4. INTANGIBLE AND OTHER ASSETS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE AND OTHER ASSETS |
Intangible and other assets consisted of the following at December 31, 2020 and 2019:
Amortization expense totaled $1,258,000 and $245,000 for the years ended December 31, 2020 and 2019, respectively.
Future amortization expense of intangible and other assets is expected to be as follows:
In September 2019, the Company and a third party entered into an expanded commercial partnership agreement (the “Expanded Agreement”) pursuant to which Super League became the primary consumer-facing brand within the third party’s B2B gaming center software platform. In consideration for the rights granted by the third party to Super League, Super League paid an upfront fee of $340,000 and paid quarterly fees over the term of the Agreement, commencing with the first quarter of 2020, based on predetermined contractual revenue levels. The upfront fee was included as "Licenses" in intangible assets and other assets, net, in the accompanying balance sheet (2019 only) and was being amortized over the initial term of the Expanded Agreement of five years, commencing October 1, 2019.
In April 2020, we amended our arrangement with the third party terminating certain rights and licenses from the prior agreement, as amended, focused on in-person play in gaming centers, and securing other rights and licenses from the third party, focused on online play at home. As a result of the termination of the rights and licenses related to the prior arrangement, the Company accelerated the amortization of the remaining balance related to the prior rights and licenses included in “Licenses” above, totaling $306,000, and certain capitalized internal use software development costs totaling $107,000, which are included in technology platform and infrastructure expense in the accompanying statement of operations for the year ended December 31, 2020.
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