Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Intangible and Other Assets

v3.22.2.2
Note 3 - Intangible and Other Assets
6 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]

3.

INTANGIBLE AND OTHER ASSETS

 

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

 

   

June 30,

   

December 31,

 
   

2022

   

2021

 
                 

Partner and customer relationships

  $ 13,376,000     $ 13,376,000  

Capitalized software development costs

    4,721,000       4,339,000  
Capitalized third-party game property costs     500,000       -  

Developed technology

    7,880,000       7,880,000  

Influencers/content creators

    2,559,000       2,559,000  

Trade name

    189,000       189,000  

Domain

    68,000       68,000  

Copyrights and other

    1,328,000       1,141,000  
      30,621,000       29,552,000  

Less: accumulated amortization

    (7,957,000

)

    (5,309,000

)

Intangible and other assets, net

  $ 22,664,000     $ 24,243,000  

 

Amortization expense for the three and six months ended June 30, 2022 totaled $1,300,000 and $2,601,000, respectively. Amortization expense for the three and six months ended June 30, 2021 totaled $302,000 and $795,000, respectively. Amortization expense included in cost of revenue for the three and six months ended June 30, 2022 totaled $27,000 and $31,000, respectively. Amortization expense included in cost of revenue for the three and six months ended June 30, 2021 totaled $13,000 and $16,000, respectively.

 

During the three months ended June 30, 2022, the Company purchased Anime Battlegrounds X, one of the highest rated games on Roblox, from a third-party game developer. Total purchase price of $500,000 was capitalized and amortized to cost of revenue over the estimated useful life of 5 years.

 

The Company expects to record amortization of intangible assets for the year ending December 31, 2022 and future fiscal years as follows:

 

For the years ending December 31,

       

2022 Remaining

  $ 2,642,000  

2023

    5,028,000  

2024

    4,626,000  

2025

    4,060,000  

2026

    3,013,000  

Thereafter

    3,295,000  
    $ 22,664,000