Note 3 - Intangible and Other Assets |
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Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets Disclosure [Text Block] |
Intangible and other assets consisted of the following for the periods presented:
Amortization expense for the three and nine months ended September 30, 2022 totaled $1,712,000 and $4,313,000, respectively. Amortization expense for the three and nine months ended September 30, 2021 totaled $1,110,000 and $1,857,000, respectively. Amortization expense included in cost of revenue for the three and nine months ended September 30, 2022 totaled $29,000 and $60,000, respectively. Amortization expense included in cost of revenue for the three and nine months ended September 30, 2021 totaled $33,000 and $49,000, respectively.
During the nine months ended September 30, 2022, the Company purchased Anime Battlegrounds X, a highly rated game on Roblox, from a third-party game developer. The total purchase price of $500,000 was capitalized and is being amortized to cost of revenue over the estimated useful life of 5 years.
During the three months ended September 30, 2022, the Company rebranded certain products acquired in connection with the acquisition of Mobcrush. As a result, the Company recorded a write down of trademark related intangible assets acquired in connection with the acquisition of Mobcrush totaling $423,000, which is included as a component of amortization expense in general and administrative expense in the accompanying condensed consolidated statement of operations for the three and nine months ended September 30, 2022.
The Company expects to record amortization of intangible assets for the year ending December 31, 2022 and future fiscal years as follows:
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