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
9 Months Ended
Sep. 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:

 

   

September 30,

   

December 31,

 
   

2022

   

2021

 
                 

Partner and customer relationships

  $ 13,376,000     $ 13,376,000  

Capitalized software development costs

    5,106,000       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

    739,000       1,141,000  
      30,417,000       29,552,000  

Less: accumulated amortization

    (9,206,000

)

    (5,309,000

)

Intangible and other assets, net

  $ 21,211,000     $ 24,243,000  

 

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:

 

For the years ending December 31,

       

2022 Remaining

  $ 1,315,000  

2023

    5,051,000  

2024

    4,650,000  

2025

    4,050,000  

2026

    2,947,000  

Thereafter

    3,198,000  
    $ 21,211,000