Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Intangible and Other Assets

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Note 3 - Intangible and Other Assets
6 Months Ended
Jun. 30, 2023
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,

 
   

2023

   

2022

 
                 

Partner and customer relationships

  $ 13,566,000     $ 13,376,000  

Capitalized software development costs

    5,745,000       5,262,000  

Capitalized third-party game property costs

    500,000       500,000  

Developed technology

    5,062,000       7,880,000  

Influencers/content creators

    2,559,000       2,559,000  

Trade name

    209,000       189,000  

Domain

    68,000       68,000  

Copyrights and other

    820,000       760,000  
      28,529,000       30,594,000  

Less: accumulated amortization

    (12,377,000

)

    (10,528,000

)

Intangible and other assets, net

  $ 16,152,000     $ 20,066,000  

 

Intangible assets at June 30, 2023 reflected in the table above includes the intangible assets acquired in connection with the Melon Acquisition totaling $510,000, as described at Note 4 below.

 

Amortization expense included in operating expense for the three and six months ended June 30, 2023 totaled $1,316,000 and $2,604,000, respectively. Amortization expense included in operating expense for the three and six months ended June 30, 2022 totaled $1,300,000 and $2,601,000, respectively. Amortization expense included in cost of revenue for the three and six months ended June 30, 2023 totaled $5,000 and $31,000, 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.

 

During the three months ended June 30, 2023, the Company assigned the intangible assets originally acquired in connection with the Company’s acquisition of Bannerfy in fiscal year 2021, to the original sellers. The assets were disposed of in connection with management’s review of operations and decision to allocate resources elsewhere. As a result, the Company recorded a write-off of net developed technology related intangible assets acquired in connection with the acquisition of Bannerfy totaling $2,284,000, which is included in “Loss on intangible asset disposal” in the accompanying condensed consolidated statement of operations for the three and six months ended June 30, 2023. Developed technology related intangibles asset acquisition costs were reduced $3,069,000, and related accumulated depreciation was reduced $785,000, in connection with the disposal of the intangible asset.

 

The Company expects to record amortization of intangible assets for the year ending December 31, 2023 and future fiscal years as follows:

 

For the years ending December 31,

       

2023 remaining

    2,432,000  

2024

    4,538,000  

2025

    3,915,000  

2026

    2,653,000  

2027

    1,807,000  

Thereafter

    807,000  
    $ 16,152,000