Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.21.1
Intangible Assets
3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

6. Intangible Assets

 

Intangible assets consist of the following:

 

 

March 31,

2021

  December 31, 2020
    Cost   Accumulated amortization   Net book value   Net book value
Betting platform software   $ 5,689,965     $ (1,111,484 )   $ 4,578,481     $ 4,673,314  
Licenses     5,799,629       (910,191 )     4,889,438       4,917,733  
Location contracts     1,000,000       (947,260 )     52,740       88,455  
Customer relationships     870,927       (376,804 )     494,123       509,237  
Trademarks     119,094       (52,691 )     66,403       68,843  
Websites     40,000       (40,000 )     —         —    
    $ 13,519,615     $ (3,438,430 )   $ 10,081,185     $ 10,257,582  

 

The Company evaluates intangible assets for impairment on an annual basis during the last month of each year and at an interim date if indications of impairment exist. Intangible asset impairment is determined by comparing the fair value of the asset to its carrying amount with an impairment being recognized only when the fair value is less than carrying value and the impairment is deemed to be permanent in nature.

 

The Company recorded $175,829 and $175,748 in amortization expense for finite-lived assets for the three months ended March 31, 2021 and 2020, respectively.

 

Licenses obtained by the Company in the acquisitions of Multigioco and Rifa include a Gioco a Distanza (“GAD”) online license as well as a Bersani and Monti land-based licenses issued by the Italian gaming regulator to Multigioco and Rifa, respectively, as well as an Austrian Bookmaker License through the acquisition of Ulisse.

 

The estimated amortization expense over the next five year period is as follows:

    Amount
  Remainder of 2021   $ 446,424  
  2022     450,371  
  2023     449,793  
  2024     448,118  
  2025     448,118  
  Total estimated amortization expense   $ 2,242,824