Quarterly report pursuant to Section 13 or 15(d)

7. Intangible Assets

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7. Intangible Assets
9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
7. Intangible Assets

7. Intangible Assets

 

Intangible assets consist of the following: 

                               
 

September 30,

2021

  December 31, 2020
  Cost   Accumulated amortization   Net book value   Net book value
Betting platform software $ 5,689,965     $ (1,301,150 )   $ 4,388,815     $ 4,673,314  
Licenses   5,797,954       (955,554 )     4,842,400       4,917,733  
Location contracts   1,000,000       (1,000,000 )           88,455  
Customer relationships   8,145,927       (491,237 )     7,654,690       509,237  
Trademarks   1,537,972       (86,396 )     1,451,576       68,843  
Non-compete agreements   2,096,000       (109,167 )     1,986,833        
Websites   40,000       (40,000 )            
  $ 24,307,818     $ (3,983,504 )   $ 20,324,314     $ 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 $722,843 and $527,011 in amortization expense for finite-lived assets for the nine months ended September 30, 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:

 

Amortization Expense   Amount  
  Remainder of 2021 $ 390,124  
  2022   1,520,415  
  2023   1,519,836  
  2024   1,518,174  
  2025   1,278,007  
  2026   994,173  
  Total estimated amortization expense $ 7,220,729