Quarterly report pursuant to Section 13 or 15(d)

7. Intangible Assets

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7. Intangible Assets
3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
7. Intangible Assets

7. Intangible Assets

 

Intangible assets consist of the following: 

 

                                 
   

March 31,

2022

  December 31, 2021
    Cost   Accumulated amortization   Net book value   Net book value
Betting platform software   $ 6,149,537     $ (1,506,134 )   $ 4,643,403     $ 4,745,895  
Licenses     964,081       (961,168 )     2,913       3,413  
Location contracts     1,000,000       (1,000,000 )                  
Customer relationships     8,145,927       (723,551 )     7,422,376       7,538,533  
Trademarks     1,537,599       (161,454 )     1,376,145       1,413,887  
Non-compete agreements     2,096,000       (371,167 )     1,724,833       1,855,833  
Websites     40,000       (40,000 )              —    
    $ 19,933,144     $ (4,763,474 )   $ 15,169,670     $ 15,557,561  

 

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 $387,618 and $175,829 in amortization expense for finite-lived assets for the three months ended March 31, 2022 and 2021, 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.

 

The Company previously had an Austrian Bookmaker License through the acquisition of Ulisse, which was valued at $9,727,912 which was fully impaired and terminated on December 31, 2021.

 

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

 

Amortization Expense   Amount
     
Remainder of 2022   $ 1,162,854  
2023     1,550,437  
2024     1,548,788  
2025     1,308,621  
2026     1,024,789  
Total estimated amortization expense   $ 6,595,489