Quarterly report pursuant to Section 13 or 15(d)

8. Intangible Assets

v3.23.1
8. Intangible Assets
3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
8. Intangible Assets

8. Intangible Assets

 

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.

 

Intangible assets consist of the following:

 

                                 
   

March 31,

2023

  December 31, 2022
    Cost   Accumulated amortization   Net book value   Net book value
Betting platform software   $ 9,144,884     $ (1,980,887 )   $ 7,163,997     $ 6,776,486  
Licenses     974,984       (965,034 )     9,950       11,864  
Location contracts     1,000,000       (1,000,000 )                  
Customer relationships     3,395,927       (1,188,179 )     2,207,748       2,323,905  
Trademarks     1,537,426       (311,609 )     1,225,817       1,263,269  
Non-compete agreements     764,167       (764,167 )                  
Websites     40,000       (40,000 )              —    
    $ 16,857,388     $ (6,249,876 )   $ 10,607,512     $ 10,375,524  

 

The Company recorded $285,008 and $387,618 in amortization expense for finite-lived assets for the three months ended March 31, 2023 and 2022, respectively.

 

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

Amortization Expense   Amount
  Remainder of 2023     $ 941,514  
  2024       1,250,821  
  2025       1,247,075  
  2026       1,247,075  
  2027       1,239,075  
  Total estimated amortization expense     $ 5,925,560  

 

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.