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

Note 7 – Intangible Assets and Goodwill

 

Intangible Assets

 

During the nine months ended September 30, 2021, the Company capitalized $30.1 million for intangible assets. The Company paid approximately $29.7 million for gaming licenses pursuant to market access agreements entered into in order to conduct sports wagering operations in various states, as well as $0.4 million for software and technology. Amortization of the gaming licenses and market access agreements will commence upon completion of the required regulatory approvals and launch of operations in each respective state. As of September 30, 2021, the Company launched its sports betting operation on a limited basis. The amortization expense related to the intangible assets during the nine months ended September 30, 2021, was not material.

 

 

fuboTV Inc.

Notes to the Condensed Consolidated Financial Statements
(Unaudited)

 

The table below summarizes the Company’s intangible assets at September 30, 2021 and December 31, 2020 (in thousands):

 

   Useful  

Weighted

Average

Remaining

   September 30, 2021 
  

Lives

(Years)

  

Life

(Years)

   Intangible Assets   Accumulated Amortization   Net Balance 
Customer relationships  2   0.5   $23,678   $(17,758)  $5,920 
fuboTV tradename  9   7.5    38,197    (6,366)   31,831 
Software and technology  3-9   7.5    182,203    (30,350)   151,853 
Gaming licenses and market access fees  1-20   9.8    29,650    -    29,650 
Total          $273,728   $(54,474)  $219,254 

 

   Useful   

Weighted

Average

Remaining 

  

December 31, 2020

 
  

Lives

(Years)

  

Life

(Years)

   Intangible Assets   Accumulated Amortization   Net Balance 
Customer relationships  2   1.5   $23,678   $(8,880)  $14,798 
fuboTV tradename  9   8.5    38,197    (3,183)   35,014 
Software and technology  9   8.5    181,782    (15,145)   166,637 
Total          $243,657   $(27,208)  $216,449 

 

The intangible assets are being amortized over their respective original useful lives, which range from one to twenty years. The Company recorded amortization expense related to the above intangible assets of approximately $9.1 million and $14.3 million for the three months ended September 30, 2021 and 2020, respectively. The Company recorded amortization expense related to the above intangible assets of approximately $27.3 million for the nine months ended September 30, 2021. The Company recorded amortization expense of approximately $33.8 million for the nine months ended September 30, 2020, including amortization related to impaired intangible assets as described below.

 

The Company performed a valuation of its intangible assets of the Facebank reporting unit as of September 30, 2020. The Company determined that the carrying value of the intangible assets exceeded their fair value. During the three and nine months ended September 30, 2020, the Company recorded an impairment charge of approximately $88.1 million.

 

The estimated future amortization expense associated with intangible assets (excluding gaming licenses and market access fees) is as follows (in thousands):

 

    Future Amortization 
2021   $9,108 
2022    27,552 
2023    24,591 
2024    24,496 
2025    24,437 
Thereafter    79,420 
Total   $189,604 

 

Goodwill

 

The following table is a summary of the changes to goodwill for the nine months ended September 30, 2021 (in thousands):

 

Balance - December 31, 2020  $478,406 
Vigtory acquisition   10,683 
Balance - September 30, 2021  $489,089 

 

 

fuboTV Inc.

Notes to the Condensed Consolidated Financial Statements
(Unaudited)

 

As of December 31, 2020, goodwill includes an accumulated impairment charge of $148.1 million related to the historical Facebank reporting unit.