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Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Note 8 - Intangible Assets and Goodwill

Intangible Assets

During the year ended December 31, 2021, the Company capitalized $19.1 million for intangible assets, consisting of $15.0 million for gaming licenses pursuant to market access agreements entered into in order to conduct sports wagering operations in the states of Arizona and Iowa, and $4.1 million for software and technology. Included in the $15.0 million capitalized for gaming licenses, the Company paid $4.4 million for upfront and license fees, and recorded $10.6 million for future minimum royalty payments, with the corresponding liability recorded to accrued expenses and other current liabilities and other long-term liabilities on the accompanying consolidated balance sheet. As of December 31, 2021, the Company paid $0.1 million of royalty payments (See Note 16). Amortization of gaming licenses and market access agreements commence upon completion of the required regulatory approvals and launch of operations in each respective state.

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

Schedule of Intangible Assets

	Useful	Weighted Average Remaining	December 31, 2021
	Lives (Years)	Life (Years)	Intangible Assets		Accumulated Amortization			Net Balance
Customer relationships	2	2.2	$	32,965	$	(21,105	)	$	11,860
Tradenames	2-9	7.2		38,876		(7,455	)		31,421
Software and technology	3-9	8.7		195,852		(35,572	)		160,280
Gaming licenses and market access fees	2-5	4.8		14,951		(326	)		14,625
Total			$	282,644	$	(64,458	)	$	218,186

		Weighted Average	December 31, 2020
	Useful Lives (Years)	Remaining Life (Years)	Intangible Assets		Intangible Asset Impairment			Accumulated Amortization			Net Balance
Human animation technologies	5	-	$	123,436	$	(85,281	)	$	(38,155	)	$	-
Trademark and trade names	5	-		7,746		(5,294	)		(2,452	)		-
Animation and visual effects technologies	4	-		6,016		(4,024	)		(1,992	)		-
Digital asset library	4	-		7,536		(5,131	)		(2,405	)		-
Intellectual property	7	-		828		(574	)		(254	)		-
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			$	389,219	$	(100,304	)	$	(72,466	)	$	216,449

The intangible assets are being amortized over their respective original useful lives, which range from two to nine years. The Company recorded amortization expense of $36.9 million, $43.6 million, and $20.8 million for the years ended December 31, 2021, 2020 and 2019 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 and recorded an impairment charge of $100.3 million during the year ended December 31, 2020.

During the year ended December 31, 2019 the Company determined, that because of the continuing losses and poor financial condition of Nexway AG, the intangible assets acquired in the acquisition of Nexway AG were required to be impaired in full and recorded an impairment charge of $8.6 million.

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

Future Amortization

2022 38,599

2023 35,129

2024 30,184

2025 28,907

2026 28,675

Thereafter 56,692

Total $ 218,186

Prepaid Market Access Agreements

During the year ended December 31, 2021, the Company paid $39.8 million for gaming licenses pursuant to market access agreements which had not yet commenced operations as of December 31, 2021. The $39.8 million is included in other non-current assets on the accompanying consolidated balance sheet as of December 31, 2021.

Goodwill

The following table is a summary of the changes to goodwill for the years ended December 31, 2021 and 2020 (in thousands):

Schedule of Goodwill

	December 31,
	2021		2020
Beginning balance	$	478,406	$	227,763
Deconsolidation of Nexway		-		(51,168	)
Acquisition of fuboTV		-		478,406
Less: Sale of Facebank AG		-		(28,541	)
Impairment expense		-		(148,054	)
Vigtory acquisition		10,683		-
Molotov acquisition		128,468		-
Edisn acquisition		12,501
Foreign currency translation		211		-
Ending balance	$	630,269	$	478,406

As of December 31, 2021 and 2020, goodwill includes an accumulated impairment charge of $148.1 million related to the historical Facebank reporting unit.