Goodwill

12 Months Ended

Dec. 31, 2024

Goodwill [Abstract]

NOTE 11 — GOODWILL

The following table presents the change in the carrying amount of Goodwill:

		Social media				Sports streaming				Total
Balance at beginning of year:
Goodwill		$	—			$	—			$	—
Accumulated impairment losses			—				—				—
			—				—				—

Change in carrying amounts during the year
Addition			1,000,002				5,776				1,005,778
Impairment losses			(1,000,002	)			(5,776	)			(1,005,778	)
			—				—				—

Balance at end of year:
Goodwill			1,000,002				5,776				1,005,778
Accumulated impairment losses			(1,000,002	)			(5,776	)			(1,005,778	)
		$	—			$	—			$	—

The Company consummated the Merger Transaction pursuant to the Merger Agreement on October 15, 2024, whereby the Company acquired all the equity interest of Triller Corp. (see Note 4). This Merger Transaction gave rise to the Company recognizing approximately $1,005.8 million in goodwill as the difference between the consideration of approximately $785.7 million and the net liabilities of approximately $220.1 million of Triller Corp. as of the acquisition date. Goodwill is assigned to each of the two reporting units — social media and sports streaming. The carrying value of the reporting unit is determined by assigning the assets and liabilities, including the existing goodwill, to the reporting unit.

As of December 31, 2024, the Company performed a qualitative and quantitative annual assessment for goodwill impairment. Based on its qualitative analysis, which considered the reporting unit results, projections and industry specific considerations, the Company performed a further revision of the estimates of the fair value of both reporting units. The Company estimates fair value using a discounted cash flow model, which calculates the present value of future expected cash flows of its reporting units with a market-based discount rate. As part of this analysis, the Company also considered the potential impacts of the sensitivity of estimates and assumptions. The material assumptions used for the goodwill annual impairment test were forecasted revenue growth rates, forecasted cash flows from operations, weighted average cost of capital rate and long-term growth rate that reflect the risk inherent in the future cash flows. The Company considered historical rates and current market conditions when determining the discount and growth rates to use in its analyses. The Company applies assumptions that marketplace participants would consider in determining the fair value of its reporting unit.

As a result of the impairment assessment, the Company concluded it is uncertain whether it will generate economic benefit in the foreseeable future and that the fair value of each reporting unit is below its carrying value, primarily caused by adverse macroeconomic conditions affecting the Company. The Company recorded impairment loss on goodwill of approximately $1,005.8 million for the fiscal year ended December 31, 2024.