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INTANGIBLE ASSETS | 9 Months Ended
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Sep. 30, 2022
INTANGIBLE ASSETS |
INTANGIBLE ASSETS | NOTE 11 – INTANGIBLE ASSETS Intangible assets of trademark and technology consist of game license software underlying intellectual property rights, game trademark name, logo, and other branding items. The Company amortizes the intangible assets over its useful life. During 2021, the Company impaired the Atlas license right due to delay in launching the game in several platforms. The Company recognized $16,325,000 as impairment loss during the year ended December 31, 2021 and the impairment was calculated based on revision to the discounted cash flow valuation using a 10% discount rate, which reflected the launch delay’s and decreased future cash flow. The following tables set all the intangible assets presented on the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2022
​ |  | Gross |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | Weighted
​ | ​ | Carrying | ​ | Accumulated | ​ | Impairment | ​ | Net Book | ​ | Average
​ | ​ | Amount | ​ | Amortization | ​ | Loss | ​ | Value | ​ | Useful Life
License rights from related parties | ​ | $ | 136,665,000 | ​ | $ | (133,429,962) | ​ | $ | — | ​ | $ | 3,235,038 |  | 3 - 5 years
License rights | ​ | $ | 3,000,000 | ​ | $ | (3,000,000) | ​ | $ | — | ​ | $ | — |  | 5 years
Intangible assets - other: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  |  |
Software | ​ | $ | 51,784 | ​ | $ | (51,784) | ​ | $ | — | ​ | $ | — |  | 3 years
Trademark | ​ |  | 10,745 | ​ |  | (6,031) | ​ |  | — | ​ |  | 4,714 |  | 15 years
In-progress patent | ​ |  | 270,886 | ​ |  | — | ​ |  | — | ​ |  | 270,886 |  |
Total: | ​ | $ | 333,415 | ​ | $ | (57,815) | ​ | $ | — | ​ | $ | 275,600 |  |
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2021
​ |  | Gross |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | Weighted
​ | ​ | Carrying | ​ | Accumulated | ​ | Impairment | ​ | Net Book | ​ | Average
​ | ​ | Amount | ​ | Amortization | ​ | Loss | ​ | Value | ​ | Useful Life
License rights from related parties | ​ | $ | 152,990,000 | ​ | $ | (127,877,024) | ​ | $ | (16,325,000) | ​ | $ | 8,787,976 |  | 3- 5 years
License rights | ​ | $ | 3,000,000 | ​ | $ | (2,750,000) | ​ | $ | — | ​ | $ | 250,000 |  | 5 years
Intangible assets - other: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  |  |
Software | ​ | $ | 51,784 | ​ | $ | (50,908) | ​ | $ | — | ​ | $ | 876 |  | 3 years
Trademark | ​ |  | 10,745 | ​ |  | (5,359) | ​ |  | — | ​ |  | 5,386 |  | 15 years
In-progress patent | ​ |  | 270,886 | ​ |  | — | ​ |  | — | ​ |  | 270,886 |  |
Total: | ​ | $ | 333,415 | ​ | $ | (56,267) | ​ | $ | — | ​ | $ | 277,148 |  |
​ Amortization expense was $1,851,203 and $4,139,551 for the three months ended September 30, 2022 and 2021, respectively. Amortization expense was $5,803,610 and $11,131,342 for the nine months ended September 30, 2022 and 2021, respectively. These amounts are included in cost of revenues in the accompanying condensed consolidated statements of operations and comprehensive income (loss). Future amortization expense of intangible assets is as follows: ​
​ | ​ | ​ | ​
Years ending December 31, |  | Amount
Remainder of 2022 | ​ | $ | 1,851,205
2023 | ​ |  | 1,384,927
2024 | ​ |  | 804
2025 | ​ |  | 803
2026 | ​ |  | 743
Thereafter | ​ |  | 272,156
​ | ​ | $ | 3,510,638
​

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -URI https://asc.fasb.org/subtopic&trid=2144471 + Details
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