XML 25 R15.htm IDEA: XBRL DOCUMENT

PREPAID EXPENSES - RELATED PARTY

3 Months Ended

Mar. 31, 2023

NOTE 8 – PREPAID EXPENSES - RELATED PARTY

On March 10, 2023, the Company amended its exclusive software license agreement with SDE relating to the ARK franchise. For DLC’s, the Company plans to release during the term of the agreement, the Company will now have the option to pay the $5.0 million DLC payment in whole or in part, when paid in advance; or in full, upon the DLC release. No payment for any DLC under this agreement will exceed $5.0 million.

During the three months ended March 31, 2023, the Company prepaid $2,500,000 for exclusive license rights for an ARK 1 DLC to SDE. During the year ended December 31, 2022, the Company prepaid $5,000,000 for exclusive license rights to ARK 2 to SDE. Prepaid expenses — related party consisted of the following as of March 31, 2023 and December 31, 2022:


	2023		2022
Prepaid royalties	$	582,500	$	582,500
Prepaid licenses		7,500,000		5,000,000
Prepaid expenses - related party, ending balance		8,082,500		5,582,500
Less: short-term portion		(2,500,000)		—
Total prepaid expenses - related party, long-term	$	5,582,500	$	5,582,500