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PREPAID EXPENSES - RELATED PARTY
 9 Months Ended
Sep. 30, 2023
Prepaid Expenses - Related Party  
PREPAID EXPENSES - RELATED PARTY

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 nine months ended September 30, 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 September 30, 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