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Digital Tokens

12 Months Ended

Dec. 31, 2022

4.	Digital Tokens

Digital tokens, consist of Props tokens received in connection with the YouNow Agreement. Given that there is limited precedent regarding the classification and measurement of cryptocurrencies and other digital tokens under current GAAP, the Company has determined to account for these tokens as indefinite-lived intangible assets in accordance with ASC 350, Intangibles-Goodwill and Other until further guidance is issued by the FASB.

During the years ended December 31, 2022 and 2021, the Company recorded a non-cash impairment charge in the amount of $7,262 and $765,232, respectively, which is reported in the accompanying consolidated statements of operations as a result of recent declines in the quoted market prices of certain digital tokens below the market price of their acquisition.

During year the ended December 31, 2021, the Company sold approximately 36.9 million Props tokens for proceeds $0.9 million. The realized gain of the sale of digital tokens was $307,934 for the year ended December 31, 2021 and is included in the consolidated statements of operations.