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Intangible assets, net

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

6. Intangible assets, net

Gross carrying values and accumulated amortization of intangible assets:

	June 30, 2023									December 31, 2022
	Useful Life		Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Amortizing intangible assets
Customer relationships		6 years	$	1,350,000	$	(893,836	)	$	456,164	$	1,350,000	$	(781,385	)	$	568,615
Trade name		6 years		2,550,000		(854,723	)		1,695,277		2,550,000		(642,222	)		1,907,778
Technology		6 years		3,050,000		(1,691,944	)		1,358,056		3,050,000		(1,437,778	)		1,612,222
Software agreements		6 years		14,450,000		(7,380,278	)		7,069,722		14,450,000		(5,968,611	)		8,481,389
Gaming license		6 years		4,020,000		(1,340,000	)		2,680,000		4,020,000		(1,005,000	)		3,015,000
Internally developed software		2 - 10 years		2,904,423		(555,304	)		2,349,119		2,904,423		(350,232	)		2,554,191
Domain name		15 years		6,935,000		(1,322,916	)		5,612,084		6,935,000		(1,091,750	)		5,843,250
			$	35,259,423	$	(14,039,001	)	$	21,220,422	$	35,259,423	$	(11,276,978	)	$	23,982,445

Amortization expense with respect to intangible assets for the three months ended June 30, 2023 and 2022 totaled $1,381,536 and $1,209,465, respectively, and for the six months ended June 30, 2023 and 2022 totaled $2,762,571 and $2,664,928, respectively, which is included in depreciation and amortization in the Statements of Operations.

Estimated amortization expense for years of useful life remaining is as follows:

Years ending December 31 ,	Amount
Remainder of 2023	$	2,647,946
2024		4,876,562
2025		4,556,562
2026		2,570,332
2027		1,178,167
Thereafter		5,390,853
Total	$	21,220,422

The Company had software development costs of $476,850 related to projects not placed in service as of June 30, 2023 and December 31, 2022, respectively, which is included in intangible assets in the Company’s consolidated balance sheets. Amortization will be calculated using the straight-line method over the appropriate estimated useful life when the assets are put into service.