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Intangible assets, net
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible assets, net

Note 8. Intangible assets, net

 

Gross carrying values and accumulated amortization of intangible assets:

 

   March 31, 2024  December 31, 2023 
   Useful Life  Gross
Carrying
Amount		   Accumulated
Amortization		   Net   Gross
Carrying
Amount		   Accumulated
Amortization		   Net 
Amortizing intangible assets                                   
Customer relationships  6 years  $1,350,000   $(1,062,639)  $287,361   $1,350,000   $(1,006,389)  $343,611 
Trade name  6 years   2,550,000    (1,626,896)   923,104    2,550,000    (1,555,925)   994,075 
Technology  6 years   3,050,000    (2,362,445)   687,555    3,050,000    (2,257,205)   792,795 
Software agreements  6 years   14,450,000    (9,470,000)   4,980,000    14,450,000    (8,791,944)   5,658,056 
Gaming license  6 years   4,020,000    (1,842,500)   2,177,500    4,020,000    (1,675,000)   2,345,000 
Internally developed software  2 - 10 years   2,904,473    (825,593)   2,078,880    2,192,050    (737,053)   2,167,420 
Domain name  15 years   6,935,000    (1,669,667)   5,265,333    6,935,000    (1,554,083)   5,380,917 
      $35,259,473   $(18,859,740)  $16,399,733   $34,547,050   $(17,577,599)  $17,681,874 

 

Amortization expense with respect to intangible assets for the three months ended March 31, 2024 and 2023 totaled $1,284,982 and $1,381,035, respectively, which is included in depreciation and amortization in the Statements of Operations. The Company determined that there was an impairment of long-lived assets of $412,450 during the year ended December 31, 2022, which relates to a project no longer being pursued by the Company. In connection with the annual review of goodwill and intangibles, the Company determined that it was necessary to write down goodwill by $5,650,000 for TinBu and $1,060,200 for Global Gaming. The total impairment charges related to goodwill were $6,710,200 for the year ended December 31, 2023. It was also determined that there was impairment of certain intangible assets related to Global Gaming. As a result, for the year ended December 31, 2023 the Company recorded impairment charges of $488,300 to trade names and trademarks and $311,500 to technology acquired from Global Gaming. The total impairment charges to intangible assets for the year ended December 31, 2023 were $798,800.

 

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

 

Years ending December 31,  Amount 
2024  $4,674,934 
2025   4,509,655 
2026   1,976,515 
2027   944,729 
Thereafter   4,293,900 
Total  $16,399,733 

 

The Company had software development costs of $476,850 related to projects not placed in service as of both March 31, 2024 and December 31, 2023, 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.