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Intangible assets, net
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible assets, net

Note 9. Intangible assets, net

 

Gross carrying values and accumulated amortization of intangible assets:

 

   September 30, 2024  December 31, 2023 
      Gross           Gross         
   Useful  Carrying   Accumulated       Carrying   Accumulated     
   Life  Amount   Amortization   Net   Amount   Amortization   Net 
Amortizing intangible assets                                 
Customer relationships  6 years  $1,350,000   $(1,312,417)  $37,583   $1,350,000   $(1,006,389)  $343,611 
Trade name  6 years   2,550,000    (1,828,867)   721,133    2,550,000    (1,555,925)   994,075 
Technology  6 years   3,935,177    (2,372,040)   1,563,137    3,050,000    (2,257,205)   792,795 
Software agreements  6 years   14,450,000    (10,608,332)   3,841,668    14,450,000    (8,791,944)   5,658,056 
Gaming license  6 years   4,020,000    (2,177,500)   1,842,500    4,020,000    (1,675,000)   2,345,000 
Internally developed software  2 - 10 years   2,904,473    (949,712)   1,954,761    2,904,473    (737,053)   2,167,420 
Domain name  15 years   6,935,000    (1,900,833)   5,034,167    6,935,000    (1,554,083)   5,380,917 
      $36,144,650   $(21,149,701)  $14,994,949   $35,259,473   $(17,577,599)  $17,681,874 

 

Amortization expense with respect to intangible assets for the three months ended September 30, 2024 and 2023 totaled $1,205,819 and $3,815,869, respectively, and for the nine months ended September 30, 2024 and 2023 totaled $2,610,050 and $4,133,730, respectively, which is included in depreciation and amortization in the Statements of Operations. As part of a review of goodwill and intangibles for the period ended September 30, 2024 the Company determined it was necessary to write down goodwill by $1,575,000 for TinBu and $1,906,000 for Global Gaming. Total impairment charges to goodwill for the three months ended September 30, 2024 were $3,481,000, It was also determined that there was impairment of certain intangible assets related to Global Gaming. As a result, for the period ended September 30, 2024 the Company recorded impairment charges of $150,333 to customer relationships, $547,669 to trade names and trademarks and $119,000 to technology acquired from Global Gaming. The total impairment charges to intangible assets for the period ended September 30, 2024 were $817,002.

 

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. Additionally, in connection with the annual review of goodwill and intangibles for the year ended December 31, 2023, 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  $1,018,428 
2025   4,073,715 
2026   1,583,715 
2027   

1,101,289

 
Thereafter   

7,217,802

 
 Total  $

14,994,949

 

 

The Company had software development costs of $476,800 related to projects not placed in service as of both September 30, 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.