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Other Intangibles | 12 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Other Intangibles |
(7) | Other Intangibles
Other intangibles as of December 31, 2022 are comprised of the following:
|  | Asset |  |  | Accumulated amortization |  |  | Net asset |  |  | Amortization period (years) |
Advertiser relationships |  | $ | 2,029,000 |  |  | $ | (636,869 | ) |  | $ | 1,392,131 |  |  |  | 6-11 |
Franchise rights |  |  | 4,739,523 |  |  |  | — |  |  |  | 4,739,523 |  |  |  | 10 |
Trade name |  |  | 510,000 |  |  |  | (33,202 | ) |  |  | 476,798 |  |  |  | 8 |
|  |  | 7,278,523 |  |  |  | (670,071 | ) |  |  | 6,608,452 |  |  |  |  |
Brands |  |  | 1,582,663 |  |  |  | — |  |  |  | 1,582,663 |  |  |  |  |
Other intangibles with indefinite lives |  |  | 28,824 |  |  |  | — |  |  |  | 28,824 |  |  |  |  |
|  | $ | 8,890,010 |  |  | $ | (670,071 | ) |  | $ | 8,219,939 |  |  |  |  |
Other intangibles as of December 31, 2021 are comprised of the following:
|  | Asset |  |  | Accumulated amortization |  |  | Net asset |  |  | Amortization period (years) |
Advertiser relationships |  | $ | 1,464,000 |  |  | $ | (454,731 | ) |  | $ | 1,009,269 |  |  |  | 11 |
Franchise rights |  |  | 25,149,300 |  |  |  | (5,072,849 | ) |  |  | 20,076,451 |  |  |  | 10 |
|  |  | 26,613,300 |  |  |  | (5,527,580 | ) |  |  | 21,085,720 |  |  |  |  |
Brands |  |  | 1,582,663 |  |  |  | — |  |  |  | 1,582,663 |  |  |  |  |
Other intangibles with indefinite lives |  |  | 28,824 |  |  |  | — |  |  |  | 28,824 |  |  |  |  |
|  | $ | 28,224,787 |  |  | $ | (5,527,580 | ) |  | $ | 22,697,207 |  |  |  |  |
If an event or change in circumstances were to indicate that the carrying amount of any other intangibles is not recoverable, the carrying amount will be reduced to the estimated fair value. For the purpose of testing its other intangibles for impairment, the Company has identified its market clusters, digital, and esports as its reporting units. During the fourth quarter of 2022, the Company received information related to the franchise rights in the esports segment, and based on that information the Company concluded that the carrying amount of the franchise rights was not fully recoverable. Therefore, the Company performed a quantitative impairment test for its franchise rights as of December 31, 2022. As a result of the test, the Company recorded an impairment loss of $12.8 million. The fair values of the franchise rights were estimated using an income approach. The income approach is based upon discounted cash flow analyses incorporating variables such as projected revenue, projected growth rate for revenue, projected operating income margins, and a discount rate appropriate for the esports industry. The key assumptions used in the discounted cash flow analyses are as follows:
Revenue growth rate(s) |  | 3.0% - 25.0%
Operating income margin(s) |  | (22.3 ) % - 43.5%
Discount rate |  | 20.0%
The Company recorded amortization expense of $3.2 million and $2.7 million for the years ended December 31, 2021 and 2022, respectively. Estimated future amortization expense related to intangible assets subject to amortization for the next five years and thereafter is as follows:
2023 |  | $ | 968,083 |
2024 |  |  | 968,083 |
2025 |  |  | 968,083 |
2026 |  |  | 968,083 |
2027 |  |  | 968,083 |
Thereafter |  |  | 1,768,037 |
Total |  | $ | 6,608,452 |

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -URI https://asc.fasb.org/subtopic&trid=2144471 + Details
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