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Live Hosted Trivia Asset Sale | 12 Months Ended
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Dec. 31, 2020
Live Hosted Trivia Asset Sale |
Live Hosted Trivia Asset Sale |
4. | Live Hosted Trivia Asset Sale
On January 13, 2020, the Company entered into an asset purchase agreement with Sporcle, Inc., a Delaware corporation (“Sporcle”), pursuant to which the Company agreed to sell to Sporcle all of its assets necessary for Sporcle to conduct the live-hosted knowledge-based trivia events known as Stump! Trivia and OpinioNation for $1,360,000 in gross proceeds. On the closing date of the transaction (January 31, 2020), the Company received $1,260,000. The remaining $100,000 was being held back until the one-year anniversary of the closing date, or January 31, 2021, to satisfy indemnification claims, if any, for which the Company is liable. In August 2020, the Company and Sporcle entered into an agreement and amendment to the asset purchase agreement to change the end of the indemnification period from January 31, 2021 to August 31, 2020 in exchange for a $40,000 reduction to the $100,000 holdback amount. On September 1, 2020, the Company received the $60,000 holdback amount. The Company recorded a net gain of approximately $1,225,000 on this asset sale.

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