| INTANGIBLE ASSETS |
NOTE
4 – INTANGIBLE ASSETS
In
March 2019, the Company entered into an agreement to facilitate the Le Mans Esports Series as part of a joint venture with Automobile
Club de l’Ouest (“ACO”), the organizer of the 24 Hours of Le Mans endurance race. Through the Company’s ownership
interest in this joint venture, which was increased to 51% from 45% in January 2021, the Company secured the rights to be the exclusive
video game developer and publisher for the 24 Hours of Le Mans race and the WEC, which the 24 Hours of Le Mans race is a part of, for
a ten-year period. In addition, through this joint venture with ACO, the Company has the right to create and organize esports leagues
and events for the Le Mans Esports Series. The Company acquired a video gaming license (the
“Le Mans Gaming License”) and an esports license (the “Le Mans Esports License”) related to its ownership interest
in this joint venture with the ACO.
In
2021, the Company also acquired intangible assets comprising the KartKraft computer video game as well as software, tradename and non-compete
agreements related to its acquisition of 100% of the share capital of Studio397 B.V.
The
following is a summary of intangible assets as of December 31, 2025 and 2024:
SUMMARY OF INTANGIBLE ASSETS
| | |
Licensing
Agreements (Finite) | | |
Software (Finite) | | |
Distribution Contracts (Finite) | | |
Trade
Names (Indefinite) | | |
Non-Compete
Agreement (Finite) | | |
Accumulated Amortization | | |
Total | |
| Balance as of January 1, 2024 | |
$ | 2,401,681 | | |
$ | 8,115,937 | | |
$ | 560,000 | | |
| 223,194 | | |
| 180,266 | | |
| (5,685,271 | ) | |
| 5,795,807 | |
| Amortization | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (2,381,170 | ) | |
| (2,381,170 | ) |
| Foreign currency translation adjustment | |
| (19,938 | ) | |
| (139,869 | ) | |
| - | | |
| (21,225 | ) | |
| (10,044 | ) | |
| 141,737 | | |
| (49,339 | ) |
| Balance as of December 31, 2024 | |
| 2,381,743 | | |
$ | 7,976,068 | | |
$ | 560,000 | | |
$ | 201,969 | | |
$ | 170,222 | | |
$ | (7,924,704 | ) | |
$ | 3,365,298 | |
| Amortization | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (1,075,114 | ) | |
| (1,075,114 | ) |
| Gaming software additions | |
| - | | |
| 1,110,751 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,110,751 | |
| Disposal of intangible assets | |
| (906,167 | ) | |
| (2,340,000 | ) | |
| (560,000 | ) | |
| - | | |
| (170,222 | ) | |
| 3,976,389 | | |
| - | |
| Foreign currency translation adjustment | |
| 187,931 | | |
| 702,213 | | |
| - | | |
| 17,547 | | |
| - | | |
| (537,083 | ) | |
| 370,608 | |
| Balance as of December 31, 2025 | |
$ | 1,663,507 | | |
$ | 7,449,032 | | |
$ | - | | |
$ | 219,516 | | |
$ | - | | |
$ | (5,560,512 | ) | |
$ | 3,771,543 | |
| Weighted average remaining amortization period at December 31, 2025 | |
| 15.2 | | |
| 4.2 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Accumulated
amortization of intangible assets consists of the following:
SCHEDULE OF ACCUMULATED AMORTIZATION OF INTANGIBLE ASSETS
| | |
Licensing Agreements | | |
Software | | |
Distribution Contracts | | |
Non-Compete Agreement | | |
Accumulated Amortization | |
| Balance as of January 1, 2024 | |
$ | 298,538 | | |
| 4,646,467 | | |
| 560,000 | | |
| 180,266 | | |
| 5,685,271 | |
| Amortization expense | |
| 902,744 | | |
| 1,478,426 | | |
| - | | |
| - | | |
| 2,381,170 | |
| Foreign currency translation adjustment | |
| - | | |
| (131,693 | ) | |
| - | | |
| (10,044 | ) | |
| (141,737 | ) |
| Balance as of December 31, 2024 | |
| 1,201,282 | | |
$ | 5,993,200 | | |
$ | 560,000 | | |
$ | 170,222 | | |
$ | 7,924,704 | |
| Amortization expense | |
| 83,171 | | |
| 991,943 | | |
| - | | |
| - | | |
| 1,075,114 | |
| Disposal of intangible assets | |
| (906,167 | ) | |
| (2,340,000 | ) | |
| (560,000 | ) | |
| (170,222 | ) | |
| (3,976,389 | ) |
| Foreign currency translation adjustment | |
| 37,593 | | |
| 499,490 | | |
| - | | |
| - | | |
| 537,083 | |
| Balance as of December 31, 2025 | |
$ | 415,879 | | |
$ | 5,144,633 | | |
$ | - | | |
$ | - | | |
$ | 5,560,512 | |
Estimated
aggregate amortization expense of intangible assets for the next five years and thereafter, excluding future amortization on non-amortizing
finite-lived intangible assets of $0.2 million, is as follows:
SCHEDULE OF ESTIMATED AGGREGATE AMORTIZATION EXPENSE OF INTANGIBLE ASSETS
| For the Years Ending December 31, | |
Total | |
| 2026 | |
$ | 1,366,173 | |
| 2027 | |
| 562,409 | |
| 2028 | |
| 438,069 | |
| 2029 | |
| 199,158 | |
| 2030 | |
| 171,721 | |
| Thereafter | |
| 814,497 | |
| Estimated
aggregate amortization expense | |
$ | 3,552,027 | |
|