9. Goodwill and intangible assets

(a) Goodwill

The following table presents the changes in the carrying amount of goodwill:

 Schedule of goodwill 

Goodwill resulting from the acquisition of Click was allocated to the Agency reportable segment.

In connection with the disposal of FaZe Media, Inc. on April 1, 2025 (see Note 4), the Company disposed of goodwill of $7.1 million.

In connection with the decision in the third quarter of 2025 to discontinue the operations of Frankly (see Note 21), the remaining value of goodwill of Frankly was impaired. Goodwill impairment charges were $5.1 million and were recorded within net income (loss) from discontinued operations on the consolidated statements of operations and comprehensive loss.

The Company concluded goodwill related to Stream Hatchet and Sideqik reporting units were impaired as of December 31, 2024. The Company recognized an impairment charge of $7.4 million for the year ended December 31, 2024.

Goodwill as of December 31, 2025 consisted of $5.5 million within the Click reporting unit and $0.4 million within the Stream Hatchet reporting unit. The Company has set an annual goodwill impairment test date for the Click reporting unit of June 30, which aligns with its local financial reporting year end. As the carrying value of the Stream Hatchet reporting unit was negative as of December 31, 2025, no further goodwill impairment was recorded during the year ended December 31, 2025.

(b) Intangible assets, definite lived

Intangible assets consist of the following:

 Schedule of  intangible assets 

The Company recognized amortization expense for intangible assets of $1.3 million and $2.8 million for the years ended December 31, 2025 and 2024, respectively.

Amortization expense for intangible assets is expected to be as follows over the next five years, and thereafter:

 Schedule of amortization expense for intangible assets 

In connection with the disposal of FaZe Media, Inc. on April 1, 2025 (see Note 4), the Company disposed of intangible assets with carrying value of $9.6 million as follows: a) Customer relationships with a original cost of $2.7 million and accumulated amortization of $0.2 million; b) Brand name with a original cost of $7.2 million and accumulated amortization of $0.4 million; and c) Talent network with an original cost of $0.7 million and accumulated amortization of $0.4 million.

On September 11, 2025, the Company acquired Click (see Note 4) and recognized the following intangible assets: a) Customer relationships of $0.6 million; b) Brand name of $0.7 million; and c) Talent network of $3.2 million.

In connection with the decision in the third quarter of 2025 to discontinue the operations of Frankly (see Note 21), the remaining carrying value of intangible assets of Frankly were impaired. Intangible assets impairment charges were $3.4 million and were recorded within net income (loss) from discontinued operations on the consolidated statements of operations and comprehensive loss.

During the year ended December 31, 2025, Faze Esports recognized an impairment expense of $0.3 million on its talent network intangible assets, due to the departure of a player in 2025 that was acquired earlier in 2025 for $0.3 million.

During the year ended December 31, 2024, the Company recorded an impairment of intangible assets acquired on the acquisition of Engine (Stream Hatchet and Sideqik reporting units) of $4.0 million.

(c) Intangible assets, indefinite lived

On July 24, 2025, the Company entered into a subscription agreement, pursuant to which the subscriber purchased from the Company 3,433.33 shares of Series A-1 Convertible Preferred Stock of the Company, par value $0.0001 per share (see Note 15), in consideration for Crypto Punk 5577 non-fungible token (“NFT”), which was deemed to have a fair market value of $3.9 million.

Regarding the NFT, CryptoPunks launched as a fixed set of 10,000 items in mid-2017. Rare and highly sought-after “Cowboy Ape” CryptoPunk NFT from Robert Leshner, founder of the DeFi protocol Compound and CEO of Superstate. Valued for its rarity and historical significance as one of only 24 Ape CryptoPunks in existence, the Cowboy Ape is widely regarded as the most desirable CryptoPunks of the 10,000-piece collection and NFTs in general.

In addition to the acquisition of the Cowboy Ape NFT, the Company acquired an additional seven CryptoPunks using ETH valued at $1.8 million at the time of purchase.

Digital assets outside the scope of ASC 350-60, such as non-fungible tokens (“NFTs”), are accounted for as indefinite-lived intangible assets under ASC 350-30.

Subsequent to December 31, 2025, the Company sold all eight of its CryptoPunk assets for total consideration of $1.9 million. As a result, during the year ended December 31, 2025, the Company recognized impairment expense of $3.7 million on the consolidated statements of operations and comprehensive loss.