INTANGIBLE ASSETS - SOFTWARE, LICENSES, TRADEMARKS, DEVELOPED TECHNOLOGY, CUSTOMER RELATIONSHIPS, AND NON-COMPETE AGREEMENTS

3 Months Ended

Mar. 31, 2026

INTANGIBLE ASSETS - SOFTWARE, LICENSES, TRADEMARKS, DEVELOPED TECHNOLOGY, CUSTOMER RELATIONSHIPS, AND NON-COMPETE AGREEMENTS

INTANGIBLE ASSETS - SOFTWARE, LICENSES, TRADEMARKS, DEVELOPED TECHNOLOGY, CUSTOMER RELATIONSHIPS, AND NON-COMPETE AGREEMENTS

NOTE 8 – INTANGIBLE ASSETS – SOFTWARE, LICENSES, TRADEMARKS, DEVELOPED TECHNOLOGY, CUSTOMER RELATIONSHIPS, AND NON-COMPETE AGREEMENTS

Software represents software licenses as well as the costs of internally developed gaming software (e.g., a new sports betting platform which is classified as intangible construction in process). Capitalized software costs are amortized based on the straight-line method over the remaining estimated economic life of the product.

During the three months ended March 31, 2026, and 2025, respectively, software development costs of $228,820 and $0, were incurred and capitalized.

Intangible construction in process mainly represents the development of new software in Montenegro and Malta for a sports betting platform. During the three months ended March 31, 2026, and 2025, respectively, costs of $677,189 and $706,095, were incurred and capitalized. During the same periods, intangible assets of $34,933 and $0, respectively, were placed into service.

We anticipate that the majority of intangible construction in progress will be placed in service in stages during 2027, depending on the progress of software development.

Licenses relate to operational gaming licenses issued in Bosnia, Cyprus and Brazil. During the three months ended March 31, 2026, and 2025, respectively, costs of $23,847 and $409,468, were incurred and capitalized.

Other intangible assets relate to retail agent partner relationships and online customer relationships identified during the acquisition of Bit Tech Tanzania in the amount of $1,560,910, as well as the purchase of the domain magicbet777.com by Meridianbet Brazil LTDA in the amount of $2,418,179. Other intangible assets are amortized over 5 years.

Intangible assets related to software and website are amortized on a straight-line basis over their expected useful lives, estimated to be 5 years.

Amortization expenses related to intangible assets were $1,025,175 and $2,152,640 for the three months ended March 31, 2026, and 2025, respectively.

The following table details the carrying values of the Company’s intangible assets:

Definite-lived intangible assets		As of March 31, 2026				As of December 31, 2025
Intangible construction in process		$	11,108,889			$	10,702,638
Licenses			4,527,453				4,232,431
Software			19,347,029				19,742,103
Trademarks and tradenames			270,664				12,240,138
Developed technology			-				3,100,000
Customer relationships			157,337				17,963,384
Non-compete agreement			-				296,814
Other intangible assets			3,979,090				3,887,442
Gross intangible assets			39,390,462				72,164,950
Less: accumulated impairment and amortization
Licenses amortization			(1,859,553	)			(1,582,137	)
Software amortization			(8,961,705	)			(8,563,000	)
Trademarks and tradenames amortization			(60,007	)			(12,122,964	)
Developed technology			-				(3,100,000	)
Customer relationships			(7,867	)			(17,963,384	)
Non-compete agreement			-				(296,814	)
Other intangible assets amortization			(2,274,636	)			(2,072,685	)
Total accumulated impairment and amortization			(13,163,768	)			(45,700,984	)
Net definite-lived intangible assets		$	26,226,694			$	26,463,965

The table below shows expected amortization expenses for the next five years of intangible assets recorded as of March 31, 2026:

Year Ending December 31,		Estimated Amortization
2026			7,618,362
2027			5,198,336
2028			4,939,858
2029			4,300,826
2030			3,023,810
Thereafter			1,145,502
Total future amortization			26,226,694