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

6 Months Ended

Jun. 30, 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 six months ended June 30, 2026, and 2025, respectively, software development costs of $1,523,204 and $1,146,753, 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 six months ended June 30, 2026, and 2025, respectively, costs of $1,336,484 and $4,830,127 were incurred and capitalized, while a total of $2,263,504 and $3,442,266 were placed in service in 2026 and 2025.

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 six months ended June 30, 2026, and 2025, respectively, costs of $126,240 and $767,679, were incurred and capitalized. The licenses are amortized over the life of the licenses.

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 $1,547,606, as well as the purchase of the domain magicbet777.com by Meridianbet Brazil LTDA in the amount of $3,670,363. 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 $1,531,499 and $2,465,380 for the three months ended June 30, 2026, and 2025, respectively and $2,556,674 and $4,618,020 for the six months ended June 30, 2026, and 2025, respectively.

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

Definite-lived intangible assets		As of June 30, 2026				As of December 31, 2025
Intangible construction in process		$	9,220,125			$	10,702,638
Licenses			4,668,291				4,232,431
Software			21,892,152				19,742,103
Trademarks and tradenames			1,814,653				12,240,138
Developed technology			-				3,100,000
Customer relationships			157,337				17,963,384
Non-compete agreement			-				296,814
Other intangible assets			-				3,887,442
Gross intangible assets			37,752,558				72,164,950
Less: accumulated impairment and amortization
Licenses amortization			(2,076,841	)			(1,582,137	)
Software amortization			(9,887,923	)			(8,563,000	)
Trademarks and tradenames amortization			(73,510	)			(12,122,964	)
Developed technology			-				(3,100,000	)
Customer relationships			(15,734	)			(17,963,384	)
Non-compete agreement			-				(296,814	)
Other intangible assets amortization			-				(2,072,685	)
Total accumulated impairment and amortization			(12,054,008	)			(45,700,984	)
Net definite-lived intangible assets		$	25,698,550			$	26,463,965

The table below shows expected amortization expenses for the next five years of intangible assets recorded as of June 30, 2026:

Year Ending December 31,		Estimated Amortization
2026			5,119,773
2027			7,562,526
2028			5,309,523
2029			3,787,943
2030			3,047,044
Thereafter			871,741
Total future amortization			25,698,550