PREPAID EXPENSES – RELATED PARTY |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid Expenses Related Party | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PREPAID EXPENSES – RELATED PARTY | NOTE 6 – PREPAID EXPENSES – RELATED PARTY
On March 10, 2023, the Company amended its exclusive software license agreement with SDE relating to the ARK franchise. For DLC’s the Company plans to release during the term of the agreement, the Company has the option to pay the $5.0 million DLC payment in whole or in part, when paid in advance; or in full, upon the DLC release. No payment for any DLC under this agreement will exceed $5.0 million.
During the three and six months ended June 30, 2026, the Company made $0.5 million and $1.0 million in prepaid royalty payments related to ARK: Survival Ascended DLC’s which have not yet been released. During the year ended December 31, 2025, the Company made $1.6 million in prepaid royalty payments related to the ARK: Survival Ascended DLC’s which have not yet been released. Prepaid expenses – related party consisted of the following as of June 30, 2026 and December 31, 2025:
The amount classified as short-term, as of June 30, 2026 and December 31, 2025, includes prepaid royalties for ARK: Survival Ascended DLC’s which have not yet been released and various operational software licenses obtained through SDE.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||