NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS

Intangible assets consisted of the following as of June 30, 2026 and December 31, 2025:

 SCHEDULE OF INTANGIBLE ASSETS

All goodwill and the intangible assets presented above relate to the Entertainment business. Intangible assets of the Video Solutions business, consisting of patents and trademarks (net) and patents and trademarks pending, are included within assets of the Video Solutions business held-for-sale in the condensed consolidated balance sheets. See Note 22, Discontinued Operations.

Patents and trademarks pending will be amortized beginning at the time they are issued by the appropriate authorities. If issuance of the final patent or trademark is denied, then the amount deferred will be immediately charged to expense.

Other intangible assets consist of sponsorship agreement network, SEO content, personal seat licenses, and website enhancements. These assets are recorded at cost and amortized on a straight-line basis over their estimated useful lives.

 SCHEDULE OF INTANGIBLE ASSETS USEFUL LIFE

Amortization expense was $8,550 and $365,828 for the three months ended June 30, 2026 and 2025, respectively, and $14,717 and $687,298 for the six months ended June 30, 2026 and 2025, respectively. Estimated amortization expense for intangible assets with definite lives is as follows:

 SCHEDULE OF ESTIMATED AMORTIZATION FOR INTANGIBLE ASSETS

Annual impairment test

The Company performed its annual goodwill and intangible asset impairment test as of December 31, 2025, which resulted in a $1,428,000 goodwill impairment charge related to the Entertainment reporting unit, reducing goodwill to $4,377,507, the balance at both December 31, 2025 and June 30, 2026. All of the Company’s goodwill relates to the Entertainment business; the Video Solutions business carries no goodwill. See Note 6 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding the methodology, assumptions, and results of the annual impairment test.

No events or changes in circumstances were identified during the three and six months ended June 30, 2026 that would indicate the carrying value of goodwill may not be recoverable, and accordingly no interim goodwill impairment test was performed.

Indefinite-lived intangible assets

The Company held indefinite-lived trade names and trademarks with an aggregate carrying value of $340,000 as of both June 30, 2026 and December 31, 2025, consisting of the TicketSmarter trade name of $210,000 and the Country Stampede trade name of $130,000. These assets were most recently tested for impairment in connection with the Company’s December 31, 2025 annual impairment test; see Note 6 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.