Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS AND INTERNAL-USE SOFTWARE, NET

v3.24.3
INTANGIBLE ASSETS AND INTERNAL-USE SOFTWARE, NET
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND INTERNAL-USE SOFTWARE, NET
NOTE 10—INTANGIBLE ASSETS AND INTERNAL-USE SOFTWARE, NET
Intangible Assets
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill:
September 30, 2024 December 31, 2023
Gross
Carrying
Amount		 Accumulated
Amortization		 Net
Carrying
Amount		 Gross
Carrying
Amount		 Accumulated
Amortization		 Net
Carrying
Amount
Amortizable intangible assets:
Licenses $ 76,287  $ (29,874) $ 46,413  $ 71,908  $ (19,457) $ 52,451 
Acquired technology 16,653  (7,526) 9,127  15,003  (3,831) 11,172 
Customer relationships 12,000  (4,800) 7,200  12,000  (3,000) 9,000 
Trade names 2,740  (1,540) 1,200  2,740  (1,428) 1,312 
Internal-use software 183,945  (149,316) 34,629  168,232  (132,375) 35,857 
Other
 220  (11) 209  145  (4) 141 
291,845  (193,067) 98,778  270,028  (160,095) 109,933 
Nonamortizable intangible assets:
Marketing Agreement with a related party 1,000  —  1,000  1,000  —  1,000 
Total intangible assets $ 292,845  $ (193,067) $ 99,778  $ 271,028  $ (160,095) $ 110,933 
During the three months ended September 30, 2024 and 2023, intangible asset and internal-use software amortization was $10.4 million and $10.3 million, respectively, and during the nine months ended September 30, 2024 and 2023, intangible asset and internal-use software amortization was $31.1 million and $29.5 million, respectively. The aggregate amortization expense for amortizable intangible assets and internal-use software is reflected in “Depreciation and amortization” in the Condensed Consolidated Statements of Operations.
During the three and nine months ended September 30, 2024, the Company changed the useful life of certain definite-lived intangible assets associated with its non-fungible token initiative, resulting in an accelerated amortization of $1.8 million. The amount of accelerated amortization is reported as an asset impairment and reported within "Restructuring and related" in the Condensed Consolidated Statements of Operations. The Company recorded a non-cash impairment charge within "Restructuring and related" in the Condensed Consolidated Statements of Operations of $1.1 million during the three and nine months ended September 30, 2023.
Subsequent to September 30, 2024 and in connection with the Plan, the Company modified its future investment in certain game titles resulting in either (i) a significant reduction in user acquisition expense, (ii) significant reduction in future development expenses, or (iii) termination of game titles. The Company expects to record an estimated impairment charge of $7.1 million during the fourth quarter of 2024. Refer to Note 17—Commitments and Contingencies for more information regarding the Plan.
As of September 30, 2024, the estimated annual amortization expense is as follows:
Year Ending December 31, Projected Amortization
Expense
Remaining 2024
 $ 11,108 
2025 33,382 
2026 22,324 
2027 15,327 
2028 9,652 
Thereafter 6,985 
Total $ 98,778