Annual report pursuant to Section 13 and 15(d)

GOODWILL AND INTANGIBLE ASSETS

v3.22.4
GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
Goodwill
The following table provides the changes in the carrying amount of goodwill for the years ended December 31, 2022 and December 31, 2021:
Goodwill, Gross Accumulated Impairment Goodwill, Net
Balance as of December 31, 2020
 $ 5,059  $ —  $ 5,059 
Additions from acquisitions —  —  — 
Measurement period adjustments —  —  — 
Balance as of December 31, 2021
 5,059  —  5,059 
Additions from acquisitions 42,074  —  42,074 
Measurement period adjustments —  —  — 
Balance as of December 31, 2022 $ 47,133  $ —  $ 47,133 
Intangible Assets
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill:
December 31, 2022 December 31, 2021
Gross
Carrying
Amount		 Accumulated
Amortization		 Net
Carrying
Amount		 Gross
Carrying
Amount		 Accumulated
Amortization		 Net
Carrying
Amount
Amortizable intangible assets:
Licenses $ 21,040  $ (7,962) $ 13,078  $ 19,000  $ (1,245) $ 17,755 
Acquired technology 15,003  (830) 14,173  —  —  — 
Customer relationships 12,000  (600) 11,400  —  —  — 
Trade names 2,740  (1,278) 1,462  1,240  (1,240) — 
50,783  (10,670) 40,113  20,240  (2,485) 17,755 
Nonamortizable intangible assets:
Marketing Agreement with MGM Resorts International 1,000  —  1,000  1,000  —  1,000 
Total intangible assets $ 51,783  $ (10,670) $ 41,113  $ 21,240  $ (2,485) $ 18,755 
Intangible assets consist of trade names, long-term license agreements with various third parties, acquired technology, and customer relationships. The Company entered into agreements with N3TWORK Inc. and The Tetris Company, LLC pursuant to which the Company acquired the rights to develop and operate Tetris®-branded mobile games for an initial term through August 2024. The Company paid N3TWORK Inc. $13.0 million at closing and agreed to pay up to an additional $34.0 million subject to satisfaction of certain conditions, of which $8.0 million was an Advance Payment (as defined in Note 16—Commitments and Contingencies). In addition, the Company will pay royalties to The Tetris Company, LLC, the licensor of the rights.
The aggregate amortization expenses for amortizable intangible assets are reflected in “Depreciation and amortization” in the Consolidated Statements of Operations. During the years ended December 31, 2022, 2021, and 2020, amortization expenses were $8.2 million, $0.9 million, and $0.7 million, respectively. There were no impairment charges for intangible assets for the years ended December 31, 2022, 2021, and 2020.
As of December 31, 2022, the estimated annual amortization expenses for the years ending December 31, 2022 through 2027 is as follows:
Year Ending December 31, Projected Amortization
Expense
2023 $ 13,137 
2024 11,042 
2025 5,551 
2026 5,551 
2027 4,120 
Thereafter 712 
Total $ 40,113