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INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

NOTE 8 – INTANGIBLE ASSETS

 

These Intangible Assets are in the form of Movies and A&I Machine learning programs, acquired by Licensing agreements and other costs for development from August 25th, 2020 to December 31st, 2022. The accounting policy used for Revenue Recognition is ASC 606 five step model. The details below are the license terms of the movies and A&I machine learning program.

 

 

Movie projects

 

Name of the intangible asset   Movie Projects
what the intangible assets is to be used for  

We invest into movie development projects and this asset class contains intellectual rights to books, movies, scripts. We further develop the asset via developing complete movie script that is further offered to large distribution studios in entertainment industry that will sell the project so BOXO can produce the asset to full movie. Assets as well can be separately sold if there is buyer with interest.

 

     
Duration for the construction / completion of the intangible assets   Each movie asset needs 15-18 months to reach completion.
Expectation of revenue generation from the acquisition of the asset   Asset once pre-sold to distributor receives 40% margin revenue and once in cinemas and /or online streamers, BOXO receives revenue share in share of 15-25%.
Expected useful life of the assets upon completion   Movie asset package has expected value for 15 years.
How the assets are to be amortized   The company amortizes capitalized film cost when a film is released, and it begins to recognize revenue from the film.
Amount expended on research   The cost to produce this asset is currently USD 10,086,617 and contains works of people, licenses, and acquisition of initial project.

 

 

Acquisition of Intangible Asset - Movies    
Date  Note  Amount 
08/25/2020  Script Carnival Killers acquisition   1,050,600 
09/10/2020  Script writers Carnival   530,000 
08/24/2021  Script writers Carnival   1,660,000 
11/11/2021  Producer fees   475,000 
03/05/2022  Running Wild works   205,000 
05/04/2022  Running Wild works   50,000 
05/04/2022  Running Wild works   50,000 
05/04/2022  Running Wild works   50,000 
07/18/2022  Carnival Killers works   40,000 
07/18/2022  Kids Movie 1   100,000 
09/14/2022  Kids Movie 1 script   525,000 
09/14/2022  Movie X script   525,000 
09/14/2022  Producers works Movie BR   525,000 
09/14/2022  Movie X script writers   525,000 
09/25/2022  TV Series   2,916,017 
10/13/2022  Producer Works Script   30,000 
10/19/2022  Movie X script writers   600,000 
11/10/2022  Producer Work Movie BR   30,000 
11/28/2022  R. U. ROBOT S.R.O. Savage   100,000 
12/09/2022  Director Work Movie BR   30,000 
12/23/2022  Director Work Movie BR   20,000 
12/29/2022  Kids Movie 1 script   50,000 
TOTAL      10,086,617 

 

A&I machine learning program - Elisee

 

Name of the intangible asset   A&I machine learning program – Elisee
What the intangible assets is to be used for   Contains algorithms and code to analyze large portions of data within closed portfolio of items in order to set their best performing distribution within the portfolio.
Duration for the construction / completion of the intangible assets   Development started in 2018 and continues to present time. Company has several consultants and pays data and servers to upgrade and finalize the system.
Expectation of revenue generation from the asset   The asset currently generates app USD 1.5 million per year and we expect from 2023 to produce USD 2.5 million as we are able to offer upgraded version to more clients.

 

 

Expected useful life of the assets upon completion   Based on the recommendation from the system developers and technological changes the company policy is to amortize A&I Learning Program for 3 years. The company will conduct an annual impairment test to reassess our assumptions on the estimated useful life.
Amortization   The company amortizes capitalized film cost when a film is released, and it begins to recognize revenue from the film.

 

Pursuant to ASC 926-20-35, Livento Group, LLC amortizes capitalized movies cost when a movie is released, and it begins to recognize revenue from the film. These costs for an individual film are amortized and participation costs are accrued to direct operating expenses in the proportion that current year’s revenues bear to management’s estimates of the ultimate revenue at the beginning of the current year expected to be recognized from the exploitation, exhibition or sale of such film. Ultimate revenue includes estimates over a period not to exceed ten years following the date of initial release of the motion picture.

 

Under Topic 606, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP. The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance.

 

The Company reviewed all agreements at the date of initial application and elected to use the modified retrospective transition method, where the cumulative effect of the initial application is recognized as an adjustment to opening retained earnings on December 31, 2021. Considering there was no revenue in prior periods, the adoption of the new revenue recognition guidance had no transition impact.

 

The Company determines revenue recognition through the following steps:

 

● identification of the agreement, or agreements, with a buyer and/or investor;
● identification of the performance obligations in the agreement for the sale of lots including delivering title to the property being acquired from ILA;
● determination of the transaction price;
● allocation of the transaction price to the lots purchased when issued with equity or warrants to purchase equity in the Company; and
● recognition of revenue when, or as, we satisfy a performance obligation such as delivering title to lots purchased.

 

Research expenses are currently USD 5,032,230 including initial acquisition of the asset and continues investments into data, consultants, and servers. These expenses don’t include general costs, marketing and other indirect costs occurred during the time.

 

Acquisition of Intangible Asset – Elisee
Date  Note  Amount 
01/10/2020  Elisee System Development   2,500,000 
03/25/2020  Elisee System Development   70,030 
06/30/2020  Elisee System Development   240,000 
09/30/2020  Elisee System Development   260,000 
12/31/2020  Elisee System Development   250,000 
06/30/2021  Database of stock for analysis 2q   60,000 
06/30/2021  DEBIT PAYMENT TO ICONIC LABS PLC ref 1368435   295,000 
11/25/2021  Database of stock for analysis 3q   107,200 
12/31/2021  Elisee System Development   1,250,000 
TOTAL      5,032,230 

 

Amortization of Intangible Asset – Elisee
Date  Note   Amount 
06/30/2021  Amortization   102,084 
09/30/2021  Amortization   306,253 
12/31/2021  Amortization   306,253 
TOTAL      714,589 

 

Date  Note   Amount 
03/31/2022  Amortization   419,353 
06/30/2022  Amortization   419,353 
09/30/2022  Amortization   419,353 
12/31/2022  Amortization   419,353 
TOTAL      1,677,410 
         
Net value of Intangible Asset - A&I machine learning program  2,640,231 

 

 

Pursuant to ASC 926-20-50-1, Livento Group, LLC disclose its methods of accounting for film costs, including, but not limited to, the following: The method(s) used in computing amortization.

 

The method used for the accounting of movie cost for Revenue Recognition, is ASC 606 five step model.

 

The Company determines revenue recognition through the following steps:

 

● identification of the agreement, or agreements, with a buyer and/or investor;
● identification of the performance obligations in the agreement for the sale of lots including delivering title to the property being acquired from ILA;
● determination of the transaction price;
● allocation of the transaction price to the lots purchased when issued with equity or warrants to purchase equity in the Company; and
●

recognition of revenue when, or as, we satisfy a performance obligation such as delivering title to lots purchased.

 

Pursuant to ASC 926-20-35, Livento Group, LLC amortizes capitalized movies cost when a movie is released, and it begins to recognize revenue from the film. These costs for an individual film are amortized and participation costs are accrued to direct operating expenses in the proportion that current year’s revenues bear to management’s estimates of the ultimate revenue at the beginning of the current year expected to be recognized from the exploitation, exhibition or sale of such film. Ultimate revenue includes estimates unlimited period following the date of initial release of the movies.