Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 9 - Intangible Assets

Intangible assets, net, consists of the following:

		Gross				Net
		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount
June 30, 2022:
Crackle Plus content rights	$	1,708,270	$	1,708,270	$	—
Crackle Plus brand value		18,807,004		8,395,984		10,411,020
Crackle Plus partner agreements		4,005,714		2,503,571		1,502,143
Distribution network		3,600,000		1,300,000		2,300,000
Locomotive contractual rights		1,500,986		352,382		1,148,604
1091 intangible assets		2,810,000		344,444		2,465,556
Total	$	32,431,974	$	14,604,651	$	17,827,323
December 31, 2021:
Crackle Plus content rights	$	1,708,270	$	1,494,736	$	213,534
Crackle Plus brand value		18,807,004		7,052,626		11,754,378
Crackle Plus partner agreements		4,005,714		2,103,000		1,902,714
Distribution network		3,600,000		700,000		2,900,000
Locomotive contractual rights		1,356,868		92,403		1,264,465
Total	$	29,477,856	$	11,442,765	$	18,035,091

Amortization expense was $1,712,668 and $1,305,451 for the three months ended June 30, 2022 and 2021, respectively, and $3,161,886 and 2,510,903, for the six months ended June 30, 2022 and 2021, respectively.

As of June 30, 2022 amortization expense for the next 5 years is expected be:

Remainder of 2022	$	3,110,760
2023		6,221,520
2024		4,676,921
2025		2,810,604
2026		1,007,518
Total	$	17,827,323

Total goodwill on our Condensed Consolidated Balance Sheets was $45,463,240 and $39,986,530 as of June 30, 2022 and December 31, 2021, respectively, and is comprised of the following:

	June 30, 2022
	Online Networks		Distribution & Production		SVOD
Beginning balance	$	18,911,027	$	21,075,503	$	—
Acquisitions		—		5,476,710		—
Total	$	18,911,027	$	26,552,213	$	—
	December 31, 2021
	Online Networks		Distribution & Production		SVOD
Beginning balance	$	18,911,027	$	1,236,760	$	1,300,319
Acquisitions		—		19,838,743		—
Accumulated impairment losses		—		—		(1,300,319)
Total	$	18,911,027	$	21,075,503	$	—

There was no impairment recorded related to goodwill and intangible assets in the six months ended June 30, 2022 and 2021, respectively.