Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 9 - Intangible Assets and Goodwill

Intangible assets, net, consists of the following:

		Gross				Net
		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount
September 30, 2022:
Crackle Plus content rights	$	1,708,270	$	1,708,270	$	—
Crackle Plus brand value		18,807,004		9,067,662		9,739,342
Crackle Plus partner agreements		4,005,714		2,703,857		1,301,857
Distribution network		3,600,000		1,600,000		2,000,000
Locomotive contractual rights		1,500,986		477,464		1,023,522
1091 intangible assets		2,810,000		602,778		2,207,222
Redbox - Trade names and trademarks		73,600,000		613,333		72,986,667
Redbox - Technology		29,400,000		525,000		28,875,000
Redbox - Customer Relationships		176,600,000		1,800,833		174,799,167
Total	$	312,031,974	$	19,099,197	$	292,932,777
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 $4,494,547 and $1,483,361 for the three months ended September 30, 2022 and $7,656,432 and $3,994,264 for the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022 amortization expense for the next five years is expected be:

Remainder of 2022	$	7,433,713
2023		29,734,853
2024		28,190,254
2025		25,961,437
2026		23,554,185
2027 and beyond		178,058,335
Total	$	292,932,777

Total goodwill on our Condensed Consolidated Balance Sheets was $277,083,097 and $39,986,530 as of September 30, 2022 and December 31, 2021, respectively, and is comprised of the following:

	September 30, 2022
	Online Networks		Distribution & Production		Retail
Beginning balance	$	18,911,027	$	21,075,503	$	—
Acquisitions		—		6,188,388		230,908,179
Total	$	18,911,027	$	27,263,891	$	230,908,179
	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	$	—

The Company is still assessing the goodwill allocation associated with its acquisition of Redbox between its reporting units. There was no impairment recorded related to goodwill and intangible assets in the nine months ended September 30, 2022 and 2021, respectively.