Intangible Assets

6 Months Ended

Nov. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

NOTE 4 — INTANGIBLE ASSETS

The following table sets forth the intangible assets, including accumulated amortization as of November 30, 2020:

	November 30, 2020			May 31, 2020
	Remaining Useful Life	Intangible Assets		Remaining Useful Life		Intangible Assets
Non-Competes	4 years	$	1,023,118		4.50 years	$	1,023,118
Trademarks	Indefinite		866,000		Indefinite		866,000
Customer database	2 years		35,000		10 years		—
Restrictive covenant	2 years		115,000		—		—
Customer contracts	10 years		343,414		—		546,000
Internet domain	2 years		3,000		2.50 years		3,000
Total intangible assets		$	2,385,532			$	2,438,118
Accumulated amortization			(429,973)				(296,744	)
Net carrying value		$	1,955,559			$	2,141,374

The following table sets forth the future amortization of the Company’s intangible assets as of November 30, 2020:

For the fiscal years ending May 31:
2021	$	133,229
2022		266,040
2023		265,457
2024		130,197
2025		10,834
Thereafter		283,802
Total	$	1,089,559

During the six months ended November 30, 2020 and 2019, the Company recorded amortization expense of $133,229 and $102,812, respectively. During the six months ended November 30, 2020, the Company recorded $202,586 of impairment loss in relation to the customer contracts resulting from termination of franchise agreements.

Goodwill

The Company’s goodwill carrying amounts relate to the acquisitions of Simplicity Esports LLC, PLAYlive Nation Inc. and Simplicity El Paso, LLC. The composition of the goodwill balance, is as follows:

	November 30, 2020		May 31, 2020
Simplicity Esports, LLC	$	4,456,250	$	4,456,250
Simplicity El Paso, LLC		25,000		—
PLAYlive Nation Inc.		698,891		698,891
Total Goodwill	$	5,180,141	$	5,155,141