LICENSE AND MEDIA RIGHTS

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

MLB Promotion Rights Agreement

On October 11, 2022, the Company entered into a Promotional Rights Agreement (the "MLB Promotional Rights Agreement") with MLB Advanced Media L.P., on its own behalf and on behalf of Major League Baseball Properties, Inc., the Office of the Commissioner of Baseball, The MLB Network, LLC and the Major League

Baseball Clubs (collectively, the "MLB"), pursuant to which the Company entered into a strategic partnership with MLB to promote the Company’s new NSF-Certified for Sport® product line.

As consideration under the MLB promotional rights agreement, the Company has paid and is committed to pay a combination of cash over the license period, along with upfront non-cash consideration in the form of equity, as well as contingent consideration in the form of contingent payments based on revenue.

As of September 30, 2023 and December 31, 2022, the carrying value of the licensed properties was $16,412 and $23,399, respectively, recorded as a license and media rights asset within the condensed consolidated balance sheets. As of September 30, 2023 and December 31, 2022, the carrying value of the media rights was $6,107 and $7,482 recorded as a prepaid asset and a license and media rights asset within the condensed consolidated balance sheets. For the three and nine months ended September 30, 2023, the Company paid MLB $2,000 and $6,000, respectively, as part of the committed cash payments, and recognized $2,949 and $6,846, respectively, in amortization expense related to the license and media right assets. Licensed properties are amortized straight line and media rights are amortized as incurred.

Maturities of the MLB license and media rights payable as of September 30, 2023 are as follows:


Year Ending December 31:
2023 (3 months remaining)	$	2,000
2024	10,000
2025	12,000
Total payments	$	24,000
Less: Imputed interest	(1,044)
Total license and media rights payable	$	22,956
Less: Current license liabilities	(11,734)
Total non-current license and media rights payable	$	11,222

As of September 30, 2023, expected amortization of licensed properties are as follows:


Year Ending December 31:
2023 (3 months remaining)	$	1,824
2024	7,294
2025	7,294
Total future amortization	$	16,412