INTANGIBLE ASSETS

12 Months Ended

Oct. 31, 2022

INTANGIBLE ASSETS

INTANGIBLE ASSETS

NOTE 9 – INTANGIBLE ASSETS

On March 1, 2021, the Company entered into an Asset Purchase Agreement with Gamefish Global Pty Ltd, a company incorporated in Australia (“Gamefish”), pursuant to which the Company acquired an instance of certain intellectual property that consists of a fully functional Seamless Aggregation Platform (“Aggregation Platform”). As consideration for the acquisition, the Company agreed to pay Gamefish $174,000, payable pursuant to a schedule set forth in the agreement, and certain milestones being met with respect to the stability, functionality and operation of the Aggregation Platform. The Company also agreed to pay a minimum of three months of monthly fees to Gamefish in the amount of $13,050 per month, for ongoing support for the intellectual property. As part of the Asset Purchase Agreement, the Company entered into consulting agreements with two principals of Gamefish. On November 23, 2021, the Company terminated the consultants and the ongoing development work contemplated by the Asset Purchase Agreement with Gamefish, effective on November 30, 2021. The outstanding payable to Gamefish of $58,000 was written off and the intangible asset was written down by the same amount.

The website development costs to upgrade and enhance the functionality of RKings’ website were capitalized which amount to $74,191 as of October 31, 2022.

Intangible assets related to software and website are amortized on a straight-line basis over their expected useful lives, estimated to be 3 years.

In connection with the acquisition of RKingsCompetition, Ltd, the Company recognized the definite-lived intangible assets consisting of $2,000,000 of trademarks and $600,000 of non-compete agreements. The trademark for RKings is amortized over 10 years and the non-compete agreement is amortized over 5 years.

In connection with operating online casino in Mexico, the Company applied for a gaming permit in Mexico through its subsidiary Golden Matrix MX in the amount of $223,725. The gaming permit is recognized as an intangible asset and is amortized over 6 years.

Amortization expenses related to intangible assets were $384,588 and $38,737 for the twelve months ended October 31, 2022 and 2021, respectively. Accumulated amortization was $422,479 and $38,737 as of October 31, 2022 and October 31, 2021, respectively.

The following table details the carrying values of the Company’s intangible assets excluding goodwill:

	As of
	October 31,			October 31,
	2022			2021
Definite-lived intangible assets
Aggregation Platform	$	116,000		$	174,000
Gaming permit in Mexico		223,725
Website Development Cost		89,829			-
Trademarks		2,000,000			-
Non-compete Agreements		600,000			-
Gross definite-lived intangible assets		3,029,554			174,000
Less: accumulated amortization
Aggregation Platform		(73,047	)		(38,737	)
Gaming permit in Mexico		(3,062	)
Website Development Cost		(26,370	)		-
Trademarks		(200,000	)		-
Non-compete Agreements		(120,000	)		-
Total accumulated amortization		(422,479	)		(38,737	)
Net definite-lived intangible assets	$	2,607,075		$	135,263