Intangible Assets (Notes)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

INTANGIBLE ASSETS

The identifiable intangible assets, other than Goodwill, consists of the following assets:    

	September 30, 2022				December 31, 2021
	Balance		Accumulated Amortization		Balance		Accumulated Amortization		Useful Life (in years)
Content provider networks	$	160,000	$	160,000	$	160,000	$	160,000	2
Trade names	87,000		87,000		87,000		87,000		1
Developed technology	820,000		820,000		820,000		820,000		5
Self-service content customers	2,810,000		2,810,000		2,810,000		2,810,000		3
Managed content customers	2,140,000		2,140,000		2,140,000		2,140,000		3
Domains	166,469		166,469		166,469		166,469		5
Embedded non-compete provision	28,000		28,000		28,000		28,000		2
Total definite-lived intangible assets	6,211,469		6,211,469		6,211,469		6,211,469
Digital Assets	71,455		—		213,263		—		Indefinite
Total intangible assets	$	6,282,924	$	6,211,469	$	6,424,732	$	6,211,469

Total identifiable intangible assets from the Company’s acquisitions and other acquired assets net of accumulated amortization thereon consists of the following:

	September 30, 2022		December 31, 2021
Ebyline Intangible Assets	$	2,370,000	$	2,370,000
ZenContent Intangible Assets	722,000		722,000
Domains	166,469		166,469
TapInfluence Intangible Assets	2,953,000		2,953,000
Digital Assets	71,455		213,263
Total	$	6,282,924	$	6,424,732
Less accumulated amortization	(6,211,469)		(6,211,469)
Intangible assets, net	$	71,455	$	213,263

There were no impairment charges associated with the Company’s definitive-lived intangible assets in the three and nine months ended September 30, 2022 and 2021.

Amortization expense recorded in depreciation and amortization in the accompanying consolidated statements of operations and comprehensive loss was $216,667 and $505,556 for the three and nine months ended September 30, 2021, respectively. No amortization expense was recorded for the three and nine months ended September 30, 2022 as all applicable assets have been fully amortized.

The Company determines the fair value of its digital assets, specifically Bitcoin and Ethereum, on a nonrecurring basis in accordance with ASC 820, Fair Value Measurement, based on quoted prices on the active exchange(s) that has been determined to be the principal market for such assets (Level 1 inputs). The Company performs an analysis each quarter to identify whether events or changes in circumstances, principally decreases in the quoted prices on active exchanges, indicate that it is more likely than not that the digital assets are impaired. In determining if an impairment has occurred, the Company considers the lowest market price of one unit of the digital asset quoted on the active exchange since acquiring the digital asset. If the then-current carrying value of a digital asset exceeds the fair value so determined, an impairment loss has occurred with respect to those digital assets in the amount equal to the difference between their carrying value and the price determined.

Impairment losses on digital assets are recognized within general and administrative expenses in the consolidated statements of operations and comprehensive loss in the period in which the impairment is identified. The impaired digital assets are written down to the lowest market price at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains are not recorded until realized upon sale, at which point they are presented net of any impairment losses for the same digital assets held. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the digital assets sold immediately prior to sale.

During the three and nine months ended September 30, 2022, the Company did not conduct any transactions in digital assets. The Company impaired the value of its digital assets by $1,081 and $141,808 during the three and nine months ended September 30, 2022, respectively, as the fair market value decreased from the purchase value. No impairment of digital assets was recognized during the three and nine months ended September 30, 2021. The impairment of digital assets is presented as a non-cash operating expense within general and administrative on the consolidated statements of operations and comprehensive loss. The fair market value of such digital assets held as of September 30, 2022 was $71,455.

The Company performs its annual impairment tests of goodwill as of October 1 of each year, or more frequently, if certain indicators are present. As of September 30, 2022 the Company determined that no impairment to goodwill existed.