GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table provides the changes in the carrying amount of goodwill for the years ended December 31, 2022 and December 31, 2021:

	Goodwill, Gross		Accumulated Impairment		Goodwill, Net
Balance as of December 31, 2020	$	5,059	$	—	$	5,059
Additions from acquisitions	—		—		—
Measurement period adjustments	—		—		—
Balance as of December 31, 2021	5,059		—		5,059
Additions from acquisitions	42,074		—		42,074
Measurement period adjustments	—		—		—
Balance as of December 31, 2022	$	47,133	$	—	$	47,133

Intangible Assets

The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill:

	December 31, 2022						December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizable intangible assets:
Licenses	$	21,040	$	(7,962)	$	13,078	$	19,000	$	(1,245)	$	17,755
Acquired technology	15,003		(830)		14,173		—		—		—
Customer relationships	12,000		(600)		11,400		—		—		—
Trade names	2,740		(1,278)		1,462		1,240		(1,240)		—
	50,783		(10,670)		40,113		20,240		(2,485)		17,755
Nonamortizable intangible assets:
Marketing Agreement with MGM Resorts International	1,000		—		1,000		1,000		—		1,000
Total intangible assets	$	51,783	$	(10,670)	$	41,113	$	21,240	$	(2,485)	$	18,755

Intangible assets consist of trade names, long-term license agreements with various third parties, acquired technology, and customer relationships. The Company entered into agreements with N3TWORK Inc. and The Tetris Company, LLC pursuant to which the Company acquired the rights to develop and operate Tetris®-branded mobile games for an initial term through August 2024. The Company paid N3TWORK Inc. $13.0 million at closing and agreed to pay up to an additional $34.0 million subject to satisfaction of certain conditions, of which $8.0 million was an Advance Payment (as defined in Note 16—Commitments and Contingencies). In addition, the Company will pay royalties to The Tetris Company, LLC, the licensor of the rights.

The aggregate amortization expenses for amortizable intangible assets are reflected in “Depreciation and amortization” in the Consolidated Statements of Operations. During the years ended December 31, 2022, 2021, and 2020, amortization expenses were $8.2 million, $0.9 million, and $0.7 million, respectively. There were no impairment charges for intangible assets for the years ended December 31, 2022, 2021, and 2020.

As of December 31, 2022, the estimated annual amortization expenses for the years ending December 31, 2022 through 2027 is as follows:

Year Ending December 31,	Projected Amortization Expense
2023	$	13,137
2024	11,042
2025	5,551
2026	5,551
2027	4,120
Thereafter	712
Total	$	40,113