| INTANGIBLE ASSETS |
NOTE 11 – INTANGIBLE ASSETS Intangible assets consist of game licenses, game software underlying intellectual property rights, game trademarks and other branding items. The Company amortizes the intangible assets over its useful life. The following tables reflect all the intangible assets presented on the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022: | | | | | | | | | | | | | | | | | March 31, 2023 | | | Gross | | | | | | | | | | | Weighted | | | Carrying | | Accumulated | | Impairment | | Net Book | | Average | | | Amount | | Amortization | | Loss | | Value | | Useful Life | License rights from related parties | | $ | 136,665,000 | | $ | (135,976,594) | | $ | — | | $ | 688,406 | | 3 - 5 years | License rights | | $ | 3,000,000 | | $ | (3,000,000) | | $ | — | | $ | — | | 5 years | Intangible assets - other: | | | | | | | | | | | | | | | Software | | $ | 51,784 | | $ | (51,784) | | $ | — | | $ | — | | 3 years | Trademark | | | 10,745 | | | (9,311) | | | — | | | 1,434 | | 12 years | In-progress patent | | | 270,886 | | | — | | | — | | | 270,886 | | | Total: | | $ | 333,415 | | $ | (61,095) | | $ | — | | $ | 272,320 | | |
| | | | | | | | | | | | | | | | | December 31, 2022 | | | Gross | | | | | | | | | | | Weighted | | | Carrying | | Accumulated | | Impairment | | Net Book | | Average | | | Amount | | Amortization | | Loss | | Value | | Useful Life | License rights from related parties | | $ | 136,665,000 | | $ | (135,280,942) | | $ | — | | $ | 1,384,058 | | 3 - 5 years | License rights | | $ | 3,000,000 | | $ | (3,000,000) | | $ | — | | $ | — | | 5 years | Intangible assets - other: | | | | | | | | | | | | | | | Software | | $ | 51,784 | | $ | (51,784) | | $ | — | | $ | — | | 3 years | Trademark | | | 10,745 | | | (9,110) | | | — | | | 1,635 | | 12 years | In-progress patent | | | 270,886 | | | — | | | — | | | 270,886 | | | Total: | | $ | 333,415 | | $ | (60,894) | | $ | — | | $ | 272,521 | | |
Amortization expense was $695,853 and $2,001,203 for the three months ended March 31, 2023 and 2022, respectively. These amounts are included in cost of revenues in the accompanying condensed consolidated statements of operations and comprehensive income (loss). The weighted average remaining useful life for which amortization expense will be recognized is 0.8 years as of March 31, 2023. Future amortization expense of intangible assets is as follows: | | | | Years ending December 31, | | Amount | Remainder of 2023 | | $ | 689,009 | 2024 | | | 804 | 2025 | | | 27 | 2026 | | | — | 2027 | | | — | Thereafter | | | 270,886 | | | $ | 960,726 |
|