Annual report pursuant to Section 13 and 15(d)

Goodwill and Purchased Identifiable Intangible Assets

v3.19.1
Goodwill and Purchased Identifiable Intangible Assets
 12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
Note 6. Goodwill and Purchased Identifiable Intangible Assets
 
Goodwill
 
In May 2018, the Company ceased all professional MMA promotion operations and committed to an exit/disposal plan of the promotion businesses. In September 2018, the Company ceased all sports management operations and extended its exit/disposal plan to SuckerPunch. In conjunction with the discontinued operations, $
5,963,537
of goodwill was classified as a component of long term assets - discontinued operations within the December 31, 2017, consolidated balance sheet, which was subsequently impaired during 2018 and is included as a component of net loss from discontinued operations, net of tax. See Note 4 - Discontinued Operations.
  
Intangible Assets
 
During the second quarter of 2018, the Company recorded an intangible impairment charge of $231,037 related to the write down of the ticketing software and promoter relationships acquired intangible assets from the CageTix business acquisitions, which is included as a component of operating expenses for the
year ended December 31, 2018.
 
During the second quarter of 2018, the Company recorded an intangible impairment charge of $182,546 related to the write down of the trademark and brand, fighter contracts, and sponsor relationships acquired intangible assets from the SuckerPunch business acquisitions, which is included as a component of net loss from discontinued operations, net of tax, for the
year ended December 31, 2018
.
 
Identified intangible assets consist of the following:
 
 
 
 
 
December 31
, 2018
 
 
December 31, 2017
 
Intangible assets
 
Useful Life
 
Gross
Assets
 
 
Accumulated
Amortization
 
 
Impairment
 
 
Net
 
 
Gross
Assets
 
 
Accumulated
Amortization
 
 
Net
 
Ticketing software
 
3 years
 
$
90,000
 
 
$
(52,500
)
 
$
(37,500
) 
 
$
—
 
 
$
90,000
 
 
$
(37,500
)
 
$
52,500
 
Promoter relationships
 
6 years
 
 
277,099
 
 
 
(83,562
)
 
 
(193,537
) 
 
 
—
 
 
 
277,099
 
 
 
(57,729
)
 
 
219,370
 
Total intangible assets
 
 
 
$
367,099
 
 
$
(136,062
)
 
$
(231,037
) 
 
$
—
 
 
$
367,099
 
 
$
(95,229
) 
 
$
271,870
 
 
Amortization expense for the year ended December 31, 2018 and 2017, was 
$40,833 and $76,183, respectively.
 
In May 2018,
the Company ceased all professional MMA promotion operations and committed to an exit/disposal plan of the promotion business. On September 13, 2018, the Company ceased operations of the Sports Management business and began a plan of disposition. In conjunction with the discontinued operations
, $2.6 million of intangible assets, net, were classified as long term assets - discontinued operations within the December 31, 2017, consolidated balance sheet, which were disposed of during the second quarter of 2018.
 
As of December 31, 2018, there were no intangible assets.