Galaxy Gaming, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill. A goodwill balance of $1,091,000 was created as a result of a transaction completed in October 2011 with Prime Table Games, LLC (“PTG”).

Other intangible assets, net. Other intangible assets, net consisted of the following at December 31, 2022 and 2021:


	December 31,			December 31,
	2022			2021
Patents	$	13,507,997		$	13,507,997
Customer relationships		14,040,856			14,040,856
Trademarks		2,880,967			2,880,967
Intellectual property		2,000,000			—
Non-compete agreements		660,000			660,000
Software		968,362			283,340
Other intangible assets, gross		34,058,182			31,373,160
Less: accumulated amortization		(20,152,071	)		(17,695,896	)
Other intangible assets, net	$	13,906,111		$	13,677,264

For the years ended December 31, 2022 and 2021, amortization expense related to the finite-lived intangible assets was $2,456,175 and $2,608,299 respectively.

In November 2011, the Company acquired certain intellectual property in exchange for contingent consideration to be paid in the future based on licensing by Galaxy Gaming of games utilizing the intellectual property. Effective September 30, 2022, the Company paid the seller of the contract assets $2,000,000 and terminated any obligation to pay contingent consideration after September 30, 2022. The actual payment of $2,000,000 was made on October 4, 2022.

Estimated future amortization expense is as follows:


Years Ended December 31,	Total
2023	$	1,841,923
2024		1,802,471
2025		1,795,313
2026		1,651,554
2027		1,603,634
Thereafter		5,211,216
Total	$	13,906,111