Quarterly report pursuant to Section 13 or 15(d)

Other Assets

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Other Assets
3 Months Ended
Mar. 31, 2020
Investments, All Other Investments [Abstract]  
Other Assets

Note 4 – Other Assets

 

The Company's other assets consist of the following:

 

 

    March 31,
2020
    December 31,
2019
 
Investment in ESA   $ 1,138,631     $ 1,138,631  
Investment in TV Azteca     5,000,000       3,500,000  
    $ 6,138,631     $ 4,638,631  

  

As of March 31, 2020, the Company owns a 25% non-voting membership interest in Esports Arena, LLC ("ESA") and ESA's wholly owned subsidiary. The investment is accounted for as a cost method investment since the Company does not have the ability to exercise significant influence over the operating and financial policies of ESA.

 

During January 2019, the Company contributed $1,238,631 to ESA, in order to fulfill the remainder of its funding commitment to ESA. The Company recognized an immediate impairment of $600,000 related to this funding.

 

The Company paid $3,500,000 to TV Azteca, S.A.B. DE C.V., a Grupo Salinas company ("TV Azteca") in August 2019, and on March 4, 2020 the Company paid an additional $1,500,000 to TV Azteca in connection with a Strategic Investment Agreement with TV Azteca in order to expand the Allied Esports brand into Mexico. See Note 9 – Commitments and Contingencies, Investment Agreements for additional details.