Annual report pursuant to Section 13 and 15(d)

Other Assets

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Other Assets
12 Months Ended
Dec. 31, 2020
Other Assets [Abstract]  
Other Assets

Note 6 – Other Assets

 

The Company’s other assets consist of the following:

 

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

 

As of December 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. During June 2020, the Company recorded an additional impairment charge in the amount of $1,138,631, related to its investment in ESA.

 

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. During December 2020, the Company recorded an impairment charge in the amount of $5,000,000, related to the investment in TV Azteca (See Note 14 – Commitments and Contingencies, Investment Agreements).