Intangible assets as of December 31, 2023, and December 31, 2022, are as follows:

 

 

 

 

 

On July 31, 2015, Captivision Korea granted exclusive distribution rights for Captivision Korea’s products for 10 years to Global, a former related party of Captivision Korea. Captivision Korea received USD 8,571,404 from Global as consideration for granting exclusive distribution rights. Per the agreement, if Global regrants this distribution rights to another party, Captivision Korea is subject to receive 50% of the consideration received from another party for regranting the distribution rights.

On March 7, 2019, the agreement between Captivision Korea and Global was amended so that Captivision Korea can distribute the Company’s products. As a result, Captivision Korea acquired 50% of the consideration received from Global in connection with the original agreement made on July 31, 2015, for this distribution right as intangible assets. The amount paid to is being amortized by the Company using the straight-line method over the remaining period of the original contract term.

In 2022, the Company received a valuation on USD 1,593,310 of Captivision Korea’s distribution right by third party, and it was concluded that the recoverable amount exceeded the book balance as of December 31, 2022. However, after 2022, the management held an internal discussion and determined that there is no foreseeable potential for future benefits from this asset. Consequently, management decided to write off the remaining balance of the exclusive distribution rights as of December 31, 2023, following an assessment that determined its to be zero.

On June 15, 2016, exclusive distribution and license agreement was made for 10 years between Global, a former related party of Captivision Korea, and America. Per the agreement, in consideration for the exclusive territorial distribution rights and license granted to, America paid a royalty fee of USD 8,571,404. Per the exclusive distribution right agreement made between Captivision Korea and Global, though, 50% of the consideration received when regranting the exclusive distribution right to another party should be paid to Captivision Korea. Accordingly, 50% of the consideration received from America was paid to Captivision Korea by Global after finalizing the exclusive distribution contract with America.

In 2022, the Company received a valuation on USD 3,120,320 of America’s distribution right by third party, and it was concluded that the recoverable amount exceeded the book balance as of December 31, 2022. However, since this assessment, management held internal discussion and determined that there’s no foreseeable potential for future benefits from this asset. Consequently, management decided to write off the remaining balance of the exclusive distribution rights as of December 31, 2023, following an assessment that determined its to be zero.

On March 27, 2017, Global and Europe made exclusive distribution and license agreements for an initial term of 10 years. For the exclusive territorial distribution rights and license granted, Europe paid USD 2,762,760, and it is being amortized using the straight-line method over a useful life of 10 years. As in the case when exclusive distribution contract made with America, 50% of the consideration received from Europe was paid by Global to Captivision Korea, accordingly.

 

 

In 2022, the Company received a valuation on USD 1,131,886 of Europe’s distribution right by a third party, and it was concluded that the recoverable amount exceeded the book balance as of December 31, 2022. However, since this assessment, management held internal discussions and determined that there’s no foreseeable potential for future benefits from this asset. , management decided to write off the remaining balance of the exclusive distribution rights as of December 31, 2023, following an assessment that determined its to be zero.