| Significant Accounting Policies | Note
2 – Significant Accounting Policies Basis
of Presentation and Principles of Consolidation The
accompanying consolidated financial statements have been derived from the accounting records of AESE and its consolidated subsidiaries.
All significant intercompany balances have been eliminated in the consolidated financial statements. The consolidated financial statements
have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and pursuant to
the accounting rules and regulations of the United States Securities and Exchange Commission (“SEC”). Use
of Estimates Preparation
of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the
reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the financial
statements. The Company’s significant estimates used in these financial statements include, but are not limited to, the valuation
and carrying amount of intangible assets, accounts receivable reserves, the valuation of investments, stock-based compensation, warrants
and deferred tax assets, as well as the recoverability and useful lives of long-lived assets, including intangible assets and property
and equipment. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company
and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates
and could cause actual results to differ from those estimates. Cash
and Cash Equivalents All
short-term investments of the Company that have a maturity of three months or less when purchased are considered to be cash equivalents.
There were no cash equivalents as of December 31, 2021 or 2020. Restricted
Cash Restricted
cash consists of cash held in an escrow account to be utilized for various approved strategic initiatives and esports event programs
pursuant to an agreement with Brookfield Property Partners. See Note 12 – Commitments and Contingencies, Investment Agreements. Accounts
Receivable Accounts
receivable are carried at their contractual amounts. Management establishes an allowance for doubtful accounts based on its historic
loss experience and current economic conditions. Losses are charged to the allowance when management deems further collection efforts
will not produce additional recoveries. As of December 31, 2021 and 2020, there was no allowance for doubtful accounts. Property
and Equipment Property
and equipment are stated at cost, net of accumulated depreciation using the straight-line method over their estimated useful lives once
the asset is placed in service. Leasehold improvements are amortized over the lesser of (a) the useful life of the asset; or (b) the
remaining lease term (including renewal periods that are reasonably assured). Expenditures for maintenance and repairs which do not extend
the economic useful life of the related assets are charged to operations as incurred, and expenditures which extend the economic life
are capitalized. When assets are retired or otherwise disposed of, the costs and related accumulated depreciation or amortization are
removed from the accounts and any gain or loss on disposal is recognized in the statement of operations for the respective period. The
estimated useful lives of property and equipment are as follows:
Office
equipment 3 - 5 years
Computer
equipment 3 - 5 years
Production
equipment 5 years
Furniture
and fixtures 3 - 5 years
Esports
gaming truck 5 years
Leasehold
improvements 10 years Intangible
Assets The
Company’s intangible assets consist of the Allied Esports trademarks, which are being amortized over a useful life of 10 years.
Intangible assets with indefinite lives are not amortized but are evaluated at least annually for impairment and more often whenever
changes in facts and circumstances may indicate that the carrying value may not be recoverable. Impairment
of Long-Lived Assets The
Company reviews for the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. The Company measures the carrying amount of the asset against the estimated undiscounted future cash
flows associated with it. Should the sum of the expected future net cash flows be less than the carrying value of the asset being evaluated,
an impairment loss would be recognized for the amount by which the carrying value of the asset exceeds its fair value. The evaluation
of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These
assumptions require significant judgment and actual results may differ from assumed and estimated amounts. During
the year ended December 31, 2020, the Company recognized an impairment of $6,138,631 related to certain investments, and an impairment
of $5,595,557 related to property and equipment, due to management’s determination that the future cash flows from these assets
are not expected to be sufficient to recover their carrying value. No impairment costs were recognized during the year ended December
31, 2021. Warrant
Liabilities Entities
must consider whether to classify contracts that may be settled in its own stock, such as warrants, as equity of the entity or as an
asset or liability. If an event that is not within the entity’s control could require net cash settlement, then the contract should
be classified as an asset or a liability rather than as equity.
● Management
has determined that its publicly traded warrants (the “public warrants”) are of a form that qualify for equity classification.
● Management
has determined that the common stock purchase warrants issued by the Company on June 8, 2020 in connection with the issuance of convertible
notes (the “convertible note warrants”) are of a form that qualify for equity classification.
● Management
has determined that the warrants previously issued to the Company’s sponsor (the “Sponsor Warrants”) contain provisions
that change depending on who holds the sponsor warrant. If the Sponsor Warrants are held by someone other than the initial purchasers
or their permitted transferees, the Sponsor Warrants will be redeemable by the Company and exercisable by such holders on the same
basis as the public warrants. This feature precludes the Sponsor Warrants from being indexed to the Company’s common stock,
and thus the Sponsor Warrants are classified as a liability measured at fair value, with changes in fair value each period reported
in earnings. As
of December 31, 2021 and 2020, the fair value of warrant liabilities related to our Sponsor Warrants totaled $3,200 and $3,000, respectively,
which is included in accrued expenses and other current liabilities in the accompanying consolidated balance sheet. See Note 7 –
Accrued Expenses and Other Current Liabilities. Fair
Value of Financial Instruments The
Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair Value Measurements and
Disclosures” (“ASC 820”). ASC
820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the
principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement
date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize
the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level
1 - quoted prices in active markets for identical assets or liabilities. Level
2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level
3 - inputs that are unobservable (for example, cash flow modeling inputs based on assumptions). The
carrying amounts of the Company’s financial instruments, such as accounts receivable, accounts payable and accrued liabilities
approximate fair value due to the short-term nature of these instruments. The
Sponsor Warrants are carried at fair value as of December 31, 2021 and 2020. The Sponsor Warrants are valued using level 3 inputs. The
fair value of the Sponsor Warrants is estimated using the Black-Scholes option pricing method. Significant level 3 inputs used to calculate
the fair value of the Sponsor Warrants include the share price on the valuation date, expected volatility, expected term and the risk-free
interest rate. The
following is a roll forward of the Company’s Level 3 instruments:
Balance, January 1, 2020 $ 3,000
Change in fair value of sponsor warrants -
Balance, December 31, 2020 3,000
Change in fair value of sponsor warrants 200
Balance, December 31, 2021 $ 3,200 The
key inputs into the Black-Scholes model at the relevant measurement dates were as follows:
December 31,
Input 2021 2020
Risk-free
rate 0.97 % 0.27 %
Remaining
term in years 2.61 3.61
Expected
volatility 46.0 % 42.0 %
Exercise
price $ 11.50 $ 11.50
Fair
value of common stock $ 1.81 $ 1.58 Income
Taxes The
Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that have been included in the
financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the
financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are
expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than
not that the assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in
the statements of operations in the period that includes the enactment date. The
Company recognizes the tax benefit from an uncertain income tax position only if it is more likely than not that the tax position will
be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in
the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood
of being realized upon ultimate settlement by examining taxing authorities. The
Company’s policy is to recognize interest and penalties accrued on uncertain income tax positions in interest expense in the Company’s
statements of operations. As of December 31, 2021 and 2020, the Company had no liability for unrecognized tax benefits. The Company does
not expect the unrecognized tax benefits to change significantly over the next 12 months. Commitments
and Contingencies Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable
that a liability has been incurred and the amount of the assessment can be reasonably estimated. Net
Loss per Common Share Basic
loss per common share is computed by dividing net loss attributable to the Company by the weighted average number of common shares outstanding
during the period. Diluted loss per common share is computed by dividing net loss attributable to common stockholders by the weighted
average number of common shares outstanding, plus the impact of common shares, if dilutive, resulting from the potential (a) exercise
of outstanding stock options and warrants; (b) the conversion of convertible instruments; and (c) vesting of restricted stock awards. The
following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have
been anti-dilutive:
As
of
2021 2020
Restricted
common shares 80,000 199,143
Options 2,415,000 2,430,000
Warrants 20,091,549 20,091,549
Convertible
debt - 439,811 (1)
Equity
purchase options 600,000 600,000
Contingent
consideration shares (2) 192,308 269,231
23,378,857 24,029,734 (1) Common stock equivalents associated with convertible debt were calculated based on the fixed conversion price in effect for voluntary holder conversions; however, for certain convertible notes there is a variable conversion price in effect under certain scenarios that is equal to 87% of lowest daily volume weighted average price over the prior ten days, subject to a $0.734 floor price. If the applicable convertible note principal and guaranteed interest were all converted at the floor price, the potentially dilutive shares related to convertible debt would be 1,154,789 shares. (2) Holders who elected to convert their Bridge Note into common stock are entitled to receive contingent consideration shares equal to the product of (i) 3,846,153 shares, multiplied by (ii) that holder’s investment amount, divided by (iii) $100,000,000, if at any time within five years after the August 9, 2019 closing date, the last exchange-reported sale price of common stock trades at or above $13.00 for thirty (30) consecutive calendar days. Revenue
Recognition To
determine the proper revenue recognition method, the Company evaluates each of its contractual arrangements to identify its performance
obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The majority
of the Company’s contracts have a single performance obligation because the promise to transfer the individual good or service
is not separately identifiable from other promises within the contract and is therefore not distinct. Some of the Company’s contracts
have multiple performance obligations, primarily related to the provision of multiple goods or services. For contracts with more than
one performance obligation, the Company allocates the total transaction price in an amount based on the estimated relative standalone
selling prices underlying each performance obligation. The
Company recognizes revenue from continuing operations primarily from the following sources: In-person
revenue The
Company’s in-person revenue is comprised of event revenue, sponsorship revenue, merchandising revenue and other revenue. Event
revenue is generated through Allied Esports events held at the Company’s esports properties. Event revenues recognized from the
rental of the Allied Esports arena and gaming trucks are recognized at a point in time when the event occurs. In-person revenue also
includes revenue from ticket sales, admission fees and food and beverage sales for events held at the Company’s esports properties. Ticket
revenue is recognized at the completion of the applicable event. Point of sale revenues, such as food and beverage, gaming and merchandising
revenues, are recognized when control of the related goods are transferred to the customer. The
Company also generates sponsorship revenues for naming rights for, and rental of, the Company’s arena and gaming trucks. Sponsorship
revenues from naming rights of the Company’s esports arena and from sponsorship arrangements are recognized on a straight-line
basis over the contractual term of the agreement. The Company records deferred revenue to the extent that payment has been received for
services that have yet to be performed. In-person
revenue was comprised of the following for the years ended December 31, 2021 and 2020:
For
the
December 31,
2021 2020
Event
revenue $ 2,459,613 $ 574,536
Sponsorship
revenue 779,487 1,730,198
Food
and beverage revenue 446,202 310,826
Ticket
and gaming revenue 480,519 349,526
Merchandising
revenue 35,338 22,209
Other
revenue 100 1,068
Total
in-person revenue $ 4,201,259 $ 2,988,363 Multiplatform
revenue The
Company’s multiplatform content revenue is comprised of $754,781 and $222,442 as of December 31, 2021 and 2020, respectively, of
distribution revenue. Distribution revenue is generated primarily through the distribution of content to online channels. Any advertising
revenue earned by online channels is shared with the Company. The Company recognizes online advertising revenue at the point in time
when the advertisements are placed in the video content. Revenue
recognition The
following table summarizes our revenue recognized under ASC 606 in our consolidated statements of operations:
For
the
December 31,
2021 2020
Revenues
Recognized at a Point in Time:
Event
revenue $ 2,459,613 $ 574,536
Distribution
revenue 754,781 222,442
Food
and beverage revenue 446,202 310,826
Ticket
and gaming revenue 480,519 349,526
Merchandising
revenue 35,338 22,209
Other
revenue 100 1,068
Total
Revenues Recognized at a Point in Time 4,176,553 1,480,607
Revenues
Recognized Over a Period of Time:
Sponsorship
revenue 779,487 1,730,198
Total
Revenues Recognized Over a Period of Time 779,487 1,730,198
Total
Revenues $ 4,956,040 $ 3,210,805 The
timing of the Company’s revenue recognition may differ from the timing of payment by its customers. A receivable is recorded when
revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the
provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. As of December
31, 2021 and 2020, the Company had contract liabilities of $141,825 and $57,018, respectively, which is included in deferred revenue
on the balance sheet. As
of December 31, 2021, all continuing operations’ performance obligations in connection with contract liabilities included within
deferred revenue on the prior year consolidated balance sheet have been satisfied. The Company expects to satisfy the remaining performance
obligations related to its December 31, 2021 deferred revenue balance within the next twelve months. During the years ended December
31, 2021 and 2020, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. Stock-Based
Compensation The
Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award on
the date of grant. The fair value amount is then recognized over the period during which services are required to be provided in exchange
for the award, usually the vesting period. The estimation of stock-based awards that will ultimately vest requires judgment, and to the
extent actual results or updated estimates differ from original estimates, such amounts are recorded as a cumulative adjustment in the
period that the estimates are revised. The Company accounts for forfeitures as they occur. Advertising
Costs Advertising
costs from continuing operations are charged to operations in the year incurred and totaled $127,612 and $97,840 for the years ended
December 31, 2021 and 2020, respectively. Concentration
Risks Financial
instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution
which, at times, may exceed Federal Deposit Insurance Corporation (“FDIC”) insured limits. The Company has not experienced
any losses in such accounts, periodically evaluates the creditworthiness of the financial institutions and has determined the credit
exposure to be negligible. During
the years ended December 31, 2021 and 2020, 4% and 10%, respectively, of the Company’s revenues from continuing operations were
from customers in foreign countries. During
the year ended December 31, 2021, the Company’s three largest customers accounted for 20%, 15%, and 13% of the Company’s
consolidated revenues from continuing operations. During the year ended December 31, 2020, the Company’s two largest customer
accounted for 41% and 13% of the Company’s consolidated revenues from continuing operations. As of December 31, 2021, the Company’s
four largest customers represented 31%, 29%, 15% and 10%, respectively, of the Company’s accounts receivable. As of December 31,
2020, a single customer represented 74% of the Company’s accounts receivable from continuing operations. Foreign
Currency Translation The Company’s reporting
currency is the United States Dollar. The functional currencies of the Company’s operating subsidiaries are their local currencies
(United States Dollar and Euro). Euro-denominated assets and liabilities are translated into the United States Dollar using the exchange
rate at the balance sheet date (1.1342 and 1.2264 at December 31, 2021 and 2020, respectively), and revenue and expense accounts are translated
using the weighted average exchange rate in effect for the period (1.1830 and 1.1414 for the years ended December 31, 2021 and 2020, respectively).
Resulting translation adjustments are made directly to accumulated other comprehensive income (loss). Losses of $53,538 and $0 arising
from exchange rate fluctuations on transactions denominated in a currency other than the reporting currency for the years ended December
31, 2021 and 2020, respectively, are recognized in operating results in the consolidated statements of operations. The Company engages
in foreign currency denominated transactions with customers and suppliers, as well as between subsidiaries with different functional currencies. Subsequent
Events The
Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the
evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure
in the consolidated financial statements, except as disclosed. CARES
Act On
March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The
CARES Act, amongst other things, includes provisions relating to refundable payroll tax credits, deferment of employer social security
payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations
and technical corrections to tax depreciation methods for qualified improvement property. Pursuant to Accounting Standards Codification
Topic (“ASC 740”), the Company recognizes the tax effects of new tax legislation upon enactment. Accordingly, the CARES Act
was effective beginning in the quarter ended March 31, 2020. The new tax provisions outlined in the CARES Act have not had a material
impact on the Company’s consolidated financial statements. Discontinued
Operations The
assets and liabilities of WPT at December 31, 2020 are classified in the accompanying Consolidated Balance Sheets as “Current assets
of discontinued operations,” and “Current liabilities of discontinued operations”. The results of operations of WPT
for the period from January 1 through July 12, 2021 and for the year ended December 31, 2020 are included in “(Loss) income from
discontinued operations, net of tax provision” in the accompanying Consolidated Statements of Operations. Reclassifications Certain
prior year balances have been reclassified in order to conform to current year presentation. These reclassifications had no effect on
previously reported results of operations or loss per share. Recently
Issued Accounting Pronouncements In
February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842).” ASU 2016-02
requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement
of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use
the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy
election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required
to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. This amendment
will be effective for private companies and emerging growth companies for fiscal years beginning after December 15, 2021, and interim
periods within fiscal years beginning after December 15, 2022. The FASB issued ASU No. 2018-10 “Codification Improvements to Topic
842, Leases” and ASU No. 2018-11 “Leases (Topic 842) Targeted Improvements” in July 2018, and ASU No. 2018-20 “Leases
(Topic 842) - Narrow Scope Improvements for Lessors” in December 2018. ASU 2018-10 and ASU 2018-20 provide certain amendments that
affect narrow aspects of the guidance issued in ASU 2016-02. ASU 2018-11 allows all entities adopting ASU 2016-02 to choose an additional
(and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and
recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects
that the adoption of this ASU will have a material impact on the Company’s consolidated financial statements, primarily as the
result of recording right-of-use assets and lease liability obligations for its current operating lease. In
June 2016, the FASB issued ASU No. 2016-13 “Financial Instruments - Credit Losses (Topic 326)” and also issued subsequent
amendments to the initial guidance under ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively Topic 326). Topic 326 requires the measurement
and recognition of expected credit losses for financial assets held at amortized cost. This replaces the existing incurred loss model
with an expected loss model and requires the use of forward-looking information to calculate credit loss estimates. The Company will
be required to adopt the provisions of this ASU on January 1, 2023, with early adoption permitted for certain amendments. Topic 326 must
be adopted by applying a cumulative effect adjustment to retained earnings. The adoption of Topic 326 is not expected to have a material
impact on the Company’s consolidated financial statements or disclosures. In
February 2020, the FASB issued ASU No. 2020-02, Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842) – Amendments
to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date (“ASU 2020-02”)
which provides clarifying guidance and minor updates to ASU No. 2016-13 – Financial Instruments – Credit Loss (Topic 326)
(“ASU 2016-13”) and related to ASU No. 2016-02 - Leases (Topic 842). ASU 2020-02 amends the effective date of ASU 2016-13,
such that ASU 2016-13 and its amendments will be effective for the Company for interim and annual periods in fiscal years beginning after
December 15, 2022. The adoption of ASU 2016-13 is not expected to have a material impact on the Company’s consolidated financial
statements or disclosures. In
August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—
Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own
Equity, to clarify the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in
this update reduce the number of accounting models for convertible debt instruments and convertible preferred stock by removing the cash
conversion model and the beneficial conversion feature model. Limiting the accounting models will result in fewer embedded conversion
features being separately recognized from the host contract. Convertible instruments that continue to be subject to separation models
are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition
of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued
with substantial premiums for which the premiums are recorded as paid-in-capital. In addition, this ASU improves disclosure requirements
for convertible instruments and earnings-per-share guidance. The ASU also revises the derivative scope exception guidance to reduce form-over-substance-based
accounting conclusions driven by remote contingent events. The amendments in this update are effective for the Company in fiscal years
beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption will be permitted, but no earlier than
for fiscal years beginning after December 15, 2020. The adoption of ASU 2020-06 is not expected to have a material impact on the Company’s
consolidated financial statements or disclosures. On
May 3, 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)
2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation
(Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for
Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This new standard provides clarification and
reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options
(such as warrants) that remain equity classified after modification or exchange. This standard is effective for fiscal years beginning
after December 15, 2021, including interim periods within those fiscal years. Issuers should apply the new standard prospectively to
modifications or exchanges occurring after the effective date of the new standard. Early adoption is permitted, including adoption in
an interim period. If an issuer elects to early adopt the new standard in an interim period, the guidance should be applied as of the
beginning of the fiscal year that includes that interim period. The Company does not expect the adoption of this standard to have a material
effect on the Company’s consolidated financial statements. In
October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities
from Contracts with Customers, which requires an acquirer in a business combination to recognize and measure contract assets and contract
liabilities in accordance with Accounting Standards Codification Topic 606. ASU 2021-08 is effective for fiscal years beginning
after December 15, 2022 and early adoption is permitted. While the Company is continuing to assess the timing of adoption and the potential
impacts of ASU 2021-08, it does not expect ASU 2021-08 will have a material effect, if any, on its consolidated financial
statements. Recently
Adopted Accounting Pronouncements In
March 2019, the FASB issued ASU 2019-02, which aligns the accounting for production costs of episodic television series with the accounting
for production costs of films. In addition, ASU 2019-02 modifies certain aspects of the capitalization, impairment, presentation and
disclosure requirements in Accounting Standards Codification (“ASC”) 926-20 and the impairment, presentation and disclosure
requirements in ASC 920-350. This ASU must be adopted on a prospective basis and is effective for annual periods beginning after December
15, 2020, including interim periods within those years, with early adoption permitted. This standard was adopted on January 1, 2021 and
did not have a material impact on the Company’s consolidated financial statements or disclosures. |
