IZEA Worldwide Inc

NOTE 4. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

Depreciation expense on property and equipment recorded in depreciation and amortization expense in the consolidated statements of operations and comprehensive loss was $26,557 and $18,786 for the three months ended March 31, 2024 and 2023, respectively.

NOTE 5. INTANGIBLE ASSETS

Definite Lived Intangible Assets

Definite lived intangible assets, net of amortization as of March 31, 2024 and 2023 totaled $1.8 million and $1.8 million, respectively.

Total intangible assets from the Company’s acquisitions and other acquired assets net of accumulated amortization thereon consists of the following:

As of March 31, 2024, future estimated amortization expense related to identifiable assets is set forth in the following schedule:

There wereno impairment charges associated with the Company’s identifiable intangible assets, other than digital assets, in the three months ended March 31, 2024, and 2023.

Amortization expense recorded in depreciation and amortization in the accompanying consolidated statements of operations and comprehensive loss was $49,287 and $0 for the three months ended March 31, 2024 and 2023, respectively.

Digital Assets

During the three months ended March 31, 2024 and 2023, the Company did not transact in digital assets nor did the Company impair the value of its digital assets.

As of March 31, 2024, the Company held$163,244 of Bitcoin and$105,820 of Ethereum with total holdings in digital assets of$269,064. The Company recorded a gain of$106,159 for the three months ended March 31, 2024.

The Company determines the fair value of its digital assets on a recurring basis in accordance with ASU 2023-8, Accounting for and Disclosure of Crypto Assets, based on quoted prices on the active exchange(s) that has been determined to be the principal market for such assets (Level 1 inputs). The Company performs an analysis monthly to identify whether the fair market value of the digital assets has changed. If the then-current carrying value of a digital asset is different from the fair value so determined, an adjustment in the amount equal to the difference between their carrying value and the price determined is recognized.

Gains and losses on digital assets are recognized within other income in the consolidated statements of operations and comprehensive loss in the period in which the change to fair market value is identified. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the digital assets sold immediately prior to sale.

The Company’s goodwill balance changed as follows:

The Company completed its acquisition of Hoozu on December 1, 2023. While Hoozu’s business is reported together with our Managed Services business, it will be treated as a separate component for Goodwill impairment testing.

The Company performs an annual impairment assessment of goodwill in October 1 each year or more frequently, if certain indicators are present. There wereno impairment charges associated with the Company’s Goodwill in the three months ended March 31, 2024 and 2023.