Company: GMER
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001868
Chunk: 3

Company: GOOD GAMING, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 3
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, or corroborated by, observable market data.

Level
3

Level
3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement
of the fair value of the assets or liabilities.

The
carrying values of all of our other financial instruments, which include accounts payable and accrued liabilities, and amounts due to
related parties approximate their current fair values because of their nature and respective maturity dates or durations.

Advertising
Expenses

Advertising
expenses are included in general and administrative expenses in the Statements of Operations and are expensed as incurred. The Company
incurred $128,511 and $109,156 in advertising and promotion expenses in the years ended December 31, 2024 and 2023, respectively.

Revenue
Recognition

Revenue
is recognized in accordance with ASC 606. The Company performs the following five steps: (i) identify the contract(s) with a customer,
(ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price
to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation.
The Company applies the five-step model to arrangements that meet the definition of a contract under Topic 606, including when it is
probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.
At contract inception, once the contract is determined to be within the scope of Topic 606, the Company evaluates the goods or services
promised within each contract related performance obligation and assesses whether each promised good or service is distinct. The Company
recognizes as revenue, the amount of the transaction price that is allocated to the respective performance obligation when (or as) the
performance obligation is satisfied. Revenues primarily include revenues from microtransactions. Microtransaction revenues are derived
from selling virtual goods to the Company’s players. Proceeds from the sales of virtual goods directly are recognized as revenues
when a player uses the virtual goods.

Recent
Accounting Pronouncements

The
Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on
the not consolidated financial statements unless otherwise disclosed. The Company does not believe that there are any other new accounting
pronouncements that have been issued that might have a material impact on its financial position or results of operations.

3.
Digital Assets

In
2021, the