Company: GMER
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023550
Chunk: 8

Company: GOOD GAMING, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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,522 and $90,886 in advertising and promotion expenses in the six months ended June 30, 2025 and 2024, 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 the sale of virtual goods to the Company’s players. Proceeds from the sales of virtual goods are directly recognized as revenues
when a player uses the virtual goods.

Recent
Accounting Pronouncements

The
Company has implemented all other new accounting pronouncements that are in effect. These pronouncements did not have any material impact
on the consolidated financial statements unless otherwise disclosed, and 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 Company has been working to create a new game called MicroBuddies™ that will be played online and will use blockchain
technology. Digital Asset prices have been volatile in the past and may continue to be so in the future, owing to a variety of risks
and uncertainties. Under current accounting rules, digital assets are considered indefinite-lived intangible assets. The Company needs
to recognize impairment charges if any decrease in their fair values, whereas the Company may not make any upward revisions for market
price increases until a sale. Thus, the carrying value represents the lowest fair value of the digital assets.

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