Company: GMER
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010826
Chunk: 8

Company: GOOD GAMING, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 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 consolidated Statements of Operations and are expensed as incurred. The Company incurred $13,522 and $72,674 in advertising
and promotion expenses in the three months ended March 31, 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