Playstudios Inc.
10/06/2026 | Press release | Distributed by Public on 10/06/2026 14:38
Material Impairments (Form 8-K)
Item 2.06 Material Impairments.
On September 30, 2026, PLAYSTUDIOS, Inc. (the "Company") made the decision to cease operation of the Company's product called Tetris Block Party. The Company has determined that this decision constituted an indicator of impairment during the third quarter of 2026. An analysis was performed and as a result, a reduction in the Tetris Block Party assets' useful life was deemed appropriate, and it was determined that the carrying value was not recoverable. In connection with these developments, on September 30, 2026 the Company concluded that it will recognize a non-cash, pre-tax impairment charge in the third quarter of 2026 in the range of $3.0 million to $3.5 million, in accordance with U.S. generally accepted accounting principles ("GAAP"). The impairment charge relates primarily to capitalized internal-use software development costs and acquired technology associated with Tetris Block Party. The Company expects to cease operation of Tetris Block Party in October 2026 and will reduce the estimated remaining useful life of any remaining Tetris Block Party assets accordingly.
The Company is also evaluating other potential accounting effects associated with these events, including the reassessment of contingent consideration and whether these events constitute a triggering event requiring an interim goodwill impairment assessment.
Management expects to conclude its assessment and finalize the impairment charges along with the assessment of the potential impact to income tax expense with the submission of its Quarterly Report on Form 10-Q for the period ending on September 30, 2026.
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