Amergent Hospitality Group, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets, Net

Intangible Assets, Net

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

5. INTANGIBLE ASSETS, NET

GOODWILL

A roll-forward of goodwill is as follows:

	Three Months Ended March 31, 2021		Year Ended December 31, 2020
Beginning balance	$	8,591,149	$	8,567,888
Impairment		—		—
Foreign currency translation gain (loss)		6,769		23,261
Ending balance	$	8,597,918	$	8,591,149

OTHER INTANGIBLE ASSETS

Franchise and trademark/tradename intangible assets consist of the following:

		March 31, 2021			December 31, 2020
Trademark, Tradenames:
American Roadside Burger	10 years	$	561,191		$	1,786,930
BGR: The Burger Joint	Indefinite		739,245			739,245
Little Big Burger	Indefinite		1,550,000			1,550,000
			2,850,436			4,076,175
Acquired Franchise Rights:
BGR: The Burger Joint	7 years		827,757			827,757

Franchise License Fees:
Hooters Pacific NW	20 years		—			74,507
Hooters UK	5 years		12,073			11,001
			12,073			85,508
Total intangibles at cost			3,690,266			4,989,440
Accumulated amortization			(1,064,483	)		(1,945,555	)
Intangible assets, net		$	2,625,783		$	3,043,885

An analysis of the recoverability of the carrying value was performed at each quarter end beginning at the end of the first quarter of 2020 and continuing through March 31, 2021. Based on that analysis, an impairment charge of approximately $327,000 was recorded to trademarks/tradenames for ABC: American Burger Company during the three months ended March 31, 2021. No other intangible assets were impaired during the three months ended March 31, 2020.

Amortization of intangible assets was $90,760 and $90,959 for the three months ended ended March 31, 2021 and 2020, respectively.