Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS, NET

v3.21.2
INTANGIBLE ASSETS, NET
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS, NET

6. INTANGIBLE ASSETS, NET

 

GOODWILL

 

A roll-forward of goodwill is as follows:

 

    Nine
Months Ended
September 30, 2021		    

Year Ended

December 31, 2020

  
Beginning balance   $ 8,591,149     $ 8,567,888  
Foreign currency translation gain     (11,768 )     23,261  
Goodwill acquired in acquisition     51,000       —  
Goodwill reclassified to noncurrent assets held for sale (Note 14)     (820,507 )     —  
Ending balance   $ 7,809,874     $ 8,591,149  

 

OTHER INTANGIBLE ASSETS

 

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

 

          September 30, 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  
PizzaRev     5 years       410,000       —  
              3,260,436       4,076,175  
Acquired Franchise Rights:                        
BGR: The Burger Joint     7 years       827,757       827,757  
PizzaRev     5 years       410,000       —  
                         
Franchise License Fees:                        
Hooters Pacific NW     20 years       —       74,507  
Hooters UK     5 years       —       11,001  
              —       85,508  
Total intangibles at cost             4,498,193       4,989,440  
Accumulated amortization             (1,225,397 )     (1,945,555 )
Intangible assets, net           $ 3,272,796     $ 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 September 30, 2021. Based on that analysis, an impairment charge of approximately $327,342 was recorded to trademarks/tradenames for ABC: American Burger Company during the nine months ended September 30, 2021. No intangible assets were impaired during the three months ended September 30, 2021. During the three and nine months ended September 30, 2020, an impairment charge of $246,751 was recorded to trademarks/tradenames for BRG: The Burger Joint. No other intangible assets were impaired as of September 30, 2020.

 

Amortization of intangible assets was $90,254 and $265,929, for the three and nine months ended September 30, 2021 and $92,174 and $274,699 for the three and nine months ended September 30, 2020, respectively.