Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS, NET

v3.22.2.2
INTANGIBLE ASSETS, NET
9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS, NET

8. INTANGIBLE ASSETS, NET

 

Goodwill

 

A roll forward of goodwill is as follows:

 

             
(in thousands)  

Nine months Ended

September 30, 2022

   

Year Ended

December 31, 2021

 
Beginning balance   $ 7,810     $ 8,591  
Acquisition of Pie Squared Holdings           51  
Sale of Hooters UK           (820 )
Foreign currency translation loss           (12 )
Ending balance   $ 7,810     $ 7,810  

 

The Company performed a qualitative assessment at September 30, 2022 based on the best judgment of management for the future of the reporting unit and on information known at the time of the assessment and determined that it was more likely than not that the fair value of its reporting unit exceeded the carrying amount and, therefore, a quantitative assessment was not deemed necessary, and no impairment was recorded to goodwill.

 

 

Other Intangible Assets

 

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

 

(in thousands)       September 30, 2022     December 31, 2021  
Trademark, Tradenames:                    
American Roadside Burger   10 years   $ 561     $ 561  
BGR: The Burger Joint   Indefinite     739       739  
Little Big Burger   Indefinite     1,550       1,550  
PizzaRev   5 years     410       410  
          3,260       3,260  
Acquired Franchise Rights:                    
BGR: The Burger Joint   7 years     828       828  
PizzaRev   5 years     410       410  
          1,238       1,238  
Total intangibles at cost         4,498       4,498  
Accumulated amortization         (1,566 )     (1,369 )
Intangible assets, net       $ 2,932     $ 3,129  

 

As of September 30, 2021, we performed an analysis of the recoverability of the carrying value of our intangible assets. Based on the analysis, an impairment charge of approximately $0.3 million was recorded to trademark/tradenames for ABC: American Burger Company for the nine months ended September 30, 2021, and is included in asset impairment charges in our condensed consolidated statements of operations. There were no indicators of impairment related to our intangible assets during the nine months ended September 30, 2022.

 

We recognized amortization expense of $0.1 million and $0.2 million during the three and nine months ended September 30, 2022, respectively, and $0.01 million and $0.3 million during the three and nine months ended September 30, 2021, respectively.

 

Amortization expense for the next five years is as follows (in thousands):

 

Year ending December 31:      
2022 (remaining three months)   $ 41  
2023     164  
2024     164  
2025     164  
2026     110  
 Amortization Expense, net   $ 643