Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS, NET

v3.22.1
INTANGIBLE ASSETS, NET
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS, NET

7. INTANGIBLE ASSETS, NET

 

GOODWILL

 

A rollforward of goodwill is as follows:

 

                 
    Year Ended  
(in thousands)  

December 31, 2021

    

December 31, 2020

  
Beginning balance   $ 8,591     $ 8,568  
Acquisition of Pie Squared Holdings     51       —  
Sale of Hooters UK     (820 )     —  
Foreign currency translation gain (loss)     (12 )     23  
Ending balance   $ 7,810     $ 8,591  

 

 

Amergent Hospitality Group, Inc. and Subsidiaries

Notes to the Consolidated and Combined Financial Statements

 

On October 8, 2021, the Company, through its wholly-owned UK subsidiary, Chanticleer UK Group Limited, sold West End Wings LTD, the Company’s Hooters restaurant located in Nottingham, England, to Hard Four Consultancy Limited (UK) for the final purchase price of £0.4 million (approximately $0.6 million). The Company recognized a gain on sale of subsidiary of $0.1 million in the consolidated and combined statement of operations for the year ended December 31, 2021.

 

OTHER INTANGIBLE ASSETS

 

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

 

(in thousands)       December 31, 2021     December 31, 2020  
Trademark, Tradenames:                    
American Roadside Burger   10 years   $ 561     $ 1,787  
BGR: The Burger Joint   Indefinite     739       739  
Little Big Burger   Indefinite     1,550       1,550  
PizzaRev   5 years     410       —  
          3,260       4,076  
Acquired Franchise Rights:                    
BGR: The Burger Joint   7 years     828       828  
PizzaRev   5 years     410       —  
          1,238       828  
Franchise License Fees:                    
Hooters Pacific NW   20 years     —       74  
Hooters UK   5 years     —       11  
          —       85  
Total intangibles at cost         4,498       4,989  
Accumulated amortization         (1,369 )     (1,945 )
Intangible assets, net       $ 3,129     $ 3,044  

 

Based on an analysis of the recoverability of the carrying value at each quarter end during 2021 and 2020, including December 31, 2021 and 2020, an impairment charge of approximately $0.3 million was recorded to trademark/tradenames for ABC: American Burger Company during the year ended December 31, 2021, and an impairment charge of approximately $0.2 million was recorded to trademark/tradenames for BRG: The Burger Joint during the year ended December 31, 2020. No other intangible assets were impaired during the years ended December 31, 2021 or 2020.

 

Amortization of intangible assets was $0.4 million for each of the years ended December 31, 2021 and 2020. Amortization expense for the next five years is as follows (in thousands):

 

Year ended December 31:        
2022   $ 238  
2023     164  
2024     164  
2025     164  
2026     110  
Total   $ 840  

 

 

Amergent Hospitality Group, Inc. and Subsidiaries

Notes to the Consolidated and Combined Financial Statements