| Schedule of Goodwill |
Goodwill consists of the
following:
| |
|
March 31, 2018 |
|
|
December 31, 2017 |
|
| Hooters Full Service |
|
$ |
2,219,771 |
|
|
$ |
4,703,203 |
|
| Better Burgers Fast Casual |
|
|
7,448,848 |
|
|
|
7,448,848 |
|
| Just Fresh Fast Casual |
|
|
495,755 |
|
|
|
495,755 |
|
| |
|
$ |
10,164,374 |
|
|
$ |
12,647,806 |
|
|
| Summary of Changes in Carrying Amount of Goodwill |
The changes in the carrying
amount of goodwill are summarized as follows:
| |
|
March 31, 2018 |
|
|
December 31, 2017 |
|
| Beginning Balance |
|
$ |
12,647,806 |
|
|
$ |
12,405,770 |
|
| Acquisitions |
|
|
- |
|
|
|
- |
|
| Impairment |
|
|
(2,495,375 |
) |
|
|
- |
|
| Foreign currency translation (loss) gain |
|
|
11,943 |
|
|
|
242,036 |
|
| Ending Balance |
|
$ |
10,164,374 |
|
|
$ |
12,647,806 |
|
|
| Schedule of Other Intangible Assets |
Other intangible assets, consisting of franchise
costs, trademarks and tradenames, is summarized by location as follows:
| |
|
Estimated
Useful Life
|
|
March 31, 2018 |
|
|
December 31, 2017 |
|
| Trademark, Tradenames: |
|
|
|
|
|
|
|
|
|
|
| Just Fresh |
|
10 years |
|
$ |
1,010,000 |
|
|
$ |
1,010,000 |
|
| American Roadside Burger |
|
10 years |
|
|
1,786,930 |
|
|
|
1,786,930 |
|
| BGR: The Burger Joint |
|
Indefinite |
|
|
1,430,000 |
|
|
|
1,430,000 |
|
| Little Big Burger |
|
Indefinite |
|
|
1,550,000 |
|
|
|
1,550,000 |
|
| |
|
|
|
|
5,776,930 |
|
|
|
5,776,930 |
|
| Acquired Franchise Rights |
|
|
|
|
|
|
|
|
|
|
| BGR: The Burger Joint |
|
7 years |
|
|
1,056,000 |
|
|
|
1,056,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Franchise License Fees: |
|
|
|
|
|
|
|
|
|
|
| Hooters South Africa |
|
20 years |
|
|
285,889 |
|
|
|
273,194 |
|
| Hooters Pacific NW |
|
20 years |
|
|
74,507 |
|
|
|
74,507 |
|
| Hooters UK |
|
5 years |
|
|
- |
|
|
|
13,158 |
|
| |
|
|
|
|
360,396 |
|
|
|
360,859 |
|
| Total Intangibles at cost |
|
|
|
|
7,193,326 |
|
|
|
7,193,789 |
|
| Accumulated amortization |
|
|
|
|
(1,433,508 |
) |
|
|
(1,297,057 |
) |
| Intangible assets, net |
|
|
|
$ |
5,759,818 |
|
|
$ |
5,896,732 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Periods Ended |
|
| |
|
|
|
|
March 31, 2018 |
|
|
|
March 31, 2017 |
|
| Amortization expense |
|
|
|
$ |
133,588 |
|
|
$ |
75,776 |
|
|