| Schedule of Goodwill |
Goodwill consist of the following:
| |
|
September 30,
2019 |
|
|
December 31, 2018 |
|
| Hooters Full Service |
|
$ |
3,049,783 |
|
|
$ |
3,335,862 |
|
| Better Burgers Fast Casual |
|
|
7,448,848 |
|
|
|
7,448,848 |
|
| Just Fresh Fast Casual |
|
|
- |
|
|
|
495,755 |
|
| |
|
$ |
10,498,631 |
|
|
$ |
11,280,465 |
|
|
Goodwill consist of the following at December
31, 2018 and 2017:
| |
|
December 31, 2018 |
|
|
December 31, 2017 |
|
| Hooters Full Service |
|
$ |
3,335,862 |
|
|
$ |
4,703,203 |
|
| Better Burgers Fast Casual |
|
|
7,448,848 |
|
|
|
7,448,848 |
|
| Just Fresh Fast Casual |
|
|
495,755 |
|
|
|
495,755 |
|
| |
|
$ |
11,280,465 |
|
|
$ |
12,647,806 |
|
|
| Summary of Changes in Carrying Amount of Goodwill |
The changes in the carrying amount of goodwill
are summarized as follows:
| |
|
September 30,
2019 |
|
|
December 31, 2018 |
|
| Beginning Balance |
|
$ |
11,280,465 |
|
|
$ |
12,647,806 |
|
| Impairment |
|
|
(495,755 |
) |
|
|
(1,191,111 |
) |
| Reclassification to held for sale |
|
|
(209,794 |
) |
|
|
- |
|
| Foreign currency translation gain (loss) |
|
|
(76,285 |
) |
|
|
(176,230 |
) |
| Ending Balance |
|
$ |
10,498,631 |
|
|
$ |
11,280,465 |
|
|
The changes in the carrying amount of goodwill
are summarized as follows:
| |
|
December 31, 2018 |
|
|
December 31, 2017 |
|
| Beginning Balance |
|
$ |
12,647,806 |
|
|
$ |
12,405,770 |
|
| Impairment |
|
|
(1,191,111 |
) |
|
|
- |
|
| Foreign currency translation gain (loss) |
|
|
(176,230 |
) |
|
|
242,036 |
|
| Ending Balance |
|
$ |
11,280,465 |
|
|
$ |
12,647,806 |
|
|
| Schedule of Other Intangible Assets |
Franchise and trademark/tradename intangible
assets consist of the following:
| |
|
|
|
September 30, 2019 |
|
|
December 31, 2018 |
|
| Trademark, Tradenames: |
|
|
|
|
|
|
|
|
|
|
| Just Fresh |
|
10 years |
|
$ |
868,345 |
|
|
$ |
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 |
|
| |
|
|
|
|
5,635,275 |
|
|
|
5,776,930 |
|
| Acquired Franchise Rights |
|
|
|
|
|
|
|
|
|
|
| BGR: The Burger Joint |
|
7 years |
|
|
827,757 |
|
|
|
827,757 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Franchise License Fees: |
|
|
|
|
|
|
|
|
|
|
| Hooters South Africa* |
|
20 years |
|
|
- |
|
|
|
234,242 |
|
| Hooters Pacific NW |
|
20 years |
|
|
74,507 |
|
|
|
89,507 |
|
| Hooters UK |
|
5 years |
|
|
11,976 |
|
|
|
12,422 |
|
| |
|
|
|
|
86,483 |
|
|
|
336,171 |
|
| Total Intangible assets at cost |
|
|
|
|
6,549,515 |
|
|
|
6,940,858 |
|
| Accumulated amortization |
|
|
|
|
(2,069,610 |
) |
|
|
(1,817,699 |
) |
| Intangible assets, net |
|
|
|
$ |
4,479,905 |
|
|
$ |
5,123,159 |
|
| |
|
|
|
Nine Months Ended |
|
| |
|
|
|
September 30,
2019 |
|
|
September 30,
2018 |
|
| Amortization expense |
|
|
|
$ |
353,974 |
|
|
$ |
404,054 |
|
| |
|
|
|
|
|
|
|
|
|
|
*Amounts are included in assets held for sale
as of September 30, 2019.
|
Franchise and trademark/tradename intangible
assets consist of the following at December 31, 2018 and December 31, 2017:
| |
|
Estimated Useful Life |
|
December 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 |
|
|
827,757 |
|
|
|
1,056,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Franchise License Fees: |
|
|
|
|
|
|
|
|
|
|
| Hooters South Africa |
|
20 years |
|
|
234,242 |
|
|
|
273,194 |
|
| Hooters Pacific NW |
|
20 years |
|
|
89,507 |
|
|
|
74,507 |
|
| Hooters UK |
|
5 years |
|
|
12,422 |
|
|
|
13,158 |
|
| |
|
|
|
|
336,171 |
|
|
|
360,859 |
|
| Total Intangibles at cost |
|
|
|
|
6,940,858 |
|
|
|
7,193,789 |
|
| Accumulated amortization |
|
|
|
|
(1,817,699 |
) |
|
|
(1,297,057 |
) |
| Intangible assets, net |
|
|
|
$ |
5,123,159 |
|
|
$ |
5,896,732 |
|
| |
|
Periods Ended |
|
| |
|
December 31, 2018 |
|
|
December 31, 2017 |
|
| Amortization expense |
|
$ |
520,642 |
|
|
$ |
302,879 |
|
|