Annual report pursuant to Section 13 and 15(d)

Intangible Assets, Net

v2.4.1.9
Intangible Assets, Net
 12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net

7. INTANGIBLE ASSETS, NET

 

GOODWILL

 

Goodwill is summarized by location as follows:

 

    December 31,  
Goodwill   2014     2013  
South Africa   $ 273,737     $ 396,487  
ARB     2,806,990       2,550,611  
WEW     2,868,192       3,124,507  
Just Fresh     425,151       425,151  
Australia     7,291,329       -  
Hootres Pacific NW     1,951,909       -  
                 
Total   $ 15,617,308     $ 6,496,756  

 

The changes in the carrying amount of goodwill are summarized as follows:

 

    2014     2013  
Beginning Balance   $ 6,496,756     $ 396,487  
Acquisitions     11,394,009       6,135,262  
Divestures     (698,583 )     -  
Goodwill adjustments     (169,000 )     -  
Foreign currency translation     (1,405,874 )     (34,993 )
Ending Balance   $ 15,617,308     $ 6,496,756  

 

An evaluation was completed effective December 31, 2014 at which time the Company determined that no impairment was necessary for any of the Company’s goodwill balances.

 

OTHER INTANGIBLE ASSETS

 

Franchise cost for the Company’s Hooters restaurants and trademark/trade name for the Company’s Just Fresh and American Roadside Burger entities consists of the following at December 31, 2014 and December 31, 2013. The Company is amortizing these franchise costs from the opening of each restaurant for the 20 year term of the franchise agreement with HOA and the trademark/trade name over its estimated 10 year useful lives.

 

    December 31,  
Intagible assets   2014     2013  
Franchise fees:                
South Africa   $ 290,986     $ 448,888  
Europe     106,506       106,506  
Australia     383,529       -  
Hootres Pacific NW     59,186       -  
Brazil *     135,000       135,000  
      975,207       690,394  
                 
Trademark, Tradenames:                
Just Fresh     1,010,000       1,010,000  
American Roadside Burger     1,783,954       1,784,327  
      2,793,954       2,794,327  
Total Intagnibles at cost     3,769,161       3,484,721  
Accumulated amortization     (372,658 )     (60,089 )
Intangible assets, net   $ 3,396,503     $ 3,424,632  
                 
Amortization expense   $ 308,412     $ 21,349  

 

* Amortization of the Brazil franchise cost will begin with the opening of a restaurant in that market.

 

Amortization for franchise costs and trade name/trademarks are as follows:

 

    Franchise fees     Trademark / Tradenames     Total  
December 31,                        
2015   $ 61,590     $ 279,432     $ 341,022  
2016     61,590       279,432       341,022  
2017     61,590       279,432       341,022  
2018     61,590       279,432       341,022  
2019     61,590       279,432       341,022  
Thereafter     438,462       1,117,931       1,556,393  
Total     746,412       2,515,091       3,261,503