| Intangible Assets, Net |
| 7. |
INTANGIBLE ASSETS, NET |
GOODWILL
Goodwill is summarized
by location as follows:
| |
|
December 31, 2015 |
|
|
December 31, 2014 |
|
| American Burger Company |
|
$ |
2,806,990 |
|
|
$ |
2,806,990 |
|
| BGR: The Burger Joint |
|
|
663,037 |
|
|
|
- |
|
| Little Big Burger |
|
|
2,938,279 |
|
|
|
- |
|
| BTs Burger Joint |
|
|
978,350 |
|
|
|
- |
|
| Just Fresh |
|
|
425,151 |
|
|
|
425,151 |
|
| Hooters South Africa |
|
|
206,503 |
|
|
|
273,737 |
|
| Hooters Australia |
|
|
- |
|
|
|
7,291,329 |
|
| West End Wings UK |
|
|
2,733,001 |
|
|
|
2,868,192 |
|
| Hooters Pacific NW |
|
|
1,950,828 |
|
|
|
1,951,909 |
|
| Total |
|
$ |
12,702,139 |
|
|
$ |
15,617,308 |
|
The changes in the
carrying amount of goodwill are summarized as follows:
| |
|
Years Ended |
|
| |
|
December 31, 2015 |
|
|
December 31, 2014 |
|
| Beginning Balance |
|
$ |
15,617,308 |
|
|
$ |
6,496,756 |
|
| Acquisitions |
|
|
4,579,666 |
|
|
|
11,394,009 |
|
| Divestures |
|
|
- |
|
|
|
(698,583 |
) |
| Impairment |
|
|
(6,803,537 |
) |
|
|
- |
|
| Adjustments |
|
|
(1,081 |
) |
|
|
(169,000 |
) |
| Foreign currency translation (loss) gain |
|
|
(690,217 |
) |
|
|
(1,405,874 |
) |
| Ending Balance |
|
$ |
12,702,139 |
|
|
$ |
15,617,308 |
|
An evaluation was
completed effective December 31, 2015 at which time the Company determined that no impairment (other than impairment related to
the Australia operations which was reflected as of September 30, 2015 and discussed further in Note 19. Australia Administration
Transactions And Asset Impairment) was necessary for any of the Companys goodwill balances.
OTHER INTANGIBLE
ASSETS
Franchise and trademark/tradename
intangible assets consist of the following at December 31, 2015 and December 31, 2014.
| Intangible assets |
|
Estimated
Useful
Life
|
|
December 31, 2015 |
|
|
December 31, 2014 |
|
| Trademark, Tradenames: |
|
|
|
|
|
|
|
|
|
|
| Just Fresh |
|
10 years |
|
$ |
1,010,000 |
|
|
$ |
1,010,000 |
|
| American Roadside Burger |
|
10 years |
|
|
1,786,930 |
|
|
|
1,783,954 |
|
| BGR: The Burger Joint |
|
Indefinite |
|
|
1,430,000 |
|
|
|
- |
|
| Little Big Burger |
|
Indefinite |
|
|
1,550,000 |
|
|
|
- |
|
| |
|
|
|
|
5,776,930 |
|
|
|
2,793,954 |
|
| Franchise fees: |
|
|
|
|
|
|
|
|
|
|
| South Africa |
|
20 years |
|
|
286,732 |
|
|
|
290,986 |
|
| Europe |
|
20 years |
|
|
57,566 |
|
|
|
106,506 |
|
| Australia |
|
20 years |
|
|
353,775 |
|
|
|
383,529 |
|
| Hooters Pacific NW |
|
20 years |
|
|
90,000 |
|
|
|
90,000 |
|
| BGR: The Burger Joint |
|
Indefinite |
|
|
1,320,000 |
|
|
|
- |
|
| Chanticleer Holdings * |
|
20 years |
|
|
135,000 |
|
|
|
135,000 |
|
| |
|
|
|
|
2,243,073 |
|
|
|
1,006,021 |
|
| Total Intangibles at cost |
|
|
|
|
8,020,003 |
|
|
|
3,799,975 |
|
| Accumulated amortization |
|
|
|
|
(737,928 |
) |
|
|
(403,472 |
) |
| Intangible assets, net |
|
|
|
$ |
7,282,074 |
|
|
$ |
3,396,503 |
|
* Amortization of the Chanticleer Holdings
franchise cost (related to Brazil franchise rights) will begin with the opening of a restaurant pursuant to that franchise right.
Amortization for franchise costs and
trade name/trademarks are as follows:
| |
|
Franchise fees |
|
|
Trademark / Tradenames |
|
|
Total |
|
| December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
| 2016 |
|
$ |
61,590 |
|
|
$ |
279,693 |
|
|
$ |
341,283 |
|
| 2017 |
|
|
61,590 |
|
|
|
279,693 |
|
|
|
341,283 |
|
| 2018 |
|
|
61,590 |
|
|
|
279,693 |
|
|
|
341,283 |
|
| 2019 |
|
|
61,590 |
|
|
|
279,693 |
|
|
|
341,283 |
|
| 2020 |
|
|
61,590 |
|
|
|
279,693 |
|
|
|
341,283 |
|
| Thereafter |
|
|
307,195 |
|
|
|
968,464 |
|
|
|
1,275,659 |
|
| Total |
|
$ |
615,145 |
|
|
$ |
2,366,929 |
|
|
$ |
2,982,074 |
|
|