| Intangible Assets, Net |
7. INTANGIBLE ASSETS, NET
GOODWILL
Goodwill consist
of the following at December 31, 2016 and December 31, 2015:
| |
|
December 31, 2016 |
|
|
December 31, 2015 |
|
| Hooters Full Service |
|
$ |
4,461,167 |
|
|
$ |
4,890,332 |
|
| Better Burgers Fast Casual |
|
|
7,448,848 |
|
|
|
7,386,656 |
|
| Just Fresh Fast Casual |
|
|
495,755 |
|
|
|
425,151 |
|
| |
|
$ |
12,405,770 |
|
|
$ |
12,702,139 |
|
The changes in the
carrying amount of goodwill are summarized as follows:
| |
|
December 31, 2016 |
|
|
December 31, 2015 |
|
| Beginning Balance |
|
$ |
12,702,139 |
|
|
$ |
8,325,979 |
|
| Acquisitions |
|
|
70,604 |
|
|
|
4,579,666 |
|
| Adjustments |
|
|
62,192 |
|
|
|
- |
|
| Foreign currency translation (loss) gain |
|
|
(429,165 |
) |
|
|
(203,506 |
) |
| Ending Balance |
|
$ |
12,405,770 |
|
|
$ |
12,702,139 |
|
An evaluation was
completed effective December 31, 2016 at which time the Company determined that no impairment was necessary for any of the Company’s
goodwill balances.
OTHER INTANGIBLE
ASSETS
Franchise and trademark/tradename
intangible assets consist of the following at December 31, 2016 and December 31, 2015:
| |
|
Estimated
Useful Life
|
|
December 31, 2016 |
|
|
December 31, 2015 |
|
| 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 |
|
Indefinte |
|
|
1,430,000 |
|
|
|
1,430,000 |
|
| Little Big Burger |
|
Indefinte |
|
|
1,550,000 |
|
|
|
1,550,000 |
|
| |
|
|
|
|
5,776,930 |
|
|
|
5,776,930 |
|
| Franchise fees: |
|
|
|
|
|
|
|
|
|
|
| Hooters South Africa |
|
20 years |
|
|
322,258 |
|
|
|
286,732 |
|
| Hooters Pacific NW |
|
20 years |
|
|
88,826 |
|
|
|
90,000 |
|
| BGR: The Burger Joint |
|
Indefinite |
|
|
1,320,000 |
|
|
|
1,320,000 |
|
| Hooters UK |
|
20 years |
|
|
30,848 |
|
|
|
- |
|
| |
|
|
|
|
1,761,932 |
|
|
|
1,696,732 |
|
| Total Intangibles at cost |
|
|
|
|
7,538,862 |
|
|
|
7,473,662 |
|
| Accumulated amortization |
|
|
|
|
(1,008,619 |
) |
|
|
(696,726 |
) |
| Intangible assets, net |
|
|
|
$ |
6,530,243 |
|
|
$ |
6,776,936 |
|
| |
|
|
|
Year Ended |
|
| |
|
|
|
December 31, 2016 |
|
|
December 31, 2015 |
|
| Amortization expense |
|
|
|
$ |
311,893 |
|
|
$ |
229,370 |
|
|