| Goodwill and Other Intangible Assets, Net |
| 6. |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET |
Goodwill is summarized
by location as follows:
| |
|
March 31, 2016 |
|
|
December 31, 2015 |
|
| American Burger Company |
|
$ |
2,806,990 |
|
|
$ |
2,806,990 |
|
| BGR: The Burger Joint |
|
|
663,037 |
|
|
|
663,037 |
|
| Little Big Burger |
|
|
2,938,279 |
|
|
|
2,938,279 |
|
| BTs Burger Joint |
|
|
978,350 |
|
|
|
978,350 |
|
| Just Fresh |
|
|
495,755 |
|
|
|
425,151 |
|
| Hooters South Africa |
|
|
214,544 |
|
|
|
206,503 |
|
| West End Wings UK |
|
|
2,653,239 |
|
|
|
2,733,001 |
|
| Hooters Pacific NW |
|
|
1,950,828 |
|
|
|
1,950,828 |
|
| Total |
|
$ |
12,701,022 |
|
|
$ |
12,702,139 |
|
The changes in the
carrying amount of goodwill are summarized as follows:
| |
|
Three Months Ended |
|
| |
|
March 31, 2016 |
|
|
March 31, 2015 |
|
| Beginning Balance |
|
$ |
12,702,139 |
|
|
$ |
15,617,308 |
|
| Acquisitions |
|
|
70,604 |
|
|
|
426,038 |
|
| Foreign currency loss |
|
|
(71,721 |
) |
|
|
(567,607 |
) |
| Ending Balance |
|
$ |
12,701,022 |
|
|
$ |
15,475,739 |
|
Other intangible
assets, consisting of franchise costs, trademarks and tradenames, is summarized by location as follows:
| |
|
Estimated
Useful Life
|
|
March 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 |
|
Indefinite |
|
|
1,430,000 |
|
|
|
1,430,000 |
|
| Little Big Burger |
|
Indefinite |
|
|
1,550,000 |
|
|
|
1,550,000 |
|
| |
|
|
|
|
5,776,930 |
|
|
|
5,776,930 |
|
| Franchise fees: |
|
|
|
|
|
|
|
|
|
|
| South Africa |
|
20 years |
|
|
297,897 |
|
|
|
286,732 |
|
| Europe |
|
20 years |
|
|
57,956 |
|
|
|
57,566 |
|
| Australia |
|
20 years |
|
|
353,748 |
|
|
|
353,775 |
|
| Hooters Pacific NW |
|
20 years |
|
|
90,000 |
|
|
|
90,000 |
|
| BGR: The Burger Joint |
|
Indefinite |
|
|
1,320,000 |
|
|
|
1,320,000 |
|
| Chanticleer Holdings * |
|
20 years |
|
|
135,000 |
|
|
|
135,000 |
|
| |
|
|
|
|
2,254,601 |
|
|
|
2,243,072 |
|
| Total Intangibles at cost |
|
|
|
|
8,031,531 |
|
|
|
8,020,002 |
|
| Accumulated amortization |
|
|
|
|
(827,017 |
) |
|
|
(737,928 |
) |
| Intangible assets, net |
|
|
|
$ |
7,204,514 |
|
|
$ |
7,282,074 |
|
| |
|
Periods Ended |
|
| |
|
March 31, 2016 |
|
|
March 31, 2015 |
|
| Amortization expense |
|
$ |
82,325 |
|
|
$ |
68,611 |
|
| |
|
|
|
|
|
|
|
|
* 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.
|