Annual report pursuant to Section 13 and 15(d)

Intangible Assets, Net

v3.7.0.1
Intangible Assets, Net
12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
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