Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets, Net

v3.10.0.1
Goodwill and Other Intangible Assets, Net
6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net

6. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

 

Goodwill consists of the following:

 

    June 30, 2018     December 31, 2017  
Hooters Full Service   $ 2,182,006     $ 4,703,203  
Better Burgers Fast Casual     7,448,848       7,448,848  
Just Fresh Fast Casual     495,755       495,755  
    $ 10,126,609     $ 12,647,806  

 

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

 

    June 30, 2018     December 31, 2017  
Beginning Balance   $ 12,647,806     $ 12,405,770  
Acquisitions     -       -  
Adjustments     (2,495,375 )     -  
Foreign currency translation (loss) gain     (25,822 )     242,036  
Ending Balance   $ 10,126,609     $ 12,647,806  

 

Other intangible assets, consisting of franchise costs, trademarks and tradenames, is summarized by location as follows:

 

   

Estimated

Useful Life

  June 30, 2018     December 31, 2017  
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  
Acquired Franchise Rights                    
BGR: The Burger Joint   7 years     1,056,000       1,056,000  
                     
Franchise License Fees:                    
Hooters South Africa   20 years     246,344       273,194  
Hooters Pacific NW   20 years     74,507       74,507  
Hooters UK   5 years     -       13,158  
          320,851       360,859  
Total Intangibles at cost         7,153,781       7,193,789  
Accumulated amortization         (1,553,538 )     (1,297,057 )
Intangible assets, net       $ 5,600,243     $ 5,896,732  

 

Amortization expense for the six months ended June 30, 2018 and 2017 was $0.3 million and $0.2 million, respectively.