Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Intangible Assets

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Note 8 - Intangible Assets
9 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]
Note
8:
Intangible Assets
 
On
July 26, 2018,
the Company entered into an agreement under which it repurchased the regional development rights to develop franchises in Las Vegas, Nevada. The total consideration for the transaction was
$278,250,
paid in cash.
 
The Company carried a deferred revenue balance associated with these transactions of
$26,934,
representing license fees collected upon the execution of the regional developer agreements.  The Company accounted for the termination of development rights associated with unsold or undeveloped franchises as a cancellation, and the associated deferred revenue was netted against the aggregate purchase price.  
 
Intangible assets consist of the following:
 
    As of September 30, 2018
    Gross Carrying   Accumulated   Net Carrying
    Amount   Amortization   Value
Amortized intangible assets:                        
Reacquired franchise rights   $
1,758,000
    $
854,011
    $
903,989
 
Customer relationships    
745,000
     
711,999
     
33,001
 
Reacquired development rights    
1,413,316
     
584,984
     
828,332
 
    $
3,916,316
    $
2,150,994
    $
1,765,322
 
 
    As of December 31, 2017
    Gross Carrying   Accumulated   Net Carrying
    Amount   Amortization   Value
Amortized intangible assets:                        
Reacquired franchise rights   $
1,673,000
    $
657,943
    $
1,015,057
 
Customer relationships    
701,000
     
674,667
     
26,333
 
Reacquired development rights    
1,162,000
     
443,348
     
718,652
 
    $
3,536,000
    $
1,775,958
    $
1,760,042
 
 
Amortization expense was
$131,262
and
$375,036
for the
three
and
nine
months ended
September 30, 2018,
respectively. Amortization expense was
$128,562
and
$450,315
for the
three
and
nine
months ended
September 30, 2017,
respectively.
 
Estimated amortization expense for
2018
and subsequent years is as follows:
 
2018 (remainder)   $
131,262
 
2019    
525,048
 
2020    
508,551
 
2021    
437,830
 
2022    
150,418
 
Thereafter    
12,213
 
Total   $
1,765,322