Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Intangible Assets

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Note 8 - Intangible Assets
3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]
Note
8:
Intangible Assets
 
On
February 4, 2019,
the Company entered into an agreement under which it repurchased the right to develop franchises in various counties in South Carolina and Georgia. The total consideration for the transaction was
$681,500.
The Company carried a deferred revenue balance associated with these transactions of
$44,334,
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 March 31, 2019
    Gross Carrying
Amount
  Accumulated
Amortization
  Net Carrying
Value
Amortized intangible assets:                        
Reacquired franchise rights   $
1,788,000
    $
988,265
    $
799,735
 
Customer relationships    
777,000
     
722,997
     
54,003
 
Reacquired development rights    
2,050,482
     
736,698
     
1,313,784
 
    $
4,615,482
    $
2,447,960
    $
2,167,522
 
 
 
    As of December 31, 2018
    Gross Carrying
Amount
  Accumulated
Amortization
  Net Carrying
Value
Amortized intangible assets:                        
Reacquired franchise rights   $
1,758,000
    $
921,138
    $
836,862
 
Customer relationships    
745,000
     
717,498
     
27,502
 
Reacquired development rights    
1,413,316
     
643,620
     
769,696
 
    $
3,916,316
    $
2,282,256
    $
1,634,060
 
Amortization expense was
$171,873
and
$123,064
for the
three
months ended
March 31, 2019
and
2018,
respectively.
 
Estimated amortization expense for
2019
and subsequent years is as follows:
 
  2019 (remainder)   $
570,435
   
  2020    
741,202
   
  2021    
657,152
   
  2022    
186,520
   
  2023    
12,213
   
  Thereafter    
-
   
  Total   $
2,167,522