Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Intangible Assets

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Note 8 - Intangible Assets
6 Months Ended
Jun. 30, 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 June 30, 2019
    Gross Carrying   Accumulated   Net Carrying
    Amount   Amortization   Value
Intangible assets subject to amortization:                        
Reacquired franchise rights   $
1,788,000
    $
(1,058,822
)   $
729,178
 
Customer relationships    
777,000
     
(733,828
)    
43,172
 
Reacquired development rights    
2,050,482
     
(846,997
)    
1,203,485
 
    $
4,615,482
    $
(2,639,647
)   $
1,975,835
 
 
    As of December 31, 2018
    Gross Carrying   Accumulated   Net Carrying
    Amount   Amortization   Value
Intangible assets subject to amortization:                        
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 related to the Company’s intangible assets was
$191,688
and
$357,391
for the
three
and
six
months ended
June 30, 2019,
respectively. Amortization expense related to the Company’s intangible assets was
$120,710
and
$243,774
for the
three
and
six
months ended
June 30, 2018,
respectively. 
 
Estimated amortization expense for
2019
and subsequent years is as follows:
 
2019 (remainder)   $
379,140
 
2020    
741,790
 
2021    
657,850
 
2022    
184,842
 
2023    
12,213
 
Total   $
1,975,835