Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill

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Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible Assets and Goodwill
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 unrecognized portion of the 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 consisted of the following:
December 31, 2019
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Value
Intangible assets subject to amortization:
Reacquired franchise rights $ 3,246,494    $ 1,400,086    $ 1,846,408   
Customer relationships 1,255,975    865,478    390,497   
Reacquired development rights 2,050,481    1,067,595    982,886   
$ 6,552,950    $ 3,333,159    $ 3,219,791   

December 31, 2018
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
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 $1,050,903 and $506,298 for the years ended December 31, 2019 and 2018, respectively.
Estimated amortization expense for 2020 and subsequent years is as follows:
2020 $ 1,409,962   
2021 1,212,703   
2022 539,750   
2023 57,376   
Total $ 3,219,791   

The changes in the carrying amount of goodwill were as follows:


Corporate Clinic Segment
Balance as of December 31, 2018
Goodwill, gross $ 3,280,139   
Accumulated impairment losses (54,994)
Goodwill, net 3,225,145   
2019 acquisitions 925,316
Balance as of December 31, 2019
Goodwill, gross 4,205,455   
Accumulated impairment losses (54,994)  
Goodwill, net $ 4,150,461   
There were no changes in the carrying amount of goodwill during the year ended December 31, 2018.