Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

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Intangible Assets
 3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
On March 18, 2022, the Company entered into an agreement under which the Company repurchased the right to develop franchises in various counties in New Jersey. The total consideration for the transaction was $250,000. The Company carried a deferred revenue balance associated with this transaction of $95,197, representing the unrecognized fee collected upon the execution of the regional developer agreement. 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. The Company recognized the net amount of $154,803 as reacquired development rights on March 18, 2022, which is amortized over the remaining original contract period of approximately 5.5 years.
Intangible assets consist of the following:
As of March 31, 2022
Gross Carrying
Amount		 Accumulated
Amortization		 Net Carrying
Value
Intangible assets subject to amortization:
Reacquired franchise rights $ 6,795,865  $ (3,468,788) $ 3,327,077 
Customer relationships 2,603,006  (1,700,012) 902,994 
Reacquired development rights 4,561,024  (4,008,114) 552,910 
Assembled workforce 59,311  (12,351) 46,960 
$ 14,019,206  $ (9,189,265) $ 4,829,941 
As of December 31, 2021
Gross Carrying
Amount		 Accumulated
Amortization		 Net Carrying
Value
Intangible assets subject to amortization:
Reacquired franchise rights $ 6,795,865  $ (3,153,037) $ 3,642,828 
Customer relationships 2,603,006  (1,587,443) 1,015,563 
Reacquired development rights 4,406,221  (3,715,594) 690,627 
Assembled workforce 59,311  (4,939) 54,372 
$ 13,864,403  $ (8,461,013) $ 5,403,390 
Amortization expense related to the Company’s intangible assets was $728,252 and $773,488 for the three months ended March 31, 2022 and 2021, respectively.
Estimated amortization expense for 2022 and subsequent years is as follows:
Amount
2022 (remainder) $ 1,563,440 
2023 1,233,884 
2024 666,142 
2025 386,006 
2026 286,602 
Thereafter $ 693,867 
Total $ 4,829,941