Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

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Intangible Assets
 3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
On January 1, 2021, the Company entered into an agreement under which the Company repurchased the right to develop franchises in various counties in Georgia. The total consideration for the transaction was $1,388,700. The Company carried a deferred revenue balance associated with this transaction of $35,679, 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 $1,353,021 as reacquired development rights in January 2021, which is amortized over the remaining original contract period of approximately 13 months.
Intangible assets consist of the following:
As of March 31, 2021
Gross Carrying
Amount		 Accumulated
Amortization		 Net Carrying
Value
Intangible assets subject to amortization:
Reacquired franchise rights
 $ 3,246,894  $ (2,270,916) $ 975,978 
Customer relationships
 1,351,975  (1,199,337) 152,638 
Reacquired development rights
 4,406,221  (2,090,299) 2,315,922 
$ 9,005,090  $ (5,560,552) $ 3,444,538 

As of December 31, 2020
Gross Carrying
Amount		 Accumulated
Amortization		 Net Carrying
Value
Intangible assets subject to amortization:
Reacquired franchise rights $ 3,246,894  $ (2,107,730) $ 1,139,164 
Customer relationships 1,351,975  (1,130,800) 221,175 
Reacquired development rights 3,053,201  (1,548,534) 1,504,667 
$ 7,652,070  $ (4,787,064) $ 2,865,006 
Amortization expense related to the Company’s intangible assets was $773,488 and $356,619 for the three months ended March 31, 2021 and 2020, respectively.
Estimated amortization expense for 2021 and subsequent years is as follows:
Amount
2021 (remainder) $ 2,189,279 
2022 1,144,739 
2023 90,521 
2024 19,999 
Total $ 3,444,538