Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.23.3
Intangible Assets
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
In May 2022, the Company recognized $2.4 million and $0.6 million of reacquired franchise rights and customer relationships, respectively, from the Acquisition (reference Note 3).
In May 2023, the Company recognized $0.7 million, $0.1 million and $0.2 million of reacquired franchise rights, customer relationships and acquired workforce, respectively, from the Acquisition (reference Note 3).
Intangible assets consisted of the following:
As of June 30, 2023
Gross Carrying
Amount		 Accumulated
Amortization		 Net Carrying
Value
Intangible assets subject to amortization:
Reacquired franchise rights $ 13,594,191  $ (5,802,132) $ 7,792,059 
Customer relationships 4,444,849  (2,937,539) 1,507,310 
Assembled workforce 1,137,569  (386,578) 750,991 
$ 19,176,609  $ (9,126,249) $ 10,050,360 
As of December 31, 2022
As Restated
Gross Carrying
Amount		 Accumulated
Amortization		 Net Carrying
Value
Intangible assets subject to amortization:
Reacquired franchise rights $ 12,881,894  $ (4,755,286) $ 8,126,608 
Customer relationships 4,330,365  (2,352,500) 1,977,865 
Assembled workforce 959,837  (136,015) 823,822 
$ 18,172,096  $ (7,243,801) $ 10,928,295 
Amortization expense related to the Company’s intangible assets was $945,223 and $502,113 for the three months ended June 30, 2023 and 2022, respectively. Amortization expense was $1,882,448 and $937,844 for the six months ended June 30, 2023 and 2022, respectively.
Estimated amortization expense for 2023 and subsequent years is as follows:
Amount
2023 (remainder) $ 1,911,358 
2024 2,824,441 
2025 1,699,025 
2026 1,324,974 
2027 769,942 
Thereafter $ 1,520,620 
Total $ 10,050,360