Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v3.22.0.1
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note 7 – Goodwill and Intangible Assets

Goodwill represents the excess of cost over the fair value of identifiable net assets acquired related to the original purchase of the various franchise businesses and acquisition of company-owned transition studios. Goodwill is not amortized but is tested annually for impairment or more frequently if indicators of potential impairment exist. During the year ended December 31, 2021, there was an increase of $29,393 in previously reported goodwill due to the acquisitions of Rumble and BFT as discussed in Note 3. Goodwill totaled $169,073 and $139,680 as of December 31, 2021 and 2020, respectively.

Intangible assets consisted of the following:

 

 

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Amortization
period
(years)

 

Gross
amount

 

 

Accumulated
amortization

 

 

Net
amount

 

 

Gross
amount

 

 

Accumulated
amortization

 

 

Net
amount

 

Trademarks

 

10

 

$

10,920

 

 

$

(794

)

 

$

10,126

 

 

$

1,420

 

 

$

(373

)

 

$

1,047

 

Franchise agreements

 

7.5 – 10

 

 

69,500

 

 

 

(17,166

)

 

 

52,334

 

 

 

34,500

 

 

 

(11,498

)

 

 

23,002

 

Reacquired franchise rights

 

5 – 8

 

 

 

 

 

 

 

 

 

 

 

158

 

 

 

(15

)

 

 

143

 

Customer relationships

 

1

 

 

 

 

 

 

 

 

 

 

 

33

 

 

 

(26

)

 

 

7

 

Non-compete agreement

 

5

 

 

1,400

 

 

 

(1,282

)

 

 

118

 

 

 

1,400

 

 

 

(1,002

)

 

 

398

 

Web design and domain

 

3 – 10

 

 

430

 

 

 

(86

)

 

 

344

 

 

 

130

 

 

 

(44

)

 

 

86

 

Deferred video production costs

 

3

 

 

2,370

 

 

 

(1,036

)

 

 

1,334

 

 

 

1,150

 

 

 

(316

)

 

 

834

 

Total definite-lived intangible assets

 

 

 

 

84,620

 

 

 

(20,364

)

 

 

64,256

 

 

 

38,791

 

 

 

(13,274

)

 

 

25,517

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks

 

N/A

 

 

72,607

 

 

 

 

 

 

72,607

 

 

 

72,607

 

 

 

 

 

 

72,607

 

Total intangible assets

 

 

 

$

157,227

 

 

$

(20,364

)

 

$

136,863

 

 

$

111,398

 

 

$

(13,274

)

 

$

98,124

 

 

Amortization expense for the years ended December 31, 2021, 2020 and 2019 was $7,170, $5,064 and $5,132, respectively.

The anticipated future amortization expense of intangible assets is as follows:

 

Year ending December 31,

 

 

 

2022

 

$

10,217

 

2023

 

 

9,809

 

2024

 

 

9,513

 

2025

 

 

9,186

 

2026

 

 

6,502

 

Thereafter

 

 

19,029

 

Total

 

$

64,256