Xponential Fitness, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

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. The Company has not identified any events or circumstances at June 30, 2022 that would require an interim goodwill impairment test. The carrying value of goodwill at June 30, 2022 and December 31, 2021 totaled $169,073.

Intangible assets consisted of the following:


		June 30, 2022							December 31, 2021
	Amortization period (years)	Gross amount		Accumulated amortization			Net amount		Gross amount		Accumulated amortization			Net amount
Trademarks	10	$	21,220	$	(1,426	)	$	19,794	$	10,920	$	(794	)	$	10,126
Franchise agreements	7.5 – 10		69,500		(21,250	)		48,250		69,500		(17,166	)		52,334
Non-compete agreement	5		1,400		(1,385	)		15		1,400		(1,282	)		118
Web design and domain	3 – 10		430		(141	)		289		430		(86	)		344
Deferred video production costs	3		3,282		(1,567	)		1,715		2,370		(1,036	)		1,334
Total definite-lived intangible assets			95,832		(25,769	)		70,063		84,620		(20,364	)		64,256
Indefinite-lived intangible assets:
Trademarks	N/A		72,607		—			72,607		72,607		—			72,607
Total intangible assets		$	168,439	$	(25,769	)	$	142,670	$	157,227	$	(20,364	)	$	136,863

Amortization expense was $2,757 and $5,405, for the three and six months ended June 30, 2022, respectively, and $1,669 and $3,008 for the three and six months ended June 30, 2021, respectively.

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


Remainder of 2022	$	5,762
2023		11,121
2024		10,761
2025		10,279
2026		7,532
Thereafter		24,608
Total	$	70,063