Xponential Fitness, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

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. 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