Annual report pursuant to Section 13 and 15(d)

Organization and Summary of Significant Accounting Policies (Tables)

v3.23.1
Organization and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jan. 02, 2023
Accounting Policies [Abstract]  
Summary of Store Activity Store activity for the years ended January 2, 2023 and December 31, 2021 is as follows:
2022 2021
Corporate-owned Franchised Total Corporate-owned Franchised Total
Total BurgerFi and Anthony's 85  89  174  86 93 179
BurgerFi stores, beginning of year 25  93  118  17  102  119 
BurgerFi stores opened 3  8  11  10  6  16 
BurgerFi stores transferred/sold (3) 3  —  (1) 1  — 
BurgerFi stores closed —  (15) (15) (1) (16) (17)
BurgerFi total stores, end of year 25  89  114  25  93  118 
Anthony's stores, beginning of period 61  —  61  —  —  — 
Anthony's stores, acquired —  —  —  61  —  61 
Anthony's stores opened —  —  —  —  —  — 
Anthony's stores closed (1) —  (1) —  —  — 
Anthony's total stores, end of year 60  —  60  61  —  61 
Schedule of Goodwill
The following table represents changes to the Company's goodwill during the year ended January 2, 2023 and December 31, 2021:

Reporting Unit
(in thousands) BurgerFi Anthony's Total Goodwill
Balance, December 31, 2020 $ 119,542  $ —  $ 119,542 
Goodwill acquired in connection with Anthony’s acquisition —  80,495  80,495 
Adjustment to goodwill acquired 4,439  —  4,439 
Impairment Loss (106,476) —  (106,476)
Balance, December 31, 2021 $ 17,505  $ 80,495  $ 98,000 
Adjustment to goodwill acquired —  190  190 
Impairment Loss (17,505) (49,064) (66,569)
Balance January 2, 2023 $ —  $ 31,621  $ 31,621 
Summary of Calculation of Basic and Diluted Income (Loss) Per Common Share
Basic and diluted net loss per common share is calculated as follows:
(in thousands, except for per share data) Year Ended January 2, 2023 Year Ended December 31, 2021
Numerator:
Net loss available to common shareholders $ (103,432) $ (121,494)
Reversal of gain on change in value of warrant liability $ —  $ (12,619)
Net loss available to common shareholders - diluted $ (103,432) $ (134,113)
Denominator:
Weighted-average shares outstanding 22,173,694  18,408,247 
Effect of dilutive securities
Warrants —  211,854 
UPOs —  4,346 
Diluted weighted-average shares outstanding 22,173,694  18,624,447 
Basic net loss per common share $ (4.66) $ (6.60)
Diluted net loss per common share $ (4.66) $ (7.20)
Schedules of Contract Balances, Franchise Revenue and Deferred Revenue
Opening and closing balances of contract liabilities and receivables from contracts with customers for the years ended January 2, 2023 and December 31, 2021 are as follows:
(in thousands) Year Ended January 2, 2023   Year Ended December 31, 2021
Franchising receivables $ 168  $ 212 
Gift card liability $ 1,847  $ 2,587 
Unearned revenue, current $ 84  $ 468 
Unearned revenue, long-term $ 1,008  $ 2,109 
Revenue recognized during the years ended are as follows:

(in thousands) Year Ended
January 2, 2023		 Year Ended December 31, 2021
Franchise Fees $ 1,806  $ 1,069 

An analysis of unearned revenue is as follows:

(in thousands) January 2, 2023   December 31,
2021
Balance, beginning of period $ 2,577  $ 3,306 
Initial/Transfer franchise fees received 364  290 
Revenue recognized for stores open and transfers during period (325) (235)
Revenue recognized related to franchise agreement terminations (1,481) (834)
Other unearned revenue (recognized) received (43) 50 
Balance, end of period $ 1,092  $ 2,577