Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets, net

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Goodwill and Intangible Assets, net
 12 Months Ended
Jan. 01, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, net Goodwill and Intangible Assets, net
The following is a summary of the components of intangible assets and the related amortization expense and impairment charges:

January 1, 2024
(in thousands)
Weighted Average Remaining Useful Life (years)
 Amount Accumulated Amortization
Accumulated Impairment Charges
Net Carrying Value
Franchise agreements 4.0 $ 24,839  $ (10,793) $ —  14,046 
BurgerFi trade names / trademarks 27.0 83,033  (8,419) —  74,614 
Anthony's trade names / trademarks 27.8 60,690  (4,383) —  56,307 
Other intangibles 7.0 9,018  (1,241) (7,706) 71 
  Subtotal 177,580  (24,836) (7,706) 145,038 
Liquor licenses $5,930 —  (113) 5,818 
Total intangible assets, net $ 183,510  $ (24,836) $ (7,818) $ 150,856 
January 2, 2023
(in thousands)
Weighted Average Remaining Useful Life (years)
 Amount Accumulated Amortization
Accumulated Impairment Charges
 Net Carrying Value
Franchise agreements 5.0 $ 24,839  $ (7,244) $ —  $ 17,595 
BurgerFi trade names / trademarks 28.0 83,033  (5,650) —  77,383 
Anthony's trade names / trademarks 28.8 60,690  (2,359) —  58,331 
Other intangibles 8.0 9,018  (1,091) (7,706) 221 
  Subtotal 177,580  (16,344) (7,706) 153,530 
Liquor licenses 6,678  —  6,678 
Total intangible assets, net $ 184,258  $ (16,344) $ (7,706) $ 160,208 

The following presents information about the Company’s goodwill on the dates indicated:
(in thousands) Anthony’s Segment
BurgerFi Segment
Total
Balance as of December 31, 2021
Goodwill
 $ 80,684  $ 123,981  $ 204,665 
Accumulated impairment losses
 (49,064) (123,981) (173,045)
Goodwill, net as of January 2, 2023
 $ 31,621  $ —  $ 31,621 
Goodwill
 $ 80,684  $ 123,981  $ 204,665 
Accumulated impairment losses
 (49,064) $ (123,981) (173,045)
Goodwill, net as of January 1, 2024
 $ 31,621  $ —  $ 31,621 

The Anthony’s liquor licenses are considered to have an indefinite life, and in addition to the Company's definite-lived intangible assets, are reviewed for impairment at the end of each reporting period and whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. During the year ended January 1, 2024, the Company recognized $0.1 million in gain on sale of assets in other income, net, in its consolidated statements of operations from the sale of a liquor license intangible asset for one of its closed Anthony’s locations with a book value of $0.8 million . For the year ended January 1, 2024, we recorded $0.1 million of impairment charges related to these license agreements; there were no impairment charges recorded for the year ended January 2, 2023. See Note 5, “Impairment,” for further information.

Amortization expense for each of the years ended January 1, 2024 and January 2, 2023 was $8.5 million. The estimated aggregate amortization expense for intangible assets over the next five fiscal years and thereafter is as follows:
(in thousands)
2024 $ 8,353 
2025 8,353 
2026 8,353 
2027 8,205 
2028 4,804 
Thereafter 106,970 
Total $ 145,038