Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jan. 01, 2024
Accounting Policies [Abstract]  
Summary of Store Activity Store activity for the years ended and January 1, 2024 and January 2, 2023 is as follows:
2023 2022
Corporate-owned Franchised Total Corporate-owned Franchised Total
Total BurgerFi and Anthony's 87  81  168  85  89  174 
BurgerFi stores, beginning of the period 25  89  114  25  93  118 
BurgerFi stores opened —  8  8  3  8  11 
BurgerFi stores transferred/sold 4  (4) —  (3) 3  — 
BurgerFi stores closed (1) (13) (14) —  (15) (15)
BurgerFi total stores, end of the period 28  80  108  25  89  114 
Anthony's stores, beginning of period / acquired 60  —  60  61  —  61 
Anthony's stores opened —  1  1  —  —  — 
Anthony's stores closed (1) —  (1) (1) —  (1)
Anthony's total stores, end of the period 59  1  60  60  —  60 
Summary of Useful Lives of Property and Equipment, Net Depreciation is provided by the straight-line method over an estimated useful life as shown below:
Years
Leaseholder Improvements Shorter of lease term or life of asset
Kitchen equipment and other equipment
5 - 7
Computers and office equipment
3 - 5
Furniture and fixtures
5 - 7
Vehicles
5 - 7
Property and equipment consisted of the following:

(in thousands) January 1, 2024 January 2, 2023
Leasehold improvements $ 17,579  $ 17,029 
Kitchen equipment and other equipment 8,708  8,196 
Computers and office equipment 1,536  1,468 
Furniture and fixtures 2,828  2,677 
Vehicles 8  37 
30,659  29,407 
Less: Accumulated depreciation and amortization (14,538) (10,036)
Property & equipment – net $ 16,121  $ 19,371 
Summary of Finite-Lived Intangible Assets Useful Life
Definite-lived intangible assets are amortized on a straight-line basis using the following estimated useful lives of the related classes of intangibles as shown below:

Years
Franchise agreements
7
Trade names
30
License agreements
2
VegiFi product
10
Right of use assets
5 - 10
Schedule of Goodwill
The following table represents changes to the Company's goodwill balances during the years ended January 1, 2024 and January 2, 2023:
Reporting Unit
(in thousands) BurgerFi Anthony's Total Goodwill
Balance at December 31, 2021 $ 17,505  $ 80,495  $ 98,000 
Adjustment to goodwill acquired —  190  190 
Impairment loss
 (17,505) (49,064) (66,569)
Balance at January 2, 2023 and January 1, 2024
 $ —  $ 31,621  $ 31,621 
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 
Summary of Restructuring and Related Costs
Restructuring costs for the periods shown consist of the following:

(in thousands) Year Ended January 1, 2024 Year Ended
January 2, 2023
Expenses related to financing $ 1,168  $ 660 
Severance and onboarding costs associated with change in CEO and CFO 1,489  799 
Total $ 2,657  $ 1,459 
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 1, 2024 Year Ended
January 2, 2023
Numerator:
Net loss available to common stockholders
 $ (30,708) $ (103,432)
Denominator:
Weighted-average shares outstanding, basic and diluted
 25,521,098  22,173,694 
Basic and diluted net loss per common share
 $ (1.20) $ (4.66)
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 1, 2024 and January 2, 2023 are as follows:
(in thousands) Year Ended January 1, 2024   Year Ended
January 2, 2023
Franchising receivables $ 137  $ 168 
Gift card liability $ 2,205  $ 1,847 
Unearned revenue, current $ 19  $ 84 
Unearned revenue, long-term $ 726  $ 1,008 
Revenue recognized during the years ended are as follows:

(in thousands) Year ended January 1, 2024   Year Ended January 2, 2023
Franchise Fees $ 613  $ 1,806 
An analysis of unearned revenue is as follows:

(in thousands) Year ended January 1, 2024   Year Ended January 2, 2023
Balance, beginning of period $ 1,092  $ 2,577 
Initial/Transfer franchise fees received 265  364 
Revenue recognized for stores open and transfers during period (137) (325)
Revenue recognized related to franchise agreement terminations (418) (1,481)
Other unearned revenue (recognized) received (57) (43)
Balance, end of period
 $ 745  $ 1,092