BurgerFi International, Inc. Post-effective amendment to a registration statement that is not immediately effective upon filing

Post-effective amendment to a registration statement that is not immediately effective upon filing

Intangible Assets

Intangible Assets

9 Months Ended

12 Months Ended

Sep. 30, 2021

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

4. Intangible Assets

The following is a summary of the components of intangible assets and the related accumulated amortization.:


	September 30, 2021						December 31, 2020
Intangible Assets (in thousands)	Amount		Accumulated Amortization		Net Carrying Value		Amount		Accumulated Amortization		Net Carrying Value
Franchise agreements	$	24,839	$	2,809	$	22,030	$	24,839	$	147	$	24,692
Trade names / trademarks		83,060		2,191		80,869		83,033		115		82,918
Liquor license		235		—		235		235		—		235
Reef Kitchens license agreement		8,882		703		8,179		8,882		37		8,845
VegeFi product		135		11		124		135		1		134

	$	117,151	$	5,714	$	111,437	$	117,124	$	300	$	116,824

Liquor license is considered to have an indefinite life and is reviewed for impairment annually and whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. No

impairments were recognized for the nine months ended September 30, 2021 and 2020.

Amortization expense for the Successor period for the three and nine months ended September 30, 2021 was

$1,807,000 and $5,431,000

, respectively. Included within amortization expense is

$3,000 and $18,000

for the three and nine months ended September 30, 2021 related to the amortization of lease acquisition costs. The intangible assets for the Predecessor period from January 1, 2020 to September 30, 2020 were determined to be indefinite life intangibles. As

such, no

amortization expense was recognized for the three and nine months ended September

30, 2020. The estimated aggregate amortization expense for intangible assets over the next five years ending December 31 and thereafter is as follows:


(in thousands)
Remainder of 2021	$	1,804
2022		7,219
2023		7,219
2024		7,219
2025		7,219
2026 and thereafter		80,522

Total	$	111,202

4. Intangible Assets

The following is a summary of the components of intangible assets and the related amortization expense:


	Successor December 31, 2020						Predecessor December 31, 2019
Intangible Assets at December 31, 2020 (in thousands)	Amount		Accumulated Amortization		Net Carrying Value		Amount		Accumulated Amortization		Net Carrying Value
Franchise agreements	$	24,839	$	147	$	24,692	$	—	$	—	$	—
Trade names / trademarks		83,033		115		82,918		25		—		25
Liquor license		235		—		235		210		—		210
Reef Kitchens license agreement		8,882		37		8,845		—		—		—
VegeFi product		135		1		134		—		—		—

	$	117,124	$	300	$	116,824	$	235	$	—	$	235

Liquor license is

considered to have an indefinite life and is reviewed for impairment annually and whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. No impairments were recognized for the years ended December 31, 2020 and 2019

Amortization expense for the Successor period from December 16, 2020 to December 31, 2020 was $300,000. The intangible assets for the Predecessor period were determined to be indefinite life intangibles. As such, no amortization expense was recognized for the period from January 1, 2020 to December 15, 2020 and for the twelve-month period ended December 31, 2019. The estimated aggregate amortization expense for intangible assets over the next five years ending December 31 and thereafter is as follows:


(in thousands):	Successor
2021	$	7,218
2022		7,218
2023		7,218
2024		7,218
2025		7,218
Thereafter		80,499

Total		116,589