Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.21.2
Intangible Assets
6 Months Ended
Jun. 30, 2021
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.:

 

 

 

June 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

 

 

$

1,922

 

 

$

22,917

 

 

$

24,839

 

 

$

147

 

 

$

24,692

 

Trade names / trademarks

 

 

83,060

 

 

 

1,499

 

 

 

81,561

 

 

 

83,033

 

 

 

115

 

 

 

82,918

 

Liquor license

 

 

235

 

 

 

 

 

 

235

 

 

 

235

 

 

 

 

 

 

235

 

Reef Kitchens license agreement

 

 

8,882

 

 

 

481

 

 

 

8,401

 

 

 

8,882

 

 

 

37

 

 

 

8,845

 

VegeFi product

 

 

135

 

 

 

7

 

 

 

128

 

 

 

135

 

 

 

1

 

 

 

134

 

 

 

$

117,151

 

 

$

3,909

 

 

$

113,242

 

 

$

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 six months ended June 30, 2021 and 2020.

Amortization expense for the Successor period for the three and six months ended June 30, 2021 was $1,821,000 and $3,624,000, respectively. Included within amortization expense is $7,500 and $15,000 for the three and six months ended June 30, 2021 related to the amortization of lease acquisition costs. The intangible assets for the Predecessor period from January 1, 2020 to June 30, 2020 were determined to be indefinite life intangibles. As such, no amortization expense was recognized for the three and six months ended June 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

 

$

3,609

 

2022

 

 

7,219

 

2023

 

 

7,219

 

2024

 

 

7,219

 

2025

 

 

7,219

 

2026 and thereafter

 

 

80,522

 

Total

 

$

113,007