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Intangible Assets | 9 Months Ended
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Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets | Intangible Assets On March 18, 2022, the Company entered into an agreement under which the Company repurchased the right to develop franchises in various counties in New Jersey. The total consideration for the transaction was $250,000. The Company carried a deferred revenue balance associated with this transaction of $95,197, representing the unrecognized fee collected upon the execution of the regional developer agreement. The Company accounted for the termination of development rights associated with unsold or undeveloped franchises as a cancellation, and the associated deferred revenue was netted against the aggregate purchase price. The Company recognized the net amount of $154,803 as reacquired development rights on March 18, 2022, which is amortized over the remaining original contract period of approximately 5.5 years. On April 1, 2022, the Company entered into an agreement under which the Company repurchased the right to develop franchises in various counties in California. The total consideration for the transaction was $2,400,000. The Company carried a deferred revenue balance associated with this transaction of $357,721, representing the unrecognized fee collected upon the execution of the regional developer agreement. The Company accounted for the termination of development rights associated with unsold or undeveloped franchises as a cancellation, and the associated deferred revenue was netted against the aggregate purchase price. The Company recognized the net amount of $2,042,279 as reacquired development rights on April 1, 2022, which is amortized over the remaining original contract period of approximately 5.3 years. During 2022, the Company recognized $3,438,133, $1,223,489, and $327,085 of reacquired franchise rights, customer relationships, and assembled workforce, respectively, from the acquisitions (reference Note 3). Intangible assets consisted of the following:
| As of September 30, 2022
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value
Intangible assets subject to amortization: |  |  |  |  |
Reacquired franchise rights | $ | 10,233,998 |  |  | $ | (4,277,349) |  |  | $ | 5,956,649 |
Customer relationships | 3,826,495 |  |  | (2,076,027) |  |  | 1,750,468 |
Reacquired development rights | 6,603,303 |  |  | (4,478,565) |  |  | 2,124,738 |
Assembled workforce | 386,397 |  |  | (55,746) |  |  | 330,651 |
| $ | 21,050,193 |  |  | $ | (10,887,687) |  |  | $ | 10,162,506 |
| As of December 31, 2021
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value
Intangible assets subject to amortization: |  |  |  |  |
Reacquired franchise rights | $ | 6,795,865 |  |  | $ | (3,153,037) |  |  | $ | 3,642,828 |
Customer relationships | 2,603,006 |  |  | (1,587,443) |  |  | 1,015,563 |
Reacquired development rights | 4,406,221 |  |  | (3,715,594) |  |  | 690,627 |
Assembled workforce | 59,311 |  |  | (4,939) |  |  | 54,372 |
| $ | 13,864,403 |  |  | $ | (8,461,013) |  |  | $ | 5,403,390 |
Amortization expense related to the Company’s intangible assets was $957,703 and $939,505 for the three months ended September 30, 2022 and 2021, respectively. Amortization expense was $2,426,674 and $2,704,974 for the nine months ended September 30, 2022 and 2021, respectively. Estimated amortization expense for 2022 and subsequent years is as follows:
| Amount
2022 (remainder) | $ | 914,765 |
2023 | 3,021,310 |
2024 | 2,159,463 |
2025 | 1,596,470 |
2026 | 1,333,885 |
Thereafter | $ | 1,136,613 |
Total | $ | 10,162,506 |

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -URI https://asc.fasb.org/subtopic&trid=2144471 + Details
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