INTANGIBLE ASSETS

12 Months Ended

Jan. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Finite and indefinite lived intangible assets from continuing operations consist of the following at:


	January 1, 2023
	Gross Value		Accumulated Amortization		Net Carrying Value
Finite lives:
Client partner lists	$	58,609,423	$	38,227,373	$	20,382,050
Covenant not to compete	2,391,385		1,886,225		505,160
Computer software	7,207,568		3,086,933		4,120,635
	68,208,376		43,200,531		25,007,845
Indefinite lives:
Trade names	23,977,000		1,432,434		22,544,566
Total	$	92,185,376	$	44,632,965	$	47,552,411


	December 26, 2021
	Gross Value		Accumulated Amortization		Net Carrying Value
Finite lives:
Client partner lists	$	44,732,838	$	36,112,796	$	8,620,042
Covenant not to compete	2,341,385		1,663,444		677,941
Computer software	3,594,313		1,851,952		1,742,361
	50,668,536		39,628,192		11,040,344
Indefinite lives:
Trade names	23,977,000		1,432,434		22,544,566
Total	$	74,645,536	$	41,060,626	$	33,584,910

Estimated future amortization expense from continuing operations for the next five years and thereafter is as follows:


Fiscal Years Ending:
2023	$	6,563,709
2024	5,442,478
2025	4,017,497
2026	2,882,030
2027	2,329,279
Thereafter	3,772,852
Total	$	25,007,845

Total amortization expense from continuing operations for Fiscal 2022, 2021 and 2020 was $3.5 million, $3.0 million and $4.1 million, respectively. In Fiscal 2022, the Company added software assets of $1.7 million and reclassified $1.9 million from property and equipment related to the information technology improvement project.

At the February 2023 Board of Directors meeting, management’s plan was approved to rebrand as BGSF, eliminating various current trade names. $22.5 million in trade name assets, which will be written off in 2023. Since the trade name asset has an indefinite life, the carrying value is not amortized. Thus, the impairment will have no cash impact.