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GOODWILL AND OTHER INTANGIBLE ASSETS, NET
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS, NET

NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS, NET

 

Intangible Assets

 

A summary of the intangible assets is presented below:

 

Intangible Assets  Intangible assets, net at December 31, 2021   Acquisitions  

Impairment of

intangible

assets

   Amortization expense   Intangible assets, net at September 30, 2022 
Trademark Muscle Maker Grill  $1,525,653   $      -   $      -   $(380,368)  $1,145,285 
Franchise Agreements   162,439    -    -    (20,030)   142,409 
Trademark SuperFit   38,075    -    -    (6,728)   31,347 
Domain Name SuperFit   105,764    -    -    (18,688)   87,076 
Customer List SuperFit   118,455    -    -    (20,931)   97,524 
Proprietary Recipes SuperFit   135,378    -    -    (23,921)   111,457 
Non-Compete Agreement SuperFit   193,339    -    -    (64,763)   128,576 
Trademark Pokemoto   152,862    -    -    (26,164)   126,698 
Franchisee License Pokemoto   2,599,473    -    -    (207,441)   2,392,032 
Proprietary Recipes Pokemoto   1,027,916    -    -    (120,645)   907,271 
Non-Compete Agreement Pokemoto   328,110    -    -    (179,507)   148,603 
                          
   $6,387,464   $-   $-   $(1,069,186)  $5,318,278 

 

 

MUSCLE MAKER, INC. AND SUBSIDIARIES

 

Notes to Unaudited Condensed Consolidated Financial Statements

 

NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS, NET

 

Intangible Assets, continued

 

Amortization expense related to intangible assets was $360,312 and $1,069,186 for the three and nine months ended September 30, 2022, respectively. Amortization expense related to intangible assets was $238,017 and $403,026 for the three and nine months ended September 30, 2021, respectively.

 

The estimated future amortization expense is as follows:

 

For the nine months ended September 30,  2023   2024   2025   2026   2027   Thereafter   Total 
Trademark Muscle Maker Grill  $508,551   $509,944   $126,790   $-   $-   $-   $1,145,285 
Franchise Agreements   26,780    26,853    26,780    26,780    26,780    8,436    142,409 
Trademark SuperFit   8,995    9,020    8,995    4,337    -    -    31,347 
Domain Name SuperFit   24,986    25,055    24,986    12,049    -    -    87,076 
Customer List SuperFit   27,985    28,061    27,985    13,493    -    -    97,524 
Proprietary Recipes SuperFit   31,983    32,070    31,983    15,421    -    -    111,457 
Non-Compete Agreement SuperFit   86,588    41,988    -    -    -    -    128,576 
Trademark Pokemoto   34,981    35,077    34,981    21,659    -    -    126,698 
Franchisee License Pokemoto   277,348    278,108    277,348    277,348    277,348    1,004,532    2,392,032 
Proprietary Recipes Pokemoto   161,303    161,743    161,303    161,303    161,303    100,316    907,271 
Non-Compete Agreement Pokemoto   148,603    -    -    -    -    -    148,603 
                                    
Total  $1,338,103   $1,147,919   $721,151   $532,390   $465,431   $1,113,284    5,318,278 

 

The Company determined that impairment testing of the Company’s intangible assets was not deemed necessary as of September 30, 2022. Therefore, no impairment charge is required.

 

Goodwill

 

A summary of the goodwill assets is presented below:

 

Goodwill  Muscle Maker Grill   Pokemoto   SuperFit Food   Total 
Goodwill, net at December 31, 2021  $570,000   $1,798,399   $258,000   $2,626,399 
Impairment of goodwill   -    -    -    - 
Goodwill, net at September 30, 2022  $570,000   $1,798,399   $258,000   $2,626,399 

 

The Company determined that impairment testing of the Company’s goodwill was not deemed necessary as of September 30, 2022. Therefore, no impairment charge is required.

 

 

MUSCLE MAKER, INC. AND SUBSIDIARIES

 

Notes to Unaudited Condensed Consolidated Financial Statements