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GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended
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Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS, NET The Company’s intangible assets include trademarks, franchisee agreements, franchise license, domain names, customer list, proprietary recipes and non-compete agreements. The Company’s trademark – Muscle Maker had an indefinite life as of December 31, 2021. The Company determined that as of January 1, 2022, the trademark – Muscle Maker had a finite life of 3 years and will be amortizing the value over the new estimate life. The other intangible assets are amortized over useful lives ranging from 2 to 13 years. MUSCLE MAKER, INC. & SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A summary of the intangible assets is presented below: SCHEDULE OF INTANGIBLE ASSETS
Intangible Assets |  | Intangible assets, net at December 31, 2022 |  |  | Acquisitions |  |  | Impairment of intangible assets |  |  | Amortization expense |  |  | Intangible assets, net at December 31, 2021 |  |  | Acquisitions |  |  | Impairment of intangible assets |  |  | Amortization expense |  |  | Intangible assets, net at December 31, 2020 |
Trademark Muscle Maker Grill |  | $ | 669,992 |  |  | $ | — |  |  | $ | (347,110 | ) |  | $ | (508,551 | ) |  | $ | 1,525,653 |  |  | $ | — |  |  | $ | (998,347 | ) |  | $ | — |  |  | $ | 2,524,000 |
Franchise Agreements |  |  | 135,659 |  |  |  | — |  |  |  | — |  |  |  | (26,780 | ) |  |  | 162,439 |  |  |  | — |  |  |  | (141,561 | ) |  |  | (50,278 | ) |  |  | 354,278 |
Trademark SuperFit |  |  | 29,080 |  |  |  | — |  |  |  | — |  |  |  | (8,995 | ) |  |  | 38,075 |  |  |  | 45,000 |  |  |  | — |  |  |  | (6,925 | ) |  |  | — |
Domain Name SuperFit |  |  | 80,778 |  |  |  | — |  |  |  | — |  |  |  | (24,986 | ) |  |  | 105,764 |  |  |  | 125,000 |  |  |  | — |  |  |  | (19,236 | ) |  |  | — |
Customer List SuperFit |  |  | 90,470 |  |  |  | — |  |  |  | — |  |  |  | (27,985 | ) |  |  | 118,455 |  |  |  | 140,000 |  |  |  | — |  |  |  | (21,545 | ) |  |  | — |
Proprietary Recipes SuperFit |  |  | 103,396 |  |  |  | — |  |  |  | — |  |  |  | (31,982 | ) |  |  | 135,378 |  |  |  | 160,000 |  |  |  | — |  |  |  | (24,622 | ) |  |  | — |
Non-Compete Agreement SuperFit |  |  | 106,751 |  |  |  | — |  |  |  | — |  |  |  | (86,588 | ) |  |  | 193,339 |  |  |  | 260,000 |  |  |  | — |  |  |  | (66,661 | ) |  |  | — |
Trademark Pokemoto |  |  | 117,881 |  |  |  | — |  |  |  | — |  |  |  | (34,981 | ) |  |  | 152,862 |  |  |  | 175,000 |  |  |  | — |  |  |  | (22,138 | ) |  |  | — |
Franchisee License Pokemoto |  |  | 2,322,125 |  |  |  | — |  |  |  | — |  |  |  | (277,348 | ) |  |  | 2,599,473 |  |  |  | 2,775,000 |  |  |  | — |  |  |  | (175,527 | ) |  |  | — |
Proprietary Recipes Pokemoto |  |  | 866,614 |  |  |  | — |  |  |  | — |  |  |  | (161,302 | ) |  |  | 1,027,916 |  |  |  | 1,130,000 |  |  |  | — |  |  |  | (102,084 | ) |  |  | — |
Non-Compete Agreement Pokemoto |  |  | 88,110 |  |  |  | — |  |  |  | — |  |  |  | (240,000 | ) |  |  | 328,110 |  |  |  | 480,000 |  |  |  | — |  |  |  | (151,890 | ) |  |  | — |
|  | $ | 4,610,856 |  |  | $ | — |  |  | $ | (347,110 | ) |  | $ | (1,429,498 | ) |  | $ | 6,387,464 |  |  | $ | 5,290,000 |  |  | $ | (1,139,908 | ) |  | $ | (640,906 | ) |  | $ | 2,878,278 |
Amortization expense related to intangible assets was $1,429,498 and $640,906 for the years ended December 31, 2022 and 2021, respectively. The estimated future amortization expense is as follows: SCHEDULE OF FUTURE AMORTIZATION EXPENSE
For the year ended December 31, |  | 2023 |  |  | 2024 |  |  | 2025 |  |  | 2026 |  |  | 2027 |  |  | Thereafter |  |  | Total |
Trademark Muscle Maker Grill |  | $ | 334,997 |  |  | $ | 334,996 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 669,992 |
Franchise Agreements |  |  | 26,780 |  |  |  | 26,853 |  |  |  | 26,780 |  |  |  | 26,780 |  |  |  | 26,780 |  |  |  | 1,686 |  |  |  | 135,659 |
Trademark SuperFit |  |  | 8,995 |  |  |  | 9,020 |  |  |  | 8,995 |  |  |  | 2,070 |  |  |  | — |  |  |  | — |  |  |  | 29,080 |
Domain Name SuperFit |  |  | 24,986 |  |  |  | 25,055 |  |  |  | 24,986 |  |  |  | 5,751 |  |  |  | — |  |  |  | — |  |  |  | 80,778 |
Customer List SuperFit |  |  | 27,985 |  |  |  | 28,061 |  |  |  | 27,985 |  |  |  | 6,439 |  |  |  | — |  |  |  | — |  |  |  | 90,470 |
Proprietary Recipes SuperFit |  |  | 31,982 |  |  |  | 32,071 |  |  |  | 31,982 |  |  |  | 7,361 |  |  |  | — |  |  |  | — |  |  |  | 103,396 |
Non-Compete Agreement SuperFit |  |  | 86,588 |  |  |  | 20,163 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 106,751 |
Trademark Pokemoto |  |  | 34,981 |  |  |  | 35,077 |  |  |  | 34,981 |  |  |  | 12,842 |  |  |  | — |  |  |  | — |  |  |  | 117,881 |
Franchisee License Pokemoto |  |  | 277,348 |  |  |  | 278,108 |  |  |  | 277,348 |  |  |  | 277,348 |  |  |  | 277,348 |  |  |  | 934,625 |  |  |  | 2,322,125 |
Proprietary Recipes Pokemoto |  |  | 161,303 |  |  |  | 161,744 |  |  |  | 161,303 |  |  |  | 161,303 |  |  |  | 161,303 |  |  |  | 59,658 |  |  |  | 866,614 |
Non-Compete Agreement Pokemoto |  |  | 88,110 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 88,110 |
Total |  | $ | 1,104,055 |  |  | $ | 1,124,702 |  |  | $ | 594,359 |  |  | $ | 499,893 |  |  | $ | 465,430 |  |  | $ | 995,972 |  |  | $ | 4,610,856 |
The Company sustained operating and cash flow losses from inception which formed a basis for performing an impairment test of its Intangible Assets. The Company performed a recoverability test on the Company’s intangible assets based on its projected future undiscounted cash flows. As a result of a failed recoverability test the Company proceeded to measure the fair value of those assets based on the future discounted cash flows and recorded an impairment charge in the aggregate amount of $347,110 and $1,139,908 during the years ended December 31, 2022 and 2021, respectively. The key assumptions used in the estimates of projected cash flows utilized in both the test and measurement steps of the impairment analysis were projected revenues and royalty payments. These forecasts were based on actual revenues and take into account recent developments as well as the Company’s plans and intentions. MUSCLE MAKER, INC. & SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A summary of the goodwill assets is presented below: SCHEDULE OF GOODWILL ASSETS
Goodwill |  | Muscle Maker Grill |  |  | Pokemoto |  |  | SuperFit Food |  |  | Total |
Goodwill, net at January 1, 2021 |  | $ | 656,348 |  |  | $ | — |  |  | $ | — |  |  | $ | 656,348 |
Acquisitions |  |  | — |  |  |  | 1,798,399 |  |  |  | 258,000 |  |  |  | 2,056,399 |
Impairment of goodwill |  |  | (86,348 | ) |  |  | — |  |  |  | — |  |  |  | (86,348 | )
Goodwill, net at December 31, 2021 |  | $ | 570,000 |  |  | $ | 1,798,399 |  |  | $ | 258,000 |  |  | $ | 2,626,399 |
Goodwill net |  | $ | 570,000 |  |  | $ | 1,798,399 |  |  | $ | 258,000 |  |  | $ | 2,626,399 |
Acquisitions |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Impairment of goodwill |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Goodwill, net at December 31, 2022 |  | $ | 570,000 |  |  | $ | 1,798,399 |  |  | $ | 258,000 |  |  | $ | 2,626,399 |
Goodwill, net |  | $ | 570,000 |  |  | $ | 1,798,399 |  |  | $ | 258,000 |  |  | $ | 2,626,399 |
During the years ended December 31, 2022 and 2021, the Company performed a quantitative goodwill assessment and determined the fair value of Muscle Maker Grill restaurant using a discounted cash flow model. The discounted cash flow model relied on making assumptions, such as the extent of the economic downturn related to the COVID-19 pandemic, the expected timing of recovery, and the expected growth in profitability and discount rate, which we believed were appropriate. The results of our 2021 goodwill impairment test indicated that the estimated carrying value of Muscle Maker Grill exceeded its fair value amount. As a result, we recorded a goodwill impairment charge of $86,348 during the year ended December 31, 2021. No impairment charge was recorded during the year ended December 31, 2022.

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