(5) Intangible Assets, net

The Company has intangible assets that consist of liquor licenses and lease interest assets. The liquor licenses are indefinite-lived assets and are not subject to amortization. The lease interest assets are amortized to occupancy costs on a straight-line basis over the remaining term of each respective lease. Amortization of the lease interest assets is expected to be approximately $36,000 per year, for the remaining useful life.

A reconciliation of the Company’s intangible assets as of July 2, 2017 and January 1, 2017, respectively, are presented in the table below:


	Remaining
	estimated									Less		Non-
	useful life	Original				Accumulated		Net Book		Current		Current
(in thousands)	(years)	Cost		Impairment		Amortization		Value		Portion(1)		Portion
Balance at July 2, 2017
Lease interest assets	22.6	$	1,091	$	—	$	(268)	$	823	$	(36)	$	787
Liquor licenses			1,760		—		—		1,760		—		1,760
Total		$	2,851	$	—	$	(268)	$	2,583	$	(36)	$	2,547


	Remaining
	estimated										Less		Non-
	useful life	Original					Accumulated		Net Book		Current		Current
(in thousands)	(years)	Cost		Impairment			Amortization		Value		Portion(1)		Portion
Balance at January 1, 2017
Lease interest assets	23.1	$	1,417	$	(326)	(2)	$	(249)	$	842	$	(37)	$	805
Liquor licenses			1,810		(50)	(3)		—		1,760		—		1,760
Total		$	3,227	$	(376)		$	(249)	$	2,602	$	(37)	$	2,565

⁽¹⁾

The current portion is included in prepaid expenses and other current assets on the consolidated balance sheets.

⁽²⁾

Recorded in connection with the restaurant optimization.

⁽³⁾

Based upon a quantitative analysis of this intangible asset, the Company determined that the fair value of one liquor license was less than its carrying value.