Goodwill and Other Intangible Assets, Net
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net

NOTE 8 – GOODWILL AND OTHER INTANGIBLE ASSETS, NET

 

The Company’s intangible assets include a trademark with an indefinite useful life as well as franchise agreements which are amortized over useful lives of thirteen years and five years, respectively.

 

A summary of the intangible assets is presented below:

 

Intangible Assets   Trademark     Franchise Agreements     Non-Compete Agreement     Total  
Intangible assets, net at December 31, 2017   $ 2,524,000       642,429       15,451       3,181,880  
Amortization expense     -       (63,808 )     (2,365 )     (66,173 )
Impairment of intangible assets     -       -       (13,086 )     (13,086 )
Intangible assets, net at December 31, 2018     2,524,000     $ 578,621     $ -     $ 3,102,621  
Amortization expense     -       (63,806 )     -       (63,806 )
Intangible assets, net at December 31, 2019   $ 2,524,000     $ 514,815     $ -     $ 3,038,815  
                                 
Weighted average remaining amortization period at December 31, 2019 (in years)             8.1       0.0          

 

Amortization expense related to intangible assets was $63,806 and $66,173 for the years ended December 31, 2019 and 2018, respectively

 

The Company sustained operating and cash flow losses from inception which formed a basis for performing an impairment test of its Intangible Assets. As of December 31, 2019 and 2018, the Company performed a recoverability test on the franchise agreements that passed the test based on its projected future undiscounted cash flows generated through the asset’s use and eventual disposal and no further action was required.

 

The estimated future amortization expense is as follows:

 

 For the Year Ended  December 31,       Franchise  Agreements  
2020     $ 63,981  
2021       63,806  
2022       63,806  
2023       63,806  
2024       63,981  
Thereafter         195,435  
      $ 514,815