What was the accumulated amortization for Amerispec Inspection Services as of December 31, 2024?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
Depreciation expense was approximately $98,000 and $7,500 for the year ended December 31, 2024 and the period ended December 31, 2023, respectively.
Note 6. Goodwill and Intangible Assets, As Restated
The changes in the carrying value of goodwill consisted of the following as of December 31:
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |
|---|---|---|---|
| Beginning balance | $ - | $ - | $ - |
| Goodwill related to acquisitions of businesses | 11,090,844 | - | 11,090,844 |
| Amortization | - | (832,584) | (832,584) |
| Balance, December 31, 2023 | 1 |
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the accumulated amortization as of December 31, 2024, was $2,057,257. This figure represents the total amount of amortization that has been recognized against the company's assets up to that date. Amortization is the systematic reduction of the carrying value of an intangible asset, such as goodwill, over its useful life.
This accumulated amortization impacts the net carrying amount of Amerispec Inspection Services's assets. Specifically, the gross carrying amount of goodwill was $15,648,599, but after subtracting the accumulated amortization of $2,057,257, the net carrying amount was $13,591,342 as of December 31, 2024. This net figure is what would appear on the company's balance sheet.
For a prospective Amerispec Inspection Services franchisee, understanding these figures is crucial for assessing the financial health and stability of the franchisor. Accumulated amortization can provide insights into how the franchisor values its intangible assets and manages its financial reporting. It's also important to note that the company amortizes goodwill on a straight-line basis over 10 years and tests goodwill for impairment at the entity level, which is a standard accounting practice.