What was the net carrying amount for Amerispec Inspection Services as of December 31, 2023?
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 net carrying amount as of December 31, 2023, was $10,258,260. This figure represents the value of goodwill related to acquisitions of businesses, taking into account accumulated amortization. The gross carrying amount was $11,090,844, and the accumulated amortization was ($832,584), resulting in the net carrying amount.
In simpler terms, the net carrying amount reflects the book value of the company's goodwill after accounting for amortization, which is the gradual reduction of the asset's value over time. Goodwill typically arises when a company acquires another business, and it represents the intangible assets that are not separately identifiable, such as brand reputation or customer relationships.
For a prospective Amerispec Inspection Services franchisee, this information provides insight into the financial management and asset valuation practices of the company. Understanding how goodwill is accounted for can be useful in assessing the overall financial health and stability of the franchisor. It's important to note that goodwill is subject to impairment testing, and if its value declines, it could impact the company's financial statements.