What was the net carrying amount of goodwill 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 of goodwill as of December 31, 2023, was $10,258,260. Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business acquisitions. It is an intangible asset that reflects the value of customer relationships, workforce, and expected future profits.
The goodwill is subject to amortization. Amortization expense of goodwill was approximately $833,000 during the period ended December 31, 2023.
Goodwill is tested for impairment when events or circumstances indicate that the fair value of the entity may be less than the carrying value. No impairment indicators existed as of December 31, 2023. For a prospective franchisee, understanding the nature and accounting treatment of goodwill is important because it can affect the reported financial position and profitability of Amerispec Inspection Services.