What was the accumulated amortization for Annex Brands' trademarks and other intangibles in 2023?

According to Annex Brands' 2025 Franchise Disclosure Document, the accumulated amortization for trademarks and other intangibles was $(1,134,000) in 2023. This figure represents the total amount of amortization expense that has been recognized against the value of Annex Brands' trademarks and other intangible assets up to September 30, 2023. Amortization is the systematic allocation of the cost of an intangible asset over its useful life, similar to depreciation for tangible assets.

For a prospective Annex Brands franchisee, understanding accumulated amortization is crucial for assessing the net value of the company's intangible assets. The table shows the original value of trademarks and other intangibles at $823,000. After subtracting the accumulated amortization of $(1,134,000), the net value of these assets is reflected as a lower figure on the balance sheet. This indicates how much of the initial value has already been expensed.

It's important to note that while the trademarks and other intangibles had an initial value, the accumulated amortization exceeding that value suggests that these assets may have been subject to impairment or write-downs over time. This could be due to various factors, such as changes in market conditions or the perceived value of the brand. Franchisees should consider this when evaluating the overall financial health and stability of Annex Brands.

Reviewing the notes to the consolidated financial statements provides further context, as it describes the accounting policies Annex Brands uses for intangible assets, including how they assess impairment. Understanding these policies can give a franchisee a clearer picture of how Annex Brands manages and values its intangible assets, which are critical to the franchise system.