What were the net intangible assets for Annex Brands in 2024?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
:
| 2024 | 2023 | |
|---|---|---|
| Franchise rights and non-competes | $ - | $ 589,000 |
| Trademarks and other intangibles | 823,000 | 823,000 |
| 823,000 | 1,412,000 | |
| Less: accumulated amortization | (600,000) | (1,134,000) |
| $ 223,000 | $ 278,000 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the company's net intangible assets totaled $223,000 as of September 30, 2024. This figure represents the value of intangible assets like franchise rights, non-compete agreements, trademarks, and other similar assets, less accumulated amortization. In the previous year, as of September 30, 2023, Annex Brands' net intangible assets were $278,000. This indicates a decrease in net intangible assets from 2023 to 2024.
Specifically, the FDD breaks down the components of these intangible assets. In 2024, trademarks and other intangibles were valued at $823,000, while franchise rights and non-competes were valued at $0. The accumulated amortization was ($600,000). In 2023, trademarks and other intangibles were valued at $823,000, franchise rights and non-competes were valued at $589,000, and the accumulated amortization was ($1,134,000).
Intangible assets are amortized over time, reflecting their declining value as they are used. The decrease in net intangible assets from 2023 to 2024 could be due to increased amortization expenses or the disposal of certain intangible assets. A prospective franchisee should understand how Annex Brands values and amortizes these assets, as it can impact the company's financial performance and valuation. Understanding the nature and amortization schedule of these intangible assets can provide insight into their contribution to Annex Brands' revenue generation and long-term value.