What was the value of Bumble Roofing's internally developed software in 2022?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
angible Assets (Continued)
Intangible assets consists of the following at September 30:
| Estimated Useful Life | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Franchise agreements | 7 years | $ 55,934,000 | $ 55,934,000 | $ 30,710,000 |
| Internally developed software | 5 years | 7,650,056 | 6,935,010 | 6,617,000 |
| Trademarks | 15 years | 4,286,000 67,870,056 | 4,286,000 67,155,010 | 1,840,000 39,167,000 |
| Less: accumulated amortizatio | n | (23, 109, 087) 44,760,969 | (12,903,224) 54,251,786 | (5,559,873) 33,607,127 |
| Goodwill | Indefinite | 193,217 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the value of its internally developed software in 2022 was $6,617,000. This software is amortized on a straight-line basis over 5 years.
Bumble Roofing capitalizes certain costs related to developing or obtaining internal-use software. These costs include direct external expenses, internal payroll, and payroll-related costs for employees directly involved in the project. Costs incurred during the preliminary project stage, as well as maintenance and training costs, are expensed as they occur. Capitalization begins when the preliminary project stage is complete, management authorizes funding, project completion is probable, and the software will be used as intended. Capitalization ends when the project is substantially complete and ready for use.
It's important to note that Bumble Roofing periodically evaluates whether changes necessitate revising the estimated useful life of the internally developed software. Management also assesses whether changes have occurred to determine if all intangible assets are recoverable. This indicates that the value of the software could change over time due to various factors, including technological advancements or changes in the company's business strategy. Goodwill, another intangible asset, is not amortized but is tested for impairment annually or when events occur that might reduce its fair value.