What was the amortization expense for Craters & Freighters in 2023?

According to Craters & Freighters' 2025 Franchise Disclosure Document, the amortization expense for the year ended December 31, 2023, was $101,989. This figure reflects the expense recognized from the amortization of software development assets. These assets are amortized using the straight-line method over a three-year period.

Amortization is the process of spreading the cost of an intangible asset over its useful life. In this case, Craters & Freighters amortizes its software development assets, meaning they recognize a portion of the cost of these assets as an expense each year. The $101,989 represents the portion of the cost of the software development assets that Craters & Freighters recognized as an expense in 2023.

For a prospective franchisee, understanding amortization expense is crucial because it impacts the company's profitability. While it's a non-cash expense, it reduces the company's reported net income. Consistent amortization expenses, like the $99,763 in 2022 and $101,989 in 2023, may indicate ongoing investments in software development, which could be a positive sign of Craters & Freighters' commitment to technology and innovation.