What accounting standard does Dryject use for amortizing goodwill?

According to Dryject's 2025 Franchise Disclosure Document, the company amortizes goodwill using a specific accounting standard. The accounting of the purchase of 100% of the membership units in 2016 resulted in the recognition of goodwill of $1,509,159. Dryject has adopted ASC 350-20-35-63, which allows private companies the option of amortizing goodwill over ten years using the straight-line method.

For a prospective Dryject franchisee, this means that the goodwill associated with the company's acquisition is being systematically expensed over a ten-year period. The initial goodwill recognized was $1,509,159. This accounting treatment impacts Dryject's financial statements by reducing the reported goodwill asset and recognizing amortization expense each year.

The use of ASC 350-20-35-63 is notable because it is an option available to private companies, allowing them to amortize goodwill rather than test it for impairment annually, which is the requirement under standard GAAP for public companies. This choice can reduce the complexity and cost of financial reporting for Dryject. The straight-line method means that the same amount of amortization expense is recognized each year, providing a consistent and predictable impact on the company's income statement.

This accounting practice provides insight into how Dryject manages its financial reporting and the choices it makes as a private company. Prospective franchisees may want to understand the implications of goodwill amortization on Dryject's profitability and financial health, as it can affect key financial ratios and metrics.