What was the accumulated amortization for Engel & Volkers capitalized software in 2024?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Office equipment | $ 368,454 | $ 352,302 |
| Furniture and fixtures | 570,782 | 564,144 |
| Leasehold improvements | 935,553 | 935,553 |
| 1,874,789 | 1,851,999 | |
| Less: accumulated depreciation and | 1,494,803 | 1,310,118 |
| amortization | ||
| Property and equipment, net | $ 379,986 | $ 541,881 |
Depreciation and amortization expense was $184,686, $216,708 and $144,300 for the years e
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the accumulated amortization for capitalized software as of December 31, 2024, was $3,061,001. This figure represents the total amount of amortization that has been recognized against the capitalized software assets up to that point in time. Capitalized software refers to software costs that Engel & Volkers has recognized as assets on its balance sheet because they are expected to provide future economic benefits. These costs are then systematically expensed over their useful life through amortization.
The accumulated amortization balance is a contra-asset account, meaning it reduces the net book value of the capitalized software on Engel & Volkers's balance sheet. The net value of capitalized software, which is the difference between the original cost ($6,201,324 in 2024) and the accumulated amortization, represents the remaining value of the software that has not yet been expensed. This net value reflects the future economic benefits that Engel & Volkers expects to derive from the software.
For a prospective Engel & Volkers franchisee, understanding the amortization of capitalized software can provide insights into the company's technology investments and how these investments are being accounted for. It's also worth noting that the amortization expense for 2024 alone was $1,495,138, as detailed in another section of the financial statements. This indicates the pace at which Engel & Volkers is recognizing the cost of its software assets. Reviewing these figures over time can help assess the company's ongoing investment in and reliance on software technology.