What was the amount of amortization for Pump It Up's goodwill during the year 2024?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Leasehold Improvements | $ 120,580 | $ 120,580 |
| Furniture and Fixtures | 1,310 | - |
| Computer Equipment | 3,280 | 3,280 |
| Total | 125,170 | 123,860 |
| Less: Accumulated Depreciation | (67,448) | (46,070) |
| Property, Plant, and Equipment, Net | $ 57,722 | $ 77,790 |
Depreciation expense for the years ended December 31, 2024 and 2023, was $21,379 and $21,239, respectively.
NOTE 4 GOODWILL AND INTANGIBLE ASSETS
Goodwill as of, and changes in the carrying amount of goodwill during the years e
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the amortization expense for goodwill during the year ending December 31, 2024, was $83,060. The document also provides a breakdown of the goodwill account, showing a balance of $830,596 on December 31, 2022, with accumulated amortization of $599,095, resulting in a net amount of $231,501.
In 2023, there were no additions to goodwill, and amortization of $83,060 was recorded, bringing the balance on December 31, 2023, to $830,596 with accumulated amortization of $682,155, resulting in a net amount of $148,441. Similarly, in 2024, there were no additions to goodwill, and amortization of $83,060 was recorded, resulting in a balance on December 31, 2024, of $830,596 with accumulated amortization of $765,215, and a net amount of $65,381.
This information is relevant for prospective Pump It Up franchisees as it provides insight into the company's accounting practices related to goodwill. Goodwill typically arises from acquisitions and represents the intangible assets not separately identified. Amortization of goodwill is a non-cash expense that can affect the company's net income. Understanding these figures can help a franchisee assess the financial health and stability of Pump It Up.