Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.5.0.2
Discontinued Operations
6 Months Ended
Jun. 30, 2016
Discontinued operations  
Discontinued Operations

4. DISCONTINUED OPERATIONS

 

In June 2016, the Company approved a plan to exit the Australia and Eastern Europe markets, authorizing management to sell or close its five Hooters stores in Australia and its one store in Budapest. Management expects to complete negotiation of terms during the third quarter of 2016, and complete disposal of the operations by the end of 2016. If the Company is unable to come to acceptable terms for the sale of the stores, management intends to close the Australia and Budapest operations.

  

Carrying amount of major classes of assets and liabilities included as part of discontinued operations:

 

    June 30, 2016     December 31, 2015  
Cash   $ 177,404     $ 303,471  
Accounts receivable     21,600       19,328  
Inventory     111,899       157,079  
Property, plant and equipment     4,162,347       4,497,168  
Goodwill and intangible assets     480,182       370,138  
Other Assets     460,763       500,546  
Valuation allowance     (3,740,688 )     -  
Total     1,673,507       5,982,730  
                 
Accounts payable and accrued liabilities     1,363,232       889,177  
Due to affiliates     414,595       390,779  
Deferred rent     54,724       58,647  
Total     1,832,550       1,338,603  
                 
Net assets (liabilities) of discontinued operations   $ (159,043 )   $ 4,644,126  

 

Major line items constituting pre-tax loss of discontinued operations:

 

    Six Months Ended  
    June 30, 2016     June 30, 2015  
             
Revenue   $ 2,970,401     $ 4,308,500  
Restaurant cost of sales     1,042,543       1,426,151  
Restaurant operating expenses     2,450,557       2,825,018  
Restaurant pre-opening and closing expenses     -       258,850  
General and administrative expenses     254,174       467,062  
Depreciation and amortization     436,144       227,693  
Other     22,893       33,229  
Loss of discontinued operations     (1,235,909 )     (929,503 )
Loss on classification as held for sale     (3,876,161 )     -  
Total pretax loss of discontinued operations   $ (5,112,070 )   $ (929,503 )
                 
Income tax     -       -  
Loss on discontinued operations   $ (5,112,070 )   $ (929,503 )