4. ASSETS HELD FOR SALE

The Company entered into Letters of Intent for the sale of its Hooters Nottingham and Hooters Tacoma locations in the first quarter of 2018 and the assets of those operations were reclassified to Assets Held for Sale with impairment charges recognized totaling $1.7 million recognized in the first six months of 2018. The impairment charges primarily consisted of impairment of goodwill and reversal of approximately $720 thousand of foreign exchange losses previously classified in Other Comprehensive loss.

As of September 30, 2018, the letters of intent for Hooters Nottingham and Hooters Tacoma have expired. Management is continuing to explore potential to sell both locations, however there is not a specific program underway currently to locate a buyer or that would otherwise indicate that a disposal is imminent. Accordingly, as of September 30, 2018, management determined that it was appropriate to reclassify those locations from held for sale to operating assets. Management believes that the carrying amount of the assets, following the $1.7 million impairment charge recorded during the nine months ended September 30, 2018, continues to reflect the net realizable value of the properties and that no additional impairment adjustment is warranted at this time.