Property and Equipment, Net
|12 Months Ended|
Dec. 31, 2020
|Property, Plant and Equipment [Abstract]|
|Property and Equipment, Net||
5. PROPERTY AND EQUIPMENT, NET
Property and equipment, net consists of the following at December 31, 2020 and 2019:
As discussed in Note 1, the COVID-19 outbreak in the United States has resulted in a significant impact throughout the hospitality industry. The impact has varied by state/geographical area within the United States at various intervals since the pandemic has been declared. Accordingly, the operating results and cash flows at the store level have varied significantly leading to an analysis of impairment at the store level for each quarter end in 2020, including December 31, 2020. Several stores were permanently or temporarily closed during 2020 while others are operating at reduced capacity. Based on the assessment of recoverability, an impairment charge of $832,821 for property and equipment was recorded during the year ended December 31, 2020.
During the year ended December 31, 2019, the Company recorded an impairment of property and equipment of $1,231,282.
Depreciation expense was $1,158,915 and $1,468,576 for the years ended December 31, 2020 and 2019, respectively.
The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef