Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net

Property and Equipment, Net
12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net



Property and equipment, net consists of the following at December 31, 2020 and 2019:


    December 31, 2020     December 31, 2019  
Leasehold improvements   $ 7,301,908     $ 7,926,789  
Restaurant furniture and equipment     2,132,726       3,032,859  
Construction in progress     5,450       650  
Office and computer equipment     125,535       62,304  
Office furniture and fixtures     59,635       169,034  
      9,625,254       11,191,636  
Accumulated depreciation and amortization     (5,922,360 )     (5,561,146 )
    $ 3,702,894     $ 5,630,490  


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.