Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT, NET

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PROPERTY AND EQUIPMENT, NET
6 Months Ended
Jun. 30, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

4. PROPERTY AND EQUIPMENT, NET

 

Property and equipment, net consists of the following:

 

    June 30, 2021     December 31, 2020  
Leasehold improvements   $ 6,929,994     $ 7,301,908  
Restaurant furniture and equipment     1,979,814       2,132,726  
Construction in progress     650       5,450  
Office and computer equipment     112,073       125,535  
Office furniture and fixtures     61,328       59,635  
 

Property, plant and equipment, gross

    9,083,859       9,625,254  
Accumulated depreciation and amortization     (6,175,793 )     (5,922,360 )
Property, plant and equipment, net   $ 2,908,066     $ 3,702,894  

 

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 beginning at the end of the first quarter of 2020 and continuing through June 30, 2021. Several stores were permanently or temporarily closed during 2020 and 2021 while others are operating at reduced capacity. Based on the assessment of recoverability, an impairment charge of approximately $255,115 was recorded for property and equipment during the six months ended June 30, 2021. During the three and six months ended June 30, 2020, the Company recorded an impairment charge of $129,631 for property and equipment and $13,374 for other assets

 

Depreciation expense was $276,777 and $554,330 for the three and six months ended June 30, 2021 and 2021, respectively. Depreciation expense was $324,212 and $649,084 for the three and six months ended June 30, 2020 and 2020, respectively.

 

 

Amergent Hospitality Group, Inc and Subsidiaries

Notes to the Condensed Consolidated and Combined Financial Statements