|12 Months Ended|
Dec. 31, 2021
|Subsequent Events [Abstract]|
15. SUBSEQUENT EVENTS
The Company has evaluated subsequent events from the balance sheet date through the date at which the consolidated and combined financial statements were available to be issued, and there are no other items requiring disclosure except the following and the items discussed in Note 8 with respect to debt and notes payable.
In March 2022, the Company terminated its international Master Franchise Agreement. The Master Franchisee had not met the requirements in the agreement and all international stores had been closed. The Master Franchisee notified the Company that it would not be reopening these stores. The Company recorded $0.7 million in cancellation income in the first quarter of 2022.
In March 2022, the Company received a dividend from its investment in Hooters of America of approximately $0.1 million.
In March 2022, the Company entered into an 8% senior unsecured convertible debenture and warrant financing arrangement from which the Company has received $1.3 million in bridge financing.
In February and March 2022, eight of Company-owned stores received $0.3 million in cash under notes payable to Toast Capital Loans. The terms of the notes require payment of 13.2% of daily credit card sales of the eight stores until the notes are paid in full. The terms of the notes are 270 days and the implied intertest rate is 12.75% per year.
In February 2022, the Company settled outstanding accounts with a supplier in the amount of $0.3 million for an agreed amount of $0.08 million. The Company recorded $0.2 million in other income in the first quarter of 2022.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef