Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT, NET

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PROPERTY AND EQUIPMENT, NET
 3 Months Ended
Mar. 31, 2022
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

5. PROPERTY AND EQUIPMENT, NET

 

Property and equipment, net consists of the following:

 

(in thousands)   March 31, 2022     December 31, 2021  
Leasehold improvements   $ 5,535     $ 5,511  
Restaurant furniture and equipment     2,768       2,768  
Construction in progress     41       20  
Office and computer equipment     37       33  
Office furniture and fixtures     63       57  
Property,plant and equipment, gross     8,444       8,389  
Accumulated depreciation and amortization     (5,403 )     (5,274 )
Property, plant and equipment, net    $ 3,041     $ 3,115  

 

As of March 31, 2021, we performed an analysis of the recoverability of the carrying value of our property and equipment. Based on the analysis, an impairment charge of approximately $0.3 million was recorded for the three months ended March 31, 2021. The impairment recognized during the three months ended March 31, 2021 was primarily the result of the impact of the COVID-19 outbreak in the United States, which had a significant impact throughout the hospitality industry. The impact varied by state/geographical area within the United States at various intervals during the pandemic and, therefore, the operating results and cash flows at the store level varied significantly.

 

Depreciation expense was $0.1 million for each of the three months ended March 31, 2022 and 2021.