Quarterly report pursuant to Section 13 or 15(d)

SUBSEQUENT EVENTS

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SUBSEQUENT EVENTS
 9 Months Ended
Sep. 30, 2022
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

13. SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events from the balance sheet date through the date at which the condensed consolidated financial statements were available to be issued, and there are no items requiring disclosure other than the following:

 

In October and November 2022, the Company received related party advances in the aggregate of $0.3 million from an entity in which the Chief Financial Officer serves as an officer but has no ownership interest.

 

In November 2022, the Company received related party advances in the aggregate of $0.2 million from an entity in which our Chairman and Chief Executive Officer has an ownership interest and serves as the Chief Executive Officer. This note and the previous note received in August 2022 have a maturity date of December 15, 2022.

 

At the end of October and through November 30, 2022, the Company closed five stores.

 

  ● A PizzaRev store was closed at the expiration of the lease.
  ● A LBB store in Portland Orgon was closed due to operational and safety concerns. This store was reopened in June but the situation in the area the store is located does not allow for the store to operate safely at nighttime.
  ● A LBB store located in Seattle Washington, an ABC store located in New York and a PizzeRev store located in California were closed due to the stores not being cashflow positive.

 

During the fourth quarter of 2022, the Company will review for impairment the right-of-use assets and fixed assets in these stores. The right-of-use assets and fixed assets for these locations at September 30, 2022 was $2.8 million.

 

The Board of Directors of the Company have set December 30, 2022, for the annual meeting of stockholders.