Annual report pursuant to Section 13 and 15(d)

PROPERTY AND EQUIPMENT, NET

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PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

6. PROPERTY AND EQUIPMENT, NET

 

Property and equipment, net consists of the following:

 

(in thousands)   December 31, 2021     December 31, 2020  
Leasehold improvements   $ 5,511     $ 7,302  
Restaurant furniture and equipment     2,768       2,133  
Construction in progress     20       5  
Office and computer equipment     33       125  
Office furniture and fixtures     57       60  
Property,plant and equipment, gross     8,389       9,625  
Accumulated depreciation and amortization     (5,274 )     (5,922 )
Property, plant and equipment, net    $ 3,115     $ 3,703  

 

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 2021 and 2020, including December 31, 2021 and 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 $0.4 million and $0.8 million for property and equipment was recorded during the years ended December 31, 2021 and 2020, respectively.

 

Depreciation expense was $0.6 million and $1.2 million for the years ended December 31, 2021 and 2020, respectively.