Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

v3.20.2
Property and Equipment, Net
 9 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net

5. PROPERTY AND EQUIPMENT, NET

 

Property and equipment, net consists of the following at September 30, 2020 and December 31, 2019:

 

    September 30, 2020     December 31, 2019  
              (Note 1)  
Leasehold improvements   $ 7,136,742     $ 7,926,789  
Restaurant furniture and equipment     3,321,987       3,032,859  
Construction in progress     5,450       650  
Office and computer equipment     154,635       62,304  
Office furniture and fixtures     59,635       169,034  
      10,678,449       11,191,636  
Accumulated depreciation and amortization     (6,538,824 )     (5,561,146 )
    $ 4,139,625     $ 5,630,490  

 

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 in the three months ended September 30, 2020. Several stores were permanently closed during the period while others are operating at reduced capacity. Based on the assessment of recoverability, an impairment charge of $555,702 and $685,333 for property and equipment was recorded for the three and nine month periods ended September 30, 2020, respectively.