Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v3.8.0.1
Discontinued Operations
 12 Months Ended
Dec. 31, 2017
Discontinued operations  
Discontinued Operations

5. DISCONTINUED OPERATIONS

 

In June 2016, the Company approved a plan to exit the Australia and Eastern Europe markets, authorizing management to sell or close its five Hooters stores in Australia and its one store in Budapest.

 

The Company completed the sale of the Hooters Australia and Budapest stores during the third quarter of 2016, transferring substantially all of the assets and liabilities of those operations to the local operating groups. In both cases, the Company did not receive any proceeds from the transfer, although in the case of Hooters Australia, the Company retained a five-year option to repurchase a 20% interest in the stores for $1.

 

The major line items comprising the loss of discontinued operations are as follows:

 

   

Year ended

December 31, 2016

  
       
Revenue   $ 3,427,928  
Restaurant cost of sales     1,196,734  
Restaurant operating expenses     2,780,441  
General and administrative expenses     296,343  
Depreciation and amortization     436,144  
Other     22,893  
Loss of discontinued operations     (1,304,627 )
Loss on write-down of net assets     (3,762,253 )
Total pretax loss of discontinued operations     (5,066,880 )
Income tax     -  
Loss on discontinued operations   $ (5,066,880 )