Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.20.2
Discontinued Operations
9 Months Ended
Sep. 30, 2020
Discontinued Operations [Abstract]  
Discontinued Operations

16.  Discontinued Operations



As described in Note 1, FFTRG previously entered into area development and franchise agreements with MOD Pizza related to the development of MOD Pizza franchised restaurant locations throughout Florida and, through 2019, had opened nine restaurant locations. In September 2019, the Company entered into an agreement with MOD Pizza to terminate the area development and franchise agreements and transferred seven of its restaurant locations, including the related assets, operations, and lease obligations, to MOD Pizza. In addition, the Company closed the remaining two locations and terminated the related lease agreements.



FFTRG’s operations as a franchisee of MOD Pizza are presented as discontinued operations in the Company’s condensed consolidated financial statements.



The carrying amount of major classes of assets and liabilities included as part of discontinued operations is as follows (in thousands):





 

 

 

 

 

 



 

 



 

September 30,

 

December 31,



 

2020

 

2019

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

 —

 

 

35 

Operating lease assets

 

 

 —

 

 

772 

Other assets

 

 

 —

 

 

185 

Discontinued operations total assets

 

$

 —

 

 

992 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

 —

 

 

Accrued expenses

 

 

 —

 

 

134 

Operating lease liability

 

 

 —

 

 

905 

Discontinued operations total liabilities

 

$

 —

 

 

1,041 



The major components of loss from discontinued operations are as follows (in thousands):



 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

For the Three Months Ended

 

For the Nine Months Ended



 

September 30,

 

September 30,



 

2020

 

2019

 

2020

 

2019

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Trade sales

 

$

 —

 

 

2,057 

 

 

 —

 

 

6,044 

Other revenue

 

 

 —

 

 

31 

 

 

 —

 

 

89 

Total revenues

 

 

 —

 

 

2,088 

 

 

 —

 

 

6,133 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of trade sales

 

 

 —

 

 

1,156 

 

 

 —

 

 

2,452 

Depreciation, amortization and accretion, net

 

 

 —

 

 

183 

 

 

 —

 

 

690 

Impairment losses

 

 

 —

 

 

3,993 

 

 

71 

 

 

6,749 

Selling, general and administrative expenses

 

 

 —

 

 

1,585 

 

 

20 

 

 

5,715 

Total costs and expenses

 

 

 —

 

 

6,917 

 

 

91 

 

 

15,606 

Pre-tax loss from discontinued operations

 

$

 —

 

 

(4,829)

 

 

(91)

 

 

(9,473)



The following are the major components of the statement of cash flows from discontinued operations (in thousands):







 

 

 

 

 

 



 

 

 

 

 

 



 

 

 

 

 

 



 

For the Nine Months Ended



 

September 30,



 

2020

 

2019

Operating activities:

 

 

 

 

 

 

Pre-tax loss from discontinued operations

 

$

(91)

 

 

(9,473)

Adjustment to reconcile pre-tax loss to net cash

 

 

 

 

 

 

used in operating activities:

 

 

 

 

 

 

Depreciation, amortization and accretion, net

 

 

 —

 

 

690 

Impairment losses

 

 

71 

 

 

6,749 

Decrease in trade inventory

 

 

 —

 

 

64 

Decrease in other assets

 

 

94 

 

 

470 

Change in operating lease assets and liabilities

 

 

(113)

 

 

(269)

Decrease in accounts payable

 

 

(2)

 

 

(57)

Decrease in accrued expenses

 

 

(134)

 

 

(540)

Net cash used in operating activities

 

$

(175)

 

 

(2,366)

Investing activities:

 

 

 

 

 

 

Cash paid for intangible assets

 

$

 —

 

 

(40)

Purchases of property and equipment

 

 

 —

 

 

(542)

Net cash used in investing activities

 

$

 —

 

 

(582)