SUBSEQUENT EVENTS

12 Months Ended

Oct. 03, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On November 11, 2020, the landlord of the Company’s corporate office agreed to amend the related lease which was to expire on December 31, 2026. Effective January 1, 2021, rents will be reduced by approximately $20,000 a month for three years at which point an independent broker will determine the fair market value of the space. As part of the agreement, the Company agreed to spend approximately $200,000 on improvements to the HVAC systems and other pandemic related changes to the space. Also included in the amendment are two additional five-year options for the space.

On November 13, 2020, the Company was advised by the landlord that it would have to vacate Gallagher’s Steakhouse and Gallagher’s Burger Bar at the Resorts Casino Hotel located in Atlantic City, NJ. which were on a month-to-month, no rent lease. The Company expects that the closure of this property will occur on January 4, 2021 and will not result in a material charge to the Company’s operations.

On November 19, 2020, options to purchase 110,750 shares of common stock at an exercise price of $10.65 per share were granted to employees and directors of the Company. Such options are exercisable as to 50% of the shares commencing on

the second anniversary of the date of grant and the remaining 50% becoming exercisable on the fourth anniversary of the date of grant. The grant date fair value of these stock options was $2.22 per share.

On December 11, 2020, BHBM extended the maturity date of the Revolving Facility to October 3, 2021. In addition, BHBM extended the maturity dates of two working capital advances in the amounts of $3,000,000 and $3,300,000 from March 9, 2021 and June 8, 2021, respectively, to July 31, 2021. These amounts are expected to be converted to term loans when due, along with the balance of the Revolving Facility of $3,366,000 when due.

On December 11, 2020, New York State Governor Andrew Cuomo announced the shutdown of indoor dining in New York City indefinitely starting on Monday, December 14, 2020. We expect this will have a material adverse impact on our operations in New York, as will a shutdown of the entire City of New York, which is being considered by the Mayor of New York City as well as shut downs in any other cities where we operate.