RECENT RESTAURANT EXPANSION

3 Months Ended

Dec. 27, 2014

Recent Restaurant Expansion [Abstract]

Recent Restaurant Expansion [Text Block]

3. RECENT RESTAURANT EXPANSION

On February 24, 2014, the Company, through a wholly-owned subsidiary, Ark Rustic Inn LLC, completed its acquisition of the assets of The Rustic Inn Crab House (“The Rustic Inn”), a restaurant and bar located in Dania Beach, Florida, for a total purchase price of approximately $7,710,000. The acquisition is accounted for as a business combination and was financed with a bank loan in the amount of $6,000,000 and cash from operations. The fair values of the assets acquired were allocated as follows:

Inventory	$	210,000
Land		2,000,000
Building		2,800,000
Furniture, fixtures and equipment		200,000
Trademarks		500,000
Goodwill		2,000,000
	$	7,710,000

The Consolidated Condensed Statements of Income for the 13 weeks ended December 27, 2014 include revenues and earnings of approximately $3,192,000 and $436,000, respectively, related to The Rustic Inn. The Company expects the Goodwill and indefinite life Trademarks to be deductible for tax purposes.

The unaudited pro forma financial information set forth below is based upon the Company’s historical Consolidated Condensed Statements of Income for the 13 weeks ended December 28, 2013. The unaudited pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the acquisition of The Rustic Inn occurred on the dates indicated, nor does it purport to represent the results of operations for future periods.

Total revenues	$	35,124
Net income	$	597
Net income per share - basic	$	0.18
Net income per share - diluted	$	0.18

On July 18, 2014, the Company, through a wholly-owned subsidiary, Ark Jupiter RI, LLC, entered into an agreement with Crab House, Inc., and acquired certain assets and the related lease for a restaurant and bar located in Jupiter, Florida for approximately $250,000. In connection with this transaction, the Company entered into an amended lease for an initial period expiring through December 31, 2015. The Company has the option to extend the lease through 2033. Renovations to the property totaled approximately $750,000 and the restaurant opened the last week of January 2015.