Note 7 – Investments in Bagatelle NY

As of June 30, 2020 and December 31, 2019, the Company owned interests in the following companies, which directly or indirectly operate a restaurant:

Bagatelle Investors is a holding company that has an interest in Bagatelle NY. The Company records its retained interests in Bagatelle Investors and Bagatelle NY as investments as the Company has determined that it does not have the ability to exercise significant influence over its investees, Bagatelle Investors and Bagatelle NY. As of June 30, 2020 and December 31, 2019, the Company has zero carrying value in these investments.    

Additionally, the Company has a management agreement with Bagatelle NY. Under this agreement, the Company did not record management fee revenue for the three months ended June 30, 2020 and recorded less than $0.1 million of management fee revenue in the six months ended June 30, 2020. The Company recorded $0.2 million of management fee revenue in the three months ended June 30, 2019, and $0.3 million for the six months ended June 30, 2019. The Company also receives rental income from Bagatelle NY for restaurant space that it subleases to Bagatelle NY. Rental income of approximately $0.2 million was recorded from this entity for each of the three months ended June 30, 2020 and 2019, respectively, and $0.3 million was recorded from this entity for each of the six months ended June 30, 2020 and 2019, respectively. Net receivables from Bagatelle Investors and Bagatelle NY included in due from related parties were approximately $0.4 million and $0.3 million as of June 30, 2020 and December 31, 2019, respectively.