Annual report pursuant to Section 13 and 15(d)

Segment reporting

v3.7.0.1
Segment reporting
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment reporting
Segment reporting:

The Company operates in three segments: owned STK units ("STKs"), food and beverage hospitality management agreements ("F&B") and Other concepts ("Other"). Each operating segment is individually reviewed and evaluated by our Chief Operating Decision Maker (CODM), who allocates resources and assesses performance of each segment individually. The Company’s Chief Executive Officer has been identified as the CODM. The CODM evaluates performance and allocates resources based upon a number of factors, the primary measure being profits (loss), which is defined as revenues less operating expenses, of each segment.

We believe STKs, F&B and Other to be our reportable segments as they do not have similar economic or other characteristics to be aggregated into a single reportable segment. Costs not allocated to the segments include depreciation, amortization, pre-opening expenses, transaction costs, lease termination expense, professional fees and other general and administrative expenses associated with executive and corporate functions including salaries, benefits, rent and insurance. Such costs are not included in the segment's profit or loss as they are not included in the measure reviewed by the CODM. Our STKs segment consists of leased restaurant locations and competes in the full service dining industry. Our F&B segment consists of management agreements in which the Company operates the food and beverage services in hotels or casinos and could include an STK, which we refer to as managed STK units. We refer to owned STK units and managed STK units together as “STK units.” These management agreements generate management and incentive fees on net revenue at each location. Our Other segment includes owned non-STK leased locations. Segment profit (loss) are revenues less owned operating expenses.


 
Years ended December 31,
 
2016
 
2015
Revenues:
 
 
 
STKs
$
63,248,936

 
$
52,213,149

F&B
8,465,584

 
7,921,584

Other
699,500

 
397,033

 
$
72,414,020

 
$
60,531,766

 
 
 
 
Segment Profits:
 
 
 
STKs (1)
$
6,294,742

 
$
5,313,615

F&B
8,465,584

 
7,921,584

Other
525,464

 
(203,061
)
 
 
 
 
Total segment profit
15,285,790

 
13,032,138

 
 
 
 
General and Administrative
11,172,764

 
10,711,002

Depreciation and amortization
2,647,333

 
2,191,450

Interest expense, net of interest income
464,165

 
30,380

Equity in income of investee companies
(674,289
)
 
(1,038,854
)
Other
7,669,684

 
3,350,952

 
 
 
 
Loss from continuing operations before provision (benefit) for income taxes
$
(5,993,867
)
 
$
(2,212,792
)
 
 
 
 
 
 
 
 
Capital assets, net
 
 
 
STKs
$
36,505,741

 
$
27,678,010

F&B
253,120

 
217,942

Other
56,378

 
56,375

Total
$
36,815,239

 
$
27,952,327



(1) For the year ended December 31, 2015 we determined that the carrying value of the net assets of our STK in Washington DC, exceeded its estimated future cash flows and a non-cash impairment charge of $2.8 million was recorded based on the difference between the carrying value of the restaurants assets and the estimated future value.