ARK RESTAURANTS CORP

Previous wording

As of March 28, 2026, the Company owned and operated 16 restaurants and bars, 12 fast food concepts and catering operations, exclusively in the United States, that have similar economic characteristics, nature of products and services, class of customers and distribution methods. The Company believes it meets the criteria for aggregating its operating components into a single operating segment in accordance with applicable accounting guidance.

Current wording

As of June 27, 2026, the Company owned and operated 16 restaurants and bars, 12 fast food concepts and catering operations, exclusively in the United States. The Company’s operating components have been aggregated into one reportable segment. See Note 12 — Segment Information to the consolidated condensed financial statements.

Previous wording

Our fiscal year ends on the Saturday nearest September 30. We report fiscal years under a 52/53-week format. This reporting method is used by many companies in the hospitality industry and is meant to improve year-to-year comparisons of operating results. Under this method certain years will contain 53 weeks. The periods ended March 28, 2026 and March 29, 2025 each included 13 and 26 weeks.

Current wording

Our fiscal year ends on the Saturday nearest September 30. We report fiscal years under a 52/53-week format. This reporting method is used by many companies in the hospitality industry and is meant to improve year-to-year comparisons of operating results. Under this method certain years will contain 53 weeks. The periods ended June 27, 2026 and June 28, 2025 each included 13 and 39 weeks.

Previous wording

The Company has substantial fixed costs that do not decline proportionally with sales. Although our business is highly seasonal, our broader geographical reach mitigates some of this risk. For instance, the second quarter of our fiscal year, consisting of the non-holiday portion of the cold weather season in New York and Washington D.C. (January, February and March), is the poorest performing quarter; however, this is partially offset by our locations in Florida as they experience increased results in the winter months. We generally achieve our best results during the warmer weather, attributable to our extensive outdoor dining availability, particularly at Bryant Park Grilland the Bryant Park Caféin New York and Sequoiain Washington, D.C. (our largest restaurants) and our outdoor cafes. However, even during summer months these facilities can be adversely affected by unusually cool or rainy weather conditions. Our facilities in Las Vegas are indoors and generally operate on a more consistent basis throughout the year, although in recent years the summer months have seen lower traffic.

Current wording

The Company has substantial fixed costs that do not decline proportionally with sales. Although our business is highly seasonal, our broader geographical reach mitigates some of this risk. For instance, the second quarter of our fiscal year, consisting of the non-holiday portion of the cold weather season in New York and Washington D.C. (January, February and March), is the poorest performing quarter; however, this is partially offset by our locations in Florida as they experience increased results in the winter months. We generally achieve our best results during the warmer weather, attributable to our extensive outdoor dining availability, particularly at the Bryant Park Grill, the Bryant Park Café and The Porch at Bryant Park in New York and Sequoia in Washington, D.C (our largest restaurants) and our outdoor cafes. However, even during summer months these facilities can be adversely affected by unusually cool or rainy weather conditions. Our facilities in Las Vegas are indoors and generally operate on a more consistent basis throughout the year, although in recent years the summer months have seen lower traffic.

Previous wording

The Company’s lease agreements for the Bryant Park Grill, the Bryant Park Caféand The Porch at Bryant Park expired in April 2025 and March 2025, respectively. In response to requests for proposals issued by the landlord in 2023, the Company submitted bids for new long-term agreements. In the second quarter of 2025, the landlord publicly announced the selection of a new operator for both locations; however, as of the date of this filing, the required approvals from the City of New York Department of Parks & Recreation and the New York Public Library have not been obtained, and no new lease has become effective.

Current wording

The Company’s lease agreements for the Bryant Park Grill and the Bryant Park Café expired on April 30, 2025 and for The Porch at Bryant Park expired on March 31, 2025. In response to requests for proposals issued by the landlord in 2023, the Company submitted bids for new long-term agreements. In the second quarter of 2025, the landlord publicly announced the

Previous wording

Management is unable to predict the outcome of the litigation at this time. The Bryant Park Grill, the Bryant Park Caféand The Porch at Bryant Park represented a significant portion of the Company’s revenues, accounting for approximately 13.3% and 15.0% of total revenue for the 26 weeks ended March 28, 2026 and March 29, 2025, respectively. The ongoing uncertainty related to this dispute has had, and is expected to continue to have, a material adverse effect on the Company’s business, financial condition, and results of operations while the matter remains unresolved and if the Company is ultimately unable to retain these locations on favorable terms, or at all.

Current wording

Management, after consultation with legal counsel, is unable to predict the outcome of the appeal or related proceedings at this time. The Bryant Park Grill, the Bryant Park Café and The Porch at Bryant Park represented a significant portion of the Company’s revenues, collectively accounting for $17.1 million and $19.7 million, or approximately 14.5% and 15.4%, of total revenues for the 39 weeks ended June 27, 2026 and June 28, 2025, respectively. The uncertainty related to this dispute has had, and is expected to continue to have, a material adverse impact on our business, financial condition, and results of operations, and the loss of these operations upon expiration of the stay, or the Company’s inability to otherwise retain these locations on favorable terms, or at all, would have a material adverse impact on our business, financial condition, and results of operations.

Previous wording

Historically, the Company has made rent payments related to the Bryant Park Grilland the Bryant Park Café based on prior year sales as required in the relevant agreements. As a result of the decline in sales due to the above litigation, such payments were in excess of the contractual minimums and were recorded as prepaid rent as they were expected to be applied against future lease obligations or otherwise recovered. However, based on the status of ongoing legal proceedings, and in consultation with external legal counsel, management determined during the current period that the prepaid rent balance is not probable of recovery. As a result, during the 13 weeks ended March 28, 2026, the Company recorded a charge of $566,000 to write off the amount of prepaid rent, which is included in occupancy expenses in the accompanying consolidated condensed statements of operations.

Current wording

Historically, the Company has made rent payments related to the Bryant Park Grill and the Bryant Park Café based on prior year sales as required in the relevant agreements. As a result of the decline in sales due to the above litigation, such payments were in excess of the contractual minimums and were recorded as prepaid rent as they were expected to be applied against future lease obligations or otherwise recovered. Based on the status of the legal proceedings, and in consultation with external legal counsel, management determined that the prepaid rent balance is not probable of recovery, and during the 13 weeks ended March 28, 2026, the Company recorded a charge of $566,000 to write off the amount of prepaid rent, which is included in occupancy expenses in the accompanying consolidated condensed statements of operations. Were the Company to prevail on appeal, it is possible these amounts could be recovered.

Previous wording

NMR has been actively pursuing a full casino license (including slots and table games like blackjack and roulette) to supplement its existing horse racing and sports betting operations. In January 2026, the New Jersey Senate Government, Wagering, Tourism & Historic Preservation Committee proposed a constitutional amendment to allow the legislature to authorize casino gambling at both the Monmouth Park and Meadowlands Racetracks. Such amendment will require a three-fifths vote in both legislative chambers followed by a voter referendum in a general election before becoming law. To date, no vote on this amendment has been scheduled by the state legislature; however, the deadline for submission of proposed amendments to the State of New Jersey Constitution to be voted upon at the November 2026 general election is August 3, 2026. If this were to happen and the voting results were favorable, NMR could possibly open a temporary facility in early 2027 and a permanent one by 2028.

Current wording

NMR has been actively pursuing a full casino license (including slots and table games such as blackjack and roulette) to supplement its existing horse racing and sports betting operations. In January 2026, the New Jersey Senate Government, Wagering, Tourism & Historic Preservation Committee proposed a constitutional amendment to allow the legislature to authorize casino gambling at both the Monmouth Park and Meadowlands Racetracks. Such an amendment requires a three-fifths vote in both legislative chambers followed by a voter referendum in a general election before becoming law. No vote on this amendment had been taken by the state legislature as of the date of this filing, which is beyond the August 3, 2026 deadline for submission of proposed amendments to the State of New Jersey Constitution to be voted upon at the November 2026 general election. As a result, the proposed amendment will not appear on the ballot, and no voter referendum on casino gaming at the Meadowlands will occur in 2026. The proposed amendment, or a similar amendment, may be placed on the ballot at a future general election, which could occur as early as November 2027 or in a subsequent general election; however, no assurance can be given as to whether or when the state legislature will approve such an amendment or a voter referendum will be held. If a referendum were ultimately held and the voting results were favorable, NMR could possibly open a temporary gaming facility within approximately one year following voter approval and a permanent facility within approximately two years thereafter, subject to the issuance of a license by the New Jersey Casino Control Commission and completion of any required development.

Previous wording

The Company’s investment in NMR is subject to a high degree of uncertainty. Any potential future expansion of gaming operations at the Meadowlands, including the approval of casino gaming, would require legislative action, voter approval and regulatory approvals, none of which are within the Company’s control and none of which can be assured. The realization of any potential benefit from this investment is dependent on factors that are inherently uncertain and may not occur within a predictable timeframe, if at all. In addition, NMR may require significant additional capital in connection with any future development efforts, including funding for potential referendum-related activities. To the extent the Company does not participate in such funding, or if NMR raises capital from third parties, the Company’s ownership interest may be diluted.

Current wording

NMR may require significant additional capital in connection with any future development efforts, including funding for potential referendum-related activities. To the extent the Company does not participate in such funding, or if NMR raises capital from third parties, the Company’s ownership interest may be diluted.

Previous wording

The Company does not rely on NMR to fund its operations, meet its liquidity needs or drive its near-term financial performance.

Current wording

The Company evaluated its investment in NMR for impairment, including consideration that no voter referendum on casino gaming at the Meadowlands will occur in 2026, and concluded that its fair value exceeds the carrying value. Accordingly, the Company did not record any impairment during the 13 and 39 weeks ended June 27, 2026. If a referendum is ultimately held and the amendment is rejected by voters, or if the Company otherwise concludes that the approval of casino gaming at the Meadowlands is no longer reasonably possible, the value of the investment would be based solely on NMR’s existing horse racing and sports betting operations, which may not support the current carrying value of the investment, and the Company would expect to record an impairment charge at that time, which could be material. The Company will continue to monitor legislative and other developments concerning gaming at the Meadowlands and will continue to evaluate the investment for impairment each reporting period. The Company does not rely on NMR to fund its operations, meet its liquidity needs or drive its near-term financial performance.

Previous wording

The Company's operating loss for the 13 weeks ended March 28, 2026 (which includes a one-time, non-recurring prepaid rent write-off in the amount of $566,000 related to the Bryant Park Grilland the Bryant Park Café as discussed above) decreased 64.1% as compared to an operating loss in the same period of the prior year (which includes a loss on the closure of El Rio Grandein the amount of $140,000 and a goodwill impairment charge of $3,440,000). Excluding these items, the adjusted operating loss of $1,091,000 for the 13 weeks ended March 28, 2026 decreased 17.2% as compared to an adjusted operating loss of $1,317,000 for the 13 weeks ended March 29, 2025.

Current wording

The Company's operating loss of $141,000 for the 13 weeks ended June 27, 2026 decreased 95.9% as compared to an operating loss of $3,415,000 in the same period of the prior year (which includes a gain on the closure of El Rio Grande in the amount of $178,000 and impairment charges of $2,940,000 and $1,760,000 related to Sequoia's ROU and long-lived assets, respectively). Excluding these items, operating results declined by $1,248,000, from adjusted operating income of $1,107,000 for the 13 weeks ended June 28, 2025 to an adjusted operating loss of $141,000 for the 13 weeks ended June 27, 2026.

Previous wording

The Company reported an operating loss of $563,000 for the 26 weeks ended March 28, 2026 (which includes a one-time, non-recurring prepaid rent write-off in the amount of $566,000 related to the Bryant Park Grilland the Bryant Park Café as discussed above) as compared to operating income of $1,073,000 in the same period of the prior year (which includes a loss on the closure of El Rio Grande of $5,000, a gain on the termination of our Tampa Food Court lease of $5,235,000, and a goodwill impairment charge of $3,440,000), representing a period-over-period decrease of $1,636,000. Excluding these items, adjusted operating income of $3,000 for the 26 weeks ended March 28, 2026 as compared to an adjusted operating loss of $717,000 for the 26 weeks ended March 29, 2025, representing a period-over-period increase of $720,000.

Current wording

The Company's operating loss of $704,000 for the 39 weeks ended June 27, 2026 (which includes a one-time, non-recurring prepaid rent write-off in the amount of $566,000 related to the Bryant Park Grilland the Bryant Park Café as discussed above) decreased 69.9% as compared to an operating loss of $2,342,000 in the same period of the prior year (which includes: (i) a gain on the closure of El Rio Grande of $173,000, (ii) a gain on the termination of our Tampa Food Court lease of $5,235,000, (iii) impairment charges of $2,940,000 and $1,760,000 related to Sequoia's ROU and long-lived assets, respectively, and (iv) a

Previous wording

In addition to financial measures prepared in accordance with generally accepted accounting principles ("GAAP"), the above discussion includes adjusted operating income (loss), a non-GAAP financial measure that excludes certain items management believes are not reflective of the Company's ongoing operating performance. Management presents this measure because it believes it provides investors with a more meaningful comparison of the Company's core operating results across periods by excluding items that are non-recurring, infrequent, or otherwise not indicative of the Company's underlying business trends. Adjusted operating income (loss) should not be considered as an alternative to operating income (loss) or any other measure of

Current wording

In addition to financial measures prepared in accordance with generally accepted accounting principles ("GAAP"), the above discussion includes adjusted operating income (loss), a non-GAAP financial measure that excludes certain items management believes are not reflective of the Company's ongoing operating performance. Management presents this measure because it believes it provides investors with a more meaningful comparison of the Company's core operating results across periods by excluding items that are non-recurring, infrequent, or otherwise not indicative of the Company's underlying business trends. Adjusted operating income (loss) should not be considered as an alternative to operating income (loss) or any other measure of financial performance calculated in accordance with GAAP, and may not be comparable to similarly titled measures used by other companies. The table below reconciles GAAP operating income (loss) to adjusted operating income (loss) for each period presented.

Previous wording

(b)Represents the gain recognized during the 13 weeks ended March 29, 2025 as a result of refinements of estimates related to final lease negotiations with the El Rio Grande landlord, partially offset by operating losses incurred during the 26-week period prior to closure.

Current wording

(b)Represents the gain recognized during the 13 weeks ended June 28, 2025 as a result of refinements of estimates related to final lease negotiations with the El Rio Grande landlord, partially offset by operating losses prior to closure incurred during the 39-week period.

Previous wording

During the 13- and 26-week periods ended March 28, 2026, revenues decreased 7.9% and 8.7%, respectively, as compared to revenues for the 13- and 26-week periods ended March 29, 2025. We attribute this decrease primarily to the decreases in same-store sales discussed below and the closures of El Rio Grande and the Tampa Food Court.

Current wording

During the 13- and 39-week periods ended June 27, 2026, revenues decreased 6.5% and 8.0%, respectively, as compared to revenues for the 13- and 39-week periods ended June 28, 2025. We attribute these decreases primarily to the decreases in same-store sales discussed below and, in the 39-week periods, the closures of El Rio Grande and the Tampa Food Court.

Previous wording

On a Company-wide basis, same-store sales decreased 7.6% during the 13 weeks ended March 28, 2026 as compared to the same period of last year as follows:

Current wording

On a Company-wide basis, same-store sales decreased 6.6% during the 13 weeks ended June 27, 2026 as compared to the same period of last year as follows:

Previous wording

Same-store sales in Las Vegas decreased 6.5%, which we attribute primarily to lower revenues at our America property as a result of partial closure for renovations and lower visitor counts in Las Vegas. Same-store sales in New York decreased 14.1%, which we attribute primarily to decreases in both catering and a la carte revenue at the Bryant Park Grilland the Bryant Park Caféas a result of the negative publicity related to our dispute with the landlord. Same-store sales in Washington, D.C. decreased 4.6%,

Current wording

Same-store sales in Las Vegas decreased 11.4%, which we attribute primarily to lower revenues at our America property as a result of partial closure for renovations. Same-store sales in New York decreased 2.5%, which we attribute primarily to decreases

Previous wording

25 - which we attribute primarily to lower headcounts as a result of decreased customer traffic at the complex where we are located. Same-store sales in Atlantic City, NJ decreased 12.7%, which we attribute primarily to lower than expected customer traffic at the property where we are located. Same-store sales in Alabama decreased 1.1%, which we attribute primarily to lower customer traffic in the first quarter as a result of economic pressures on the customers who frequent our properties offset by better-than-expected customer traffic in the second quarter. Same-store sales in Florida decreased 6.4%, which we attribute primarily to lower headcounts from increased competition. Other food and beverage sales consist of sales related to properties that were closed.

Current wording

27 - in our a la carte revenue at the Bryant Park Grilland the Bryant Park Caféas a result of the negative publicity related to our dispute with the landlord. Same-store sales in Washington, D.C. increased 4.6%, which we attribute primarily to our event business. Same-store sales in Atlantic City, NJ increased 1.8%, which we attribute primarily to better than expected customer traffic at the property where we are located. Same-store sales in Alabama increased 1.5%, which we attribute primarily to better-than-expected customer traffic. Same-store sales in Florida decreased 10.2%, which we attribute primarily to lower headcounts from increased competition.

Previous wording

On a Company-wide basis, same-store sales decreased 7.5% during the 26 weeks ended March 28, 2026 as compared to the same period of last year as follows:

Current wording

On a Company-wide basis, same-store sales decreased 7.2% during the 39 weeks ended June 27, 2026 as compared to the same period of last year as follows:

Previous wording

Same-store sales in Las Vegas decreased 6.6%, which we attribute primarily to lower revenues at our America property as a result of partial closure for renovations. Same-store sales in New York decreased 12.3%, which we attribute primarily to decreases in both catering and a la carte revenue at the Bryant Park Grilland the Bryant Park Caféas a result of the negative publicity related to our dispute with the landlord combined with an unusually cold and snowy winter in the northeast. Same-store sales in Washington, D.C. decreased 18.7%, which we attribute primarily to lower headcounts as a result of decreased customer traffic at the complex where we are located. Same-store sales in Atlantic City, NJ decreased 10.8%, which we attribute primarily to lower than expected customer traffic at the property where we are located. Same-store sales in Alabama increased 2.1%, which we attribute primarily to better-than-expected customer traffic. Same-store sales in Florida decreased 8.3%, which we attribute primarily to lower headcounts from increased competition.

Current wording

Same-store sales in Las Vegas decreased 8.1%, which we attribute primarily to lower revenues at our America property as a result of partial closure for renovations and lower visitor counts in Las Vegas. Same-store sales in New York decreased 10.0%, which we attribute primarily to decreases in both catering and a la carte revenue at the Bryant Park Grilland the Bryant Park Caféas a result of the negative publicity related to our dispute with the landlord. Same-store sales in Washington, D.C. decreased 0.7%, which we attribute primarily to lower headcounts as a result of decreased customer traffic at the complex where we are located partially offset by a strong event business in the current quarter. Same-store sales in Atlantic City, NJ decreased 7.9%, which we attribute primarily to lower than expected customer traffic in the first two quarters at the property where we are located. Same-store sales in Alabama were essentially flat, with first quarter weakness offset by better-than-expected traffic in the second and third quarters. Same-store sales in Florida decreased 7.7%, which we attribute primarily to lower headcounts from increased competition. Other food and beverage sales consist of sales related primarily to properties that were closed.

Previous wording

Costs and expenses for the 13 and 26 weeks ended March 28, 2026 and March 29, 2025 were as follows (in thousands):

Current wording

Costs and expenses for the 13 and 39 weeks ended June 27, 2026 and June 28, 2025 were as follows (in thousands):

Previous wording

Food and beverage costs as a percentage of total revenues for the 13 and 26 weeks ended March 28, 2026 decreased as compared with the same period of last year as a result of targeted menu engineering.

Current wording

Food and beverage costs as a percentage of total revenues for the 13 and 39 weeks ended June 27, 2026 decreased as compared with the same period of last year as a result of targeted menu engineering.

Previous wording

Payroll expenses as a percentage of total revenues for the 13 weeks ended March 28, 2026 increased as compared with the same period of last year as a result of minimum wage increases. Payroll expenses as a percentage of total revenues for the 26 weeks ended March 28, 2026 decreased as compared with the same period of last year as a result of better shift management of related overtime hours and lower performance bonuses in the current year, partially offset by minimum wage increases.

Current wording

Payroll expenses as a percentage of total revenues for the 13 weeks ended June 27, 2026 increased as compared with the same period of last year as a result of lower revenues. Payroll expenses as a percentage of total revenues for the 39 weeks ended June 27, 2026 increased as compared with the same period of last year as a result of lower revenues, partially offset by better shift management of overtime hours and lower performance bonuses in the current year.

Previous wording

Occupancy expenses as a percentage of total revenues for the 13 weeks ended March 28, 2026 increased as compared with the same period of last year primarily as a result of one-time, non-recurring prepaid rent write-off in the amount of $566,000 related to the Bryant Park Grilland the Bryant Park Café as discussed above. Occupancy expenses as a percentage of total revenues for the 26 weeks ended March 28, 2026 increased as compared with the same period of last year primarily as a result of one-time, non-recurring prepaid rent write-off in the amount of $566,000 related to the Bryant Park Grilland the Bryant Park Café as discussed above partially offset by lower percentage rents as a result of the sales decreases discussed above.

Current wording

Occupancy expenses as a percentage of total revenues for the 13 weeks ended June 27, 2026 were consistent with the same period of last year. Occupancy expenses as a percentage of total revenues for the 39 weeks ended June 27, 2026 increased as compared with the same period of last year primarily as a result of one-time, non-recurring prepaid rent write-off in the amount of $566,000 related to the Bryant Park Grilland the Bryant Park Café as discussed above partially offset by lower percentage rents as a result of the sales decreases discussed above.

Previous wording

Other operating costs and expenses as a percentage of total revenues for the 13 and 26 weeks ended March 28, 2026 stayed relatively consistent compared to the same period of last year primarily as a result of implementing a credit card surcharge partially offset by higher costs as a result of inflation.

Current wording

Other operating costs and expenses as a percentage of total revenues for the 13 and 39 weeks ended June 27, 2026 increased as compared to the same period of last year primarily as a result of higher costs attributable to inflation partially offset by implementing a credit card surcharge.

Previous wording

General and administrative expenses (which relate solely to the corporate office in New York City and are relatively fixed) for the 13 and 26 weeks ended March 28, 2026 decreased as compared to the same periods of last year primarily as a result of lower commissions and bonus accruals and lower consulting fees related to the Bryant Park Grilland the Bryant Park Café litigation.

Current wording

General and administrative expenses (which relate solely to the corporate office in New York City and are relatively fixed) for the 13 and 39 weeks ended June 27, 2026 decreased as compared to the same periods of last year primarily as a result of lower commissions and bonus accruals and lower consulting fees related to the Bryant Park Grilland the Bryant Park Café litigation.

Previous wording

Depreciation and amortization expense for the 13 and 26 weeks ended March 28, 2026 decreased as compared to the same periods of last year primarily as a result of certain assets becoming fully depreciated and the removal of assets associated with the Tampa Food Court.

Current wording

Depreciation and amortization expense for the 13 and 39 weeks ended June 27, 2026 decreased as compared to the same periods of last year primarily as a result of certain assets becoming fully depreciated and the removal of assets associated with the Tampa Food Court.

Previous wording

Loss on Closure of El Rio Grande

Current wording

Gain on Closure of El Rio Grande

Previous wording

In October 2024, the Company advised the landlord of El Rio Grande we would be terminating the lease and closing the property permanently. In connection with this notification, the Company recorded a loss of $876,000 during the year ended September 28, 2024. The property closed permanently on January 3, 2025 and was vacated and delivered to the landlord on April 30, 2025. During the 13 weeks ended March 29, 2025, the Company recognized a gain of $140,000 as a result of refinements of estimates related to final negotiations with the landlord. During the 26 weeks ended March 29, 2025, the Company recognized a loss in the amount of $5,000 as a result of additional operating losses during the 13 weeks ended December 28, 2024 in the amount of $145,000 offset by the above refinements of estimates.

Current wording

In October 2024, the Company advised the landlord of El Rio Grande we would be terminating the lease and closing the property permanently. The property closed permanently on January 3, 2025 and was vacated and delivered to the landlord on April 30, 2025. During the 13 weeks ended June 28, 2025, the Company recognized a gain of $178,000 as a result of refinements of estimates. During the 39 weeks ended June 28, 2025, the Company recognized a gain in the amount of $173,000 as a result of additional operating losses offset by the above refinements of estimates.

Previous wording

During the three months ended March 29, 2025, the Company identified a triggering event in accordance with the Financial Accounting Standards Board (“FASB”), Accounting Standards Update ("ASU") 350-20, “Intangibles—Goodwill and Other,” primarily related to a decline in the Company's stock price in the second quarter of fiscal 2025 and the continued uncertainty related to the expiration of the Bryant Park Grill, the Bryant Park Caféand The Porch at Bryant Park leases (see Note 8 - Commitments and Contingencies). As a result, the Company performed an interim quantitative impairment test and based on the results of the assessment, the fair value of our equity was determined to be less than its carrying amount. Accordingly, the Company recognized a non-cash impairment charge of the remaining balance of its goodwill in the amount of $3,440,000 in our consolidated condensed statements of operations for the 13 and 26 weeks ended March 29, 2025. The Company did not record any impairment to its goodwill during the 13 and 26 weeks ended March 28, 2026.

Current wording

During the 13 weeks ended March 29, 2025, the Company identified a triggering event in accordance with the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification ("ASC") Topic 350, “Intangibles—Goodwill and Other,” primarily related to a decline in the Company's stock price in the second quarter of fiscal 2025 and the continued uncertainty related to the expiration of the Bryant Park Grill, the Bryant Park Caféand The Porch at Bryant Park leases (see Note 8 - Commitments and Contingencies). As a result, the Company performed an interim quantitative impairment test and based on the results of the assessment, the fair value of our equity was determined to be less than its carrying amount. Accordingly, the Company recognized a non-cash impairment charge of the remaining balance of its goodwill in the amount of $3,440,000 in our consolidated condensed statements of operations for the 13 and 26 weeks ended March 29, 2025. The Company did not record any impairment to its goodwill during the 13 and 39 weeks ended June 27, 2026.

Previous wording

As of March 28, 2026, we had cash and cash equivalents of $11,487,000, total debt of $7,553,000 (including $5,000,000 outstanding under our revolving credit facility) and a working capital deficit of $2,483,000 as compared with a working capital deficit of $5,377,000 at September 27, 2025. The Credit Agreement provides for maximum permitted obligations of $20,000,000, inclusive of all outstanding promissory notes. As of March 28, 2026, total obligations outstanding under the Credit Agreement were $7,553,000, comprised of $5,000,000 in revolving borrowings and $2,553,000 in outstanding term notes. Accordingly, as of March 28, 2026, we had approximately $12,400,000 of additional borrowing capacity available under the Credit Agreement, subject to continued compliance with the financial covenants thereunder.

Current wording

As of June 27, 2026, we had cash and cash equivalents of $9,492,000, total debt of $7,117,000 (excluding a $324,000 stand-by letter of credit in favor of the landlord for our corporate headquarters) and a working capital deficit of $4,411,000 as compared with a working capital deficit of $5,377,000 at September 27, 2025. The Credit Agreement provides for maximum permitted obligations of $20,000,000, inclusive of all outstanding promissory notes. As of June 27, 2026, total obligations outstanding under the Credit Agreement were $7,441,000, comprised of $5,000,000 in revolving borrowings, a $2,117,000 outstanding note and a $324,000 stand-by letter of credit. Accordingly, as of June 27, 2026, we had approximately $12,559,000 of additional borrowing capacity available under the Credit Agreement, subject to continued compliance with the financial covenants thereunder.

Previous wording

We expect additional capital expenditures for fiscal 2026 to be approximately $4,000,000, primarily related to required leasehold improvements, maintenance capital expenditures at existing locations, and completion of renovation commitments in Las Vegas. We anticipate funding these expenditures through a combination of cash on hand, including the recent borrowings under our revolving credit facility.

Current wording

We expect additional capital expenditures for fiscal 2026 to be approximately $1,000,000, primarily related to required leasehold improvements, maintenance capital expenditures at existing locations, and completion of renovation commitments in Las Vegas. We anticipate funding these expenditures through a combination of cash on hand, including the recent borrowings under our revolving credit facility.

Previous wording

Based on our current operating plan and financial projections, we believe that our existing cash and cash equivalents, together with availability under our revolving credit facility, will be sufficient to meet our working capital requirements, capital expenditures, and debt service obligations for at least the next twelve months; however, our liquidity could be adversely affected by, among other factors, the outcome of the Bryant Park Grilland the Bryant Park Caféand The Porch at Bryant Park lease dispute, compliance with financial covenants under our credit facility, and general economic conditions impacting our operating results.

Current wording

Other than the matters described above, including the status of the Bryant Park Grill, the Bryant Park Café and The Porch at Bryant Parkand the amendment to the Sequoia lease, we are not aware of any other trends or events that would materially affect our capital requirements or liquidity. Based on our current operating plan and financial projections, we believe that our existing cash balances, internal cash-generating capabilities and availability under our revolving credit facility are sufficient to finance our capital expenditures, debt maturities and other operating activities for at least the next twelve months, including under scenarios in which we are required to cease operations at the Bryant Park locations upon the expiration of the stay; however, in such scenarios we may rely more heavily on borrowings under our revolving credit facility, and our liquidity could be adversely affected by, among other factors, the timing and outcome of the appeal, compliance with the financial covenants under our Credit Agreement, and general economic conditions impacting our operating results.

Previous wording

Our profitability is dependent on, among other things, our ability to anticipate and react to changes in the cost of food and other raw materials, labor, energy and other supplies and services. While we have not had material disruptions in our supply chain, we have experienced some product shortages and higher costs for many commodities. There has also been a general shortage in the availability of restaurant staff and hourly workers in certain geographic areas in which we operate which has caused increases in the costs of recruiting and compensating such employees. In addition, certain operating and other costs, including health benefits, taxes, insurance, and other outside services, continue to increase with the general level of inflation and may also be subject to other cost and supply fluctuations outside of our control.

Current wording

Our profitability is dependent on, among other things, our ability to anticipate and react to changes in the cost of food and other raw materials, labor, energy and other supplies and services. While we have not had material disruptions in our supply chain, we have experienced some product shortages and higher costs for many commodities. There has also been a general shortage in the availability of restaurant staff and hourly workers in certain geographic areas in which we operate which has caused increases in the costs of recruiting and compensating such employees. In addition, certain operating and other costs, including health benefits,

Previous wording

Net cash used in operating activities increased by $783,000 period-over-period, from $734,000 for the 26 weeks ended March 29, 2025 to $1,517,000 for the 26 weeks ended March 28, 2026. This increase resulted primarily from two factors: (i) a $341,000 increase in accounts receivable balances, reflecting the timing of collections from hotel operators and credit card processors at period end, and (ii) a $1,120,000 decrease in customer advance deposits on catered events, reflecting lower forward bookings compared to the prior year period. These unfavorable changes were partially offset by reductions in payroll-related accruals and other operating expenses compared to the prior year period.

Current wording

Net cash used in operating activities for the 39 weeks ended June 27, 2026 was $872,000 as compared to net cash provided by operating activities of $1,119,000 in the same period as last year. This decrease resulted primarily from a decrease in adjusted operating income and an increase in accounts receivable balances, reflecting the timing of collections from hotel operators and credit card processors at period end.

Previous wording

Net cash used in investing activities for the 26 weeks ended March 28, 2026 was $1,980,000 as compared to net cash provided by investing activities of $4,626,000 in the same period as last year. This decrease resulted primarily from the payment received in connection with the termination of our Tampa Food Court lease in the prior period, partially offset by higher capital expenditures in connection with the renovation of our America property in Las Vegas.

Current wording

Net cash used in investing activities for the 39 weeks ended June 27, 2026 was $4,046,000 as compared to net cash provided by investing activities of $4,662,000 in the same period as last year. This decrease resulted primarily from the payment received in connection with the termination of our Tampa Food Court lease in the prior period as well as higher capital expenditures in connection with the renovation of our America property in Las Vegas.

Previous wording

Net cash provided by financing activities for the 26 weeks ended March 28, 2026 was $3,660,000 as compared to net cash used by financing activities of $3,041,000 in the same period as last year. This increase resulted primarily from a $5,000,000 borrowing under our revolving facility and the lower distribution payments to non-controlling interests in the current period.

Current wording

Net cash provided by financing activities for the 39 weeks ended June 27, 2026 was $3,086,000 as compared to net cash used in financing activities of $3,729,000 in the same period as last year. This increase resulted primarily from a $5,000,000 borrowing under our revolving facility and the lower distribution payments to non-controlling interests in the current period.

Previous wording

Borrowings and all other obligations under the Credit Agreement, which include the promissory notes as discussed in Note 7 of the consolidated condensed financial statements, are secured by all tangible and intangible personal property (including accounts receivable, inventory, equipment, general intangibles, documents, chattel paper, instruments, letter-of-credit rights, investment property, intellectual property and deposit accounts) and fixtures of the Company. The Credit Agreement also requires, among other things, that the Company meet minimum quarterly tangible net worth amounts and maintain a minimum fixed charge

Current wording

Borrowings and all other obligations under the Credit Agreement, which include the promissory notes as discussed in Note 7 of the consolidated condensed financial statements, are secured by all tangible and intangible personal property (including accounts receivable, inventory, equipment, general intangibles, documents, chattel paper, instruments, letter-of-credit rights, investment property, intellectual property and deposit accounts) and fixtures of the Company. The Credit Agreement also requires, among other things, that the Company meet minimum quarterly tangible net worth amounts and maintain a minimum fixed charge coverage ratio. The Credit Agreement contains customary representations, warranties and affirmative covenants as well as customary negative covenants, subject to negotiated exceptions on liens, relating to other indebtedness, capital expenditures, liens, affiliate transactions, disposal of assets and certain changes in ownership. The Company was in compliance with all of its financial covenants under the Credit Agreement as of June 27, 2026.