Note 4 - Accounts and Other Receivables

9 Months Ended

Feb. 28, 2017

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4.

Accounts and Other Receivables

Accounts and other receivables consist of the following (in thousands):

	February  28, 2017		May 31, 2016
Insurance receivable	$	5,000	$	–
Amounts due from franchisees		3,799		3,013
Amounts due from distributor		1,317		560
Third-party gift card sales		984		1,272
Rebates receivable		786		1,001
Receivables from sales of Lime Fresh Mexican Grill asset s		–		5,289
Other receivables		1,529		1,692
	$	13,415	$	12,827

The insurance receivable reflected in the table above represents the amount of an insurance recovery in connection with the settlement of a class action case.  See Notes

11

and

15

to the Condensed Consolidated Financial Statements for further information.

We negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of us and our franchise system. We receive various volume discounts and rebates based on purchases for our Company-owned restaurants from numerous suppliers.

Amounts due from franchisees consist of royalties, license and other miscellaneous fees, a portion of which represents current and recently-invoiced billings.

As of

February

28

,

2017

and

May

31,

2016,

other receivables consisted primarily of amounts due from online ordering, sales and other miscellaneous tax refunds, and other receivables.

Sale

s

of Lime Fresh Mexican Grill

Assets

On

May

31,

2016,

we entered into agreements with

two

separate buyers to sell various Lime Fresh assets.

Pursuant to the terms of an asset purchase agreement, we agreed to sell our

eight

remaining Company-owned Lime Fresh restaurants for

$6.0

million. Given that closing requirements were satisfied for only

six

of the

eight

restaurants, an amendment was agreed upon which allowed for the payment of

$5.0

million upon the transfer of the

six

restaurants and the holdback of

$1.0

million until such time that both of the remaining

two

restaurants had closed and transferred to the buyer. The

six

restaurants closed and were transferred to the buyer on

May

31,

2016.

During the

39

weeks ended

February

 

28,

2017,

the

two

remaining restaurants closed and were transferred to the buyer. As a result of this, we collected the

$1.0

million previously withheld.

The

$5.3

million of receivables from sales of Lime Fresh assets included in the table above as of

May

31,

2016

consists of

$5.0

million due from the buyer of the formerly Company-owned Lime Fresh restaurants, which was collected on the

first

day of fiscal year

2017,

and

$0.3

million due from the buyer of the Lime Fresh brand

.