DISCONTINUED OPERATIONS

12 Months Ended

Sep. 30, 2011

DISCONTINUED OPERATIONS

3.             DISCONTINUED OPERATIONS

Discontinued operations are presented in accordance with FASB ASC 205-20, Presentation of Financial Statements. During fiscal 2010 we closed two locations: one dual-branded restaurant in Commerce City, Colorado in March 2010 and one co-developed restaurant in Denver, Colorado in June 2010. Fixed assets and associated accumulated depreciation of $406,000 related to the Commerce City location are included in the property and equipment of our condensed consolidated balance sheet. Current and long-term liabilities related to discontinued operations relate to the future estimated lease obligations of the Commerce City location.

Following is a summary of the costs from discontinued operations for the current and prior year periods:

	Twelve Months Ended
	September 30,
	2011	2010
Results of operations	( $5,000 )	( $153,000 )
Future lease obligations, fair value	( 4,000 )	( 143,000 )
Asset impairment credits (charges) and other costs	31,000	( 294,000 )
Income (loss) from discontinued operations	$22,000	($590,000 )

With respect to the Commerce City closed location, we have continuing aggregate lease obligations of $670,000 and we have subleased the location for $546,000 in aggregate sublease income. We have recorded an estimated discounted liability of $96,000 related to this location. We terminated the lease on the Denver location effective February 1, 2011 and no longer remain liable for any future lease obligations. In the three month period ended March 31, 2011 we reversed the $31,000 accrued lease liability associated with the Denver location.