Discontinued Operations

3 Months Ended

Dec. 31, 2011

Discontinued Operations

Note 3.           Discontinued Operations

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.

Discontinued operations losses of $11,000 and $4,000 for the three month periods ended December 31, 2011 and December 31, 2010, respectively, are from results of operations and lease obligations. With respect to the Commerce City closed location, we have continuing aggregate lease obligations of $647,000 and we have subleased the location for $528,000 in aggregate sublease income. We have recorded an estimated discounted liability of $93,000 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.