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GOODWILL, TRADEMARKS AND INTANGIBLE ASSETS | 12 Months Ended
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Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL, TRADEMARKS AND INTANGIBLE ASSETS | GOODWILL, TRADEMARKS AND INTANGIBLE ASSETS Goodwill and Trademarks Goodwill and trademarks are not amortized, but are subject to impairment analysis. We assess the potential impairment of goodwill and trademarks annually (at the end of our fourth quarter) and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If we determine through the impairment review process that goodwill or trademarks are impaired, we record an impairment charge in our consolidated statements of operations. In performing its goodwill impairment test as of September 30, 2023, the Company determined that a triggering event had occurred. Due to the volatility of the Company's stock price in the fourth quarter of fiscal 2023, the upcoming expiration of the current Bryant Park Grill & Cafe and The Porch at Bryant Park leases on April 30, 2025 and the related requests for proposals from the landlord for both locations received in July 2023 and September 2023, respectively (see Note 11 - Commitments and Contingencies to the Consolidated Financial Statements), the Company determined that there were indicators of potential impairment of its goodwill as of September 30, 2023. As such, the Company performed a qualitative and quantitative assessment for its goodwill. The fair value of the equity was determined using the income approach. Given the relatively low volume of shares traded and the lack of reliable market data as of September 30, 2023, the Company determined the income approach provided the best approximation of fair value. In the income approach, we utilized a discounted cash flow analysis, which involved estimating the expected future after-tax cash flows generated and then discounting those cash flows to present value, reflecting the relevant risks associated with the achievement of projected cash flows, the possibility that the Bryant Park Grill & Cafe and The Porch at Bryant Park leases may not be renewed beyond their expirations on April 30, 2025 (see Note 11 - Commitments and Contingencies), and the time value of money. This approach requires the use of significant estimates and assumptions, including forecasted revenue growth rates, forecasted cash flows from operations, and discount rates that reflect the risk inherent in the future cash flows. Based on the impairment analysis, the carrying amount of our equity exceeded its estimated fair value, which indicated an impairment of the carrying value of our goodwill. Accordingly, during the fourth quarter of fiscal 2023, the Company recorded a goodwill impairment charge of $10,000,000, of which $8,000,000 was deductible for tax purposes and resulted in a deferred income tax benefit of $2,300,000. Such impairment has been attributed to factors such as, but not limited to, a decrease in the market price of the Company's common stock and lower than expected profitability in the fourth quarter of fiscal 2023. The changes in the carrying amount of goodwill and trademarks for the years ended September 30, 2023 and October 1, 2022 are as follows:
| Goodwill |  | Trademarks
| (in thousands)
Balance as of October 2, 2021 | $ | 17,440 |  |  | $ | 4,220 |
Acquired during the year | — |  |  | — |
Balance as of October 1, 2022 | 17,440 |  |  | 4,220 |
Acquired during the year | — |  |  | — |
Impairment charge (1) | (10,000) |  |  | — |
Balance as of September 30, 2023 | $ | 7,440 |  |  | $ | 4,220 |
(1) Accumulated impairment losses as of September 30, 2023 and October 1, 2022 were $10,000,000 and $0, respectively. Intangibles Intangible assets consist of the following:
| September 30, 2023 |  | October 1, 2022
| (in thousands)
Purchased leasehold rights (a) - fully amortized | $ | 1,995 |  |  | $ | 1,995 |
Noncompete agreements and other - 5-10 years | 633 |  |  | 633 |
| 2,628 |  |  | 2,628 |
Less accumulated amortization | 2,441 |  |  | 2,356 |
Intangible Assets - Net | $ | 187 |  |  | $ | 272 |
(a)Purchased leasehold rights arose from acquiring leases and subleases of various restaurants. Amortization expense related to intangible assets for the years ended September 30, 2023 and October 1, 2022 was $85,000 and $104,000, respectively. Amortization expense is expected to be $85,000 for fiscal 2024 and 2025 and $17,000 for fiscal 2026.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
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