(10) Restaurant Acquisition

On August 6, 2018, the Company completed the acquisition of a Famous Dave's restaurant in Janesville, Wisconsin. The seller of the restaurant was Team R N' B Wisconsin, LLC. The contract purchase price of the restaurant was approximately $37,000, exclusive of closing costs plus the assumption of the gift card liability.

The acquisition was accounted for using the purchase method of accounting in accordance with ASC 805 “Business Combinations” and, accordingly, the consolidated statements of operations include the results of these operations from the date of acquisition. The assets acquired and the liabilities assumed were recorded at estimated fair values based on information available.

The following table presents the allocation of assets acquired and liabilities assumed during the nine months ended September 30, 2018:


(in thousands)
Cash and cash equivalents	$	2
Inventory		35
Property, plant and equipment		40
Goodwill		6
Total assets acquired		83
Gift card liability assumed		(46)
Total cash paid for acquisition	$	37

Unaudited pro forma results of operations for the three and nine month periods ended September 30, 2018 and October 1, 2017, as if the Company had acquired majority ownership of all operations acquired during 2017 and 2018 on January 2, 2017 is as follows. The pro forma results include estimates and assumptions which management believes are reasonable. However, pro forma results are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the dates indicated, or which may result in the future.


	Three Months Ended				Nine Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
(in thousands)
Pro forma revenues	$	14,235	$	16,503	$	42,480	$	53,373
Pro forma net income (loss) from continuing operations	$	1,415	$	(1,890)	$	3,821	$	(4,952)
Basic pro forma net income (loss) from continuing operations per share	$	0.16	$	(0.27)	$	0.45	$	(0.71)
Diluted pro forma net income (loss) from continuing operations per share	$	0.16	$	(0.27)	$	0.45	$	(0.71)