FLANIGANS ENTERPRISES INC MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS. (Kind 10-Okay)

Apart from the historic data contained herein, the next dialogue
comprises forward-looking statements which are topic to identified and unknown dangers,
uncertainties and different elements that will trigger our precise outcomes to vary
materially from these expressed or implied by such forward-looking statements.
We talk about such dangers, uncertainties and different elements all through this report
and particularly beneath the captions "Danger Components". As well as, the next
dialogue and evaluation must be learn at the side of the 2021 Consolidated
Monetary Statements and the associated Notes to Consolidated Monetary Statements
included elsewhere on this report.



PREVIEW

Monetary data regarding enterprise segments

Our enterprise is carried out in two segments: the restaurant phase and the
bundle liquor retailer phase. Monetary data damaged into these two
trade segments for the 2 fiscal years ended October 2, 2021 and October 3,
2020 is ready forth within the Consolidated Monetary Statements that are hooked up
hereto.



Basic


As of October 2, 2021, we (i) operated 27 items, consisting of eating places,
bundle liquor shops and mixture eating places/bundle liquor shops that we
both personal or have operational management over and partial possession in; and (ii)
franchises a further 5 items, consisting of two eating places (one among which
we function) and three mixture eating places/bundle liquor shops.



Franchised Models. In change for our offering administration and associated companies
to our franchisees and granting them the correct to make use of our service marks
"Flanigan's Seafood Bar and Grill" and "Huge Daddy's Liquors", our franchisees
(4 of that are franchised to family members of our Chairman of the
Board, officers and/or administrators), are required to (i) pay to us a royalty equal
to 1% of gross bundle liquor gross sales and three% of gross restaurant gross sales; and (ii)
make promoting expenditures equal to between 1.5% to three% of all product sales
primarily based upon our precise promoting prices allotted between shops, pro-rata,
primarily based upon product sales.



Affiliated Restricted Partnership Owned Models. We handle and management the operations
of the eight eating places owned by restricted partnerships, besides the Fort
Lauderdale, Florida restaurant which is managed and managed by a associated
franchisee. Accordingly, the outcomes of operations of all restricted partnership
owned eating places, besides the Fort Lauderdale, Florida restaurant are
consolidated with our outcomes of operations for accounting functions. The outcomes
of operations of the Fort Lauderdale, Florida restaurant are accounted for
by us
using the fairness methodology.



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RESULTS OF OPERATIONS



REVENUES (in hundreds):



                                                52 Weeks Ended                      53 Weeks Ended
                                                October 2, 2021                     October 3, 2020
                                             Quantity                              Quantity
                                         (In hundreds)       P.c        (In hundreds)       P.c
Restaurant meals gross sales                   $         84,466         62.75%     $         68,685          61.9%
Restaurant bar gross sales                              20,832         15.48%               15,967          14.4%
Bundle retailer gross sales                               29,304         21.77%               26,276          23.7%

Whole Gross sales                             $        134,602        100.00%     $        110,928        100.00%

Franchise associated revenues                         1,673                               1,260
Rental revenue                                        770                                 680
Different working revenue (Loss)                        262                                 109

Whole Income                           $        137,307                    $        112,977



Comparability of the years ended October 2, 2021 and October 3, 2020



Revenues. Whole income for our fiscal yr 2021 elevated $24,330,000 or 21.54%
to $137,307,000 from $112,977,000 for our fiscal yr 2020 due primarily to
elevated bundle liquor retailer and restaurant gross sales, elevated menu costs and
the comparatively extra hostile results of COVID-19 on our operations throughout our
fiscal yr 2020 as in contrast with our fiscal yr 2021 and however the
fifty third week in our fiscal yr 2020. Efficient December 6, 2020 after which
efficient April 11, 2021 we elevated menu costs for our meals choices to
goal a rise to our meals revenues of roughly 2.45% and 4.60%
yearly, respectively, to offset increased meals prices and better general bills
and efficient November 29, 2020 we elevated menu costs for our bar choices
to focus on a rise to our bar revenues of roughly 1.83% yearly,
(collectively the "Current Worth Will increase"). Prior to those will increase, we
beforehand raised menu costs within the third quarter of our fiscal yr 2019. We
count on that complete income for our fiscal yr 2022 will enhance attributable to
elevated visitors and the Current Worth Will increase. We count on that the brand new bundle
liquor retailer positioned at 7990 Davie Highway Extension, Hollywood, Florida) will open
for enterprise throughout our fiscal yr 2022 and we count on to generate income from
it. We don't anticipate that the restaurant positioned at 2505 N. College
Drive, Hollywood, Florida, which has been closed since October, 2018 attributable to a
fireplace (the"Hollywood restaurant") will open for enterprise throughout our fiscal yr
2022 and accordingly we don't count on to generate any income from it.



Restaurant Meals Gross sales.Restaurant income generated from the sale of meals,
together with non-alcoholic drinks, at eating places totaled $84,466,000 for our
fiscal yr 2021 as in comparison with $68,685,000 for our fiscal yr 2020. The
enhance in restaurant meals gross sales for our fiscal yr 2021 as in comparison with
restaurant meals gross sales throughout our fiscal yr 2020 is attributable to elevated
restaurant visitors, the Current Worth Will increase and the comparatively extra
hostile results of COVID-19 on our operations throughout our fiscal yr 2020 as
in contrast with our fiscal yr 2021 and however the fifty third week in
our fiscal yr 2020. Comparable weekly restaurant meals gross sales (for eating places,
aside from for closures attributable to COVID-19, open for all of our fiscal years 2021
and 2020, respectively, which consists of 9 eating places owned by us,
(excluding the Hollywood Restaurant) and eight eating places owned by affiliated
restricted partnerships) was $1,610,000 and $1,287,000 for our fiscal years 2021
and 2020, respectively, a rise of 25.10%. Comparable weekly restaurant meals
gross sales for Firm-owned eating places solely was $797,000 and $649,000 for our
fiscal years 2021 and 2020 respectively, a rise of twenty-two.80%. Comparable
weekly restaurant meals gross sales for affiliated restricted partnership owned
eating places solely was $813,000 and $638,000 for our fiscal years 2021 and 2020,
respectively, a rise of 27.43%. We count on that restaurant meals gross sales,
together with non-alcoholic drinks, for our fiscal yr 2022 will enhance attributable to
elevated restaurant visitors and the Current Worth Will increase.



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Restaurant Bar Gross sales.Restaurant income generated from the sale of alcoholic
drinks at eating places totaled $20,832,000 for our fiscal yr 2021 as
in comparison with $15,967,000 for our fiscal yr 2020. The rise in restaurant bar
gross sales throughout our fiscal yr 2021 as in comparison with restaurant bar gross sales throughout our
fiscal yr 2020 is primarily attributable to elevated restaurant visitors, the Current
Worth Will increase and the comparatively extra hostile results of COVID-19 on our
operations throughout our fiscal yr 2020 as in contrast with our fiscal yr 2021 and
however the fifty third week in our fiscal yr 2020. Comparable weekly
restaurant bar gross sales (for eating places, aside from for closures attributable to COVID-19,
open for all of our fiscal years 2021 and 2020, respectively, which consists of
9 eating places owned by us, (excluding the Hollywood Restaurant), and eight
eating places owned by affiliated restricted partnerships) was $401,000 and $301,000
for our fiscal years 2021 and 2020 respectively, a rise of 33.22%.
Comparable weekly restaurant bar gross sales for Firm owned eating places solely was
$172,000 and $135,000 for our fiscal years 2021 and 2021, respectively, an
enhance of 27.41%. Comparable weekly restaurant bar gross sales for affiliated
restricted partnership owned eating places solely was $229,000 and $166,000 for our
fiscal years 2021 and 2021, respectively, a rise of 37.95%. We count on that
restaurant bar gross sales, together with non-alcoholic drinks, for our fiscal yr
2022 will enhance attributable to elevated restaurant visitors and the Current Worth
Will increase.



Bundle Liquor Retailer Gross sales. Income generated from gross sales of liquor and associated
objects at bundle liquor shops totaled $29,304,000 for our fiscal yr 2021 as
in comparison with $26,276,000 for our fiscal yr 2020, a rise of $3,028,000.
This enhance was primarily attributable to elevated bundle liquor retailer visitors attributable to
what seems to be continued elevated demand for bundle liquor retailer merchandise
ensuing from COVID-19 and however the fifty third week in our fiscal
yr 2020. The weekly common of similar retailer bundle liquor retailer gross sales, which
contains 9 (9) Firm-owned bundle liquor shops, (excluding the bundle
liquor retailer which together with the Hollywood Restaurant was the topic
of a fireplace in October 2018 (Retailer #19), however together with our new bundle liquor
retailer positioned at 12776 S.W. 88th Avenue, Miami, Florida, which opened for
enterprise on October 10, 2019 (Retailer #45)), was $564,000 and $496,000 for our
fiscal years 2021 and 2020 respectively, a rise of 13.71%.



Working Prices and Bills. Working prices and bills, (consisting of value
of merchandise bought, payroll and associated prices, occupancy prices and promoting,
normal and administrative bills), for our fiscal yr 2021 elevated
$18,591,000 or 16.89% to $128,657,000 from $110,066,000 for our fiscal yr
2020. The rise was primarily attributable to payroll and an anticipated normal enhance
in meals prices, offset by actions taken by administration to cut back and/or management
prices. We anticipate that our working prices and bills will proceed to
enhance via our fiscal yr 2022 for a similar causes. Working prices and
bills decreased as a share of complete income to roughly 93.70% in
our fiscal yr 2021 from 97.42% in our fiscal yr 2020.



Gross revenue. Gross margin is calculated by subtracting value of products bought from gross sales.

Restaurant Meals and Bar Gross sales. Gross revenue for meals and bar gross sales for our
fiscal yr 2021 elevated to $69,324,000 from $56,134,000 for our fiscal yr
2020. Our gross revenue margin for restaurant meals and bar gross sales (calculated as
gross revenue mirrored as a share of restaurant meals and bar gross sales), was
65.84% for our fiscal yr 2021 and 66.31% for our fiscal yr 2020. Gross
revenue margin for restaurant meals and bar gross sales decreased throughout our fiscal yr
2021 when in comparison with our fiscal yr 2020 attributable to increased meals prices, offset
amongst different issues by the Current Worth Will increase.

Bundle Liquor Retailer Gross sales. Gross revenue for bundle retailer gross sales for our fiscal
yr 2021 decreased to $6,956,000 from $7,084,000 for our fiscal yr 2020. Our
gross revenue margin, (calculated as gross revenue mirrored as a share of
bundle liquor retailer gross sales), for bundle retailer gross sales was 23.74% for our fiscal
yr 2021 and 26.96% for our fiscal yr 2020. We anticipate that the gross
revenue margin for bundle liquor retailer merchandise will lower throughout our
fiscal yr 2022 attributable to increased prices and a discount in pricing of sure
bundle retailer merchandise to be extra aggressive.

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Payroll and Associated Prices. Payroll and associated prices for our fiscal yr 2021
elevated $8,066,000 or 22.79% to $43,465,000 from $35,399,000 for our fiscal
yr 2020. Payroll and associated prices for the fiscal yr 2021 have been increased due
primarily to elevated efficiency bonuses and better prices for workers such
as cooks. Payroll and associated prices as a share of complete income was 31.66%
for our fiscal yr 2021 and 31.33% of complete income for our fiscal yr 2020.

Occupancy Prices. Occupancy prices (consisting of share lease, frequent space
upkeep, repairs, actual property taxes, amortization of leasehold purchases
and lease expense related to working lease liabilities beneath ASC 842) for
our fiscal yr 2021 decreased $445,000 or 6.32% to $6,595,000 from $7,040,000
for our fiscal yr 2020. The lower in occupancy prices have been impacted by the
termination of lease for our mixture retail bundle liquor retailer and
restaurant positioned at 5450 N. State Highway 7, North Lauderdale, Florida (Retailer
#40), the true property and enhancements of which we bought on December 31,
2020 and the elimination of occupancy prices as a result of elimination of lease for
our restaurant location which we're creating positioned at 14301 West Dawn
Boulevard, Dawn, Florida (Retailer #85), the true property and enhancements of
which we bought on March 2, 2021. We anticipate that our occupancy prices will
enhance via our fiscal yr 2022 as a result of graduation of lease for our
retail bundle liquor retailer location in a shopping mall at 11225 Miramar
Parkway, #245, Miramar, Florida (Retailer #24) and our restaurant location in a
buying middle at 11225 Miramar Parkway, #250, Miramar, Florida (Retailer #25).



Promoting, Basic and Administrative Bills. Promoting, normal and
administrative bills (consisting of normal company bills, together with however
not restricted to promoting, insurance coverage, skilled prices, clerical and
administrative overhead) for our fiscal yr 2021 elevated $358,000 or 1.80% to
$20,275,000 from $19,917,000 for our fiscal yr 2020. Promoting, normal and
administrative bills decreased as a share of complete income in our fiscal
yr 2021 to 14.77% as in comparison with 17.63% for our fiscal yr 2020. We
anticipate that our promoting, normal and administrative bills as a share
of complete income will enhance via our fiscal yr 2022 due primarily to
will increase in bills throughout all classes.

Depreciation and Amortization. Depreciation and amortization expense for our
fiscal yr 2021, which is included in promoting, normal and administrative
bills, decreased $177,000 or 5.46% to $3,063,000 from $3,240,000 from our
fiscal yr 2020. As a share of complete income, depreciation and
amortization expense was 2.23% of income for our fiscal yr 2021 and a pair of.87% of
income for our fiscal yr 2020.

Curiosity Expense, Internet. Curiosity expense, web, for our fiscal yr 2021 elevated
$102,000 to $938,000 from $836,000 for our fiscal yr 2020. Curiosity expense,
web, elevated for our fiscal yr 2021 attributable to curiosity on our borrowing of
$2,200,000 throughout the second quarter of our fiscal yr 2021 from an unrelated
third celebration lender used to finance our buy of the true property and
enhancements positioned at 14301 West Dawn Boulevard, Dawn, Florida (Retailer
#85) (the "$2.2 Million Borrowing"), curiosity on our borrowing of $4,300,000
throughout the third quarter of our fiscal yr 2021 from an unrelated third celebration
lender to re-finance our mortgage mortgage of our property positioned at 13105 - 13205
Biscayne Boulevard, North Miami, Florida (the "$4.3 Million Borrowing"), and the
borrowing by six of our restricted partnerships of a further roughly
$3.35 million of 2nd PPP Loans throughout the second quarter of our fiscal yr
2021. Curiosity expense, web, will enhance for our fiscal yr 2022 attributable to (i)
the $2.2 Million Borrowing; (ii) the $4.3 Million Borrowing; and (iii) the
borrowing by sure of our restricted partnerships of a further $3.35 million
of 2nd PPP Loans throughout the second quarter of our fiscal yr 2021, if not
forgiven.



Revenue taxes. Revenue tax for our fiscal yr 2021 was an expense of $1,185,000, in comparison with a bonus of $60,000 for our 2020 fiscal yr.

Internet Revenue. Internet revenue for our fiscal yr 2021 elevated $14,581,000 or 667.63%
to $16,765,000 from $2,184,000 for our fiscal yr 2020 due primarily to the
forgiveness of debt of sure of the PPP Loans and elevated income at our
retail bundle liquor shops and eating places, offset by increased meals prices and
general bills. As a share of income, web revenue in our fiscal yr 2021
is 12.21%, as in comparison with 1.93% in our fiscal yr 2020.



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Internet Revenue Attributable to Stockholders. Internet revenue attributable to stockholders
for our fiscal yr 2021 elevated $10,674,000 or 961.62% to $11,784,000 from
$1,110,000 for our fiscal yr 2020 due primarily to the forgiveness of debt of
the PPP Loans and elevated income at our retail bundle liquor shops and
eating places, offset by increased meals prices and general bills. As a share
of income, web revenue attributable to stockholders for our fiscal yr 2021 is
8.58%, as in comparison with 0.98% for our fiscal yr 2020.



New Sponsored Eating places

As new eating places open, our revenue from operations might be adversely affected
attributable to our obligation to advance pre-opening prices, together with however not restricted to
pre-opening lease for the brand new places. Throughout our fiscal yr 2021, we had one
new restaurant location in Dawn, Florida within the growth stage. Through the
fourth quarter of our fiscal yr 2019, we entered leases for 2 areas
adjoining to one another, to accommodate a brand new "Flanigan's Seafood Bar and Grill" as
nicely as a "Huge Daddy's Wine and Liquors" in a shopping mall in Miramar,
Florida. Through the fourth quarter of our fiscal yr 2021, we acquired
notification from the owner that it had accomplished considerably all the
landlord's work beneath the lease agreements and was delivering possession of
the
leased premises to us.


Menu worth will increase and traits

Through the third quarter of our fiscal yr 2021, we elevated menu costs for
our meals choices (efficient April 11, 2021) to focus on a rise to our meals
revenues of roughly 4.60% yearly to offset increased meals prices and better
general bills.

Through the first quarter of our fiscal yr 2021, we elevated menu costs for
our bar choices (efficient November 29, 2020) to focus on a rise to our bar
revenues of roughly 1.83% yearly and we elevated menu costs for our
meals choices (efficient December 6, 2020) to focus on a rise to our meals
revenues of roughly 2.45% yearly to offset increased meals prices and better
general bills. Prior to those will increase, we beforehand raised menu costs in
the third quarter of our fiscal yr 2019.

COVID-19 has and can proceed to materially and adversely have an effect on our restaurant
enterprise for what could also be a chronic time frame. This harm and disruption
has resulted from occasions and elements that have been inconceivable for us to foretell and
are past our management. In consequence, COVID-19 has materially adversely affected
our outcomes of operations for our fiscal yr 2021 and can, in all chance,
influence our outcomes of operations, liquidity and/or monetary situation
all through our fiscal yr 2022. The extent to which our restaurant enterprise might
be adversely impacted and its impact on our operations, liquidity and/or
monetary situation can't be precisely predicted.

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CASH AND CAPITAL RESOURCES

We fund our operations via money from operations and borrowings from third
events. As of October 2, 2021, we had money of roughly $32,676,000, an
enhance of $2,754,000 from our money stability of $29,922,000 as of October 3,
2020. Through the third quarter of our fiscal yr 2021, we generated web
proceeds of $2.8 million from the re-finance of our mortgage mortgage encumbering
the true property and enhancements positioned at 13105 - 13205 Biscayne Boulevard,
North Miami, Florida the place our Flanigan's Seafood Bar and Grill restaurant and
Huge Daddy's Liquors retail bundle liquor retailer function (Retailer #20) with an
unrelated third-party lender, rising the principal quantity borrowed from $1.5
million to $4.3 million. Through the second quarter of our fiscal yr 2021, we
closed on the acquisition of the true property and enhancements positioned at 14301
West Dawn Boulevard, Dawn, Florida the place we're creating a "Flanigan's
Seafood Bar and Grill" restaurant (Retailer #85) for $4,800,000. We financed this
acquisition with a mortgage from an unrelated third-party lender within the principal
quantity of $2.2 million and paid money for the stability. Through the first quarter
of our fiscal yr 2021, we closed on the acquisition of the true property and
enhancements positioned at 5450 N. State Highway 7, North Lauderdale, Florida the place we
function a mixture "Flanigan's Seafood Bar and Grill" restaurant and "Huge
Daddy's Liquors" bundle liquor retailer (Retailer #40) and paid $1,200,000 money at
closing. Through the second quarter of our fiscal yr 2021, six of the entities
proudly owning restricted partnership shops (the "LP's") and the shop we handle however do
not personal (the "Managed Retailer") (collectively, the "Debtors"), utilized for and
acquired web quantities of roughly $3.98 million from the 2nd PPP Loans, of
which roughly: (i) $3.46 million was loaned to 6 of the LP's ; and (ii)
$0.52 million was loaned to the Managed Retailer. Through the first quarter of our
fiscal yr 2020, our wholly owned subsidiary, Flanigan's Calusa Heart, LLC,
re-financed its mortgage mortgage with an unrelated third celebration lender, rising
the principal quantity borrowed from $2.72 million to $7.21 million.

However the unfavorable results of COVID-19 on our operations, we consider
that our present money availability from our money readily available, constructive money circulation
from operations and borrowed funds might be ample to fund our operations and
deliberate capital expenditures for not less than the subsequent twelve months.

Any future dedication to pay money dividends might be at our Board's discretion
and can depend on our monetary situation, working outcomes, capital
necessities and such different elements as our Board deems related. There might be no
assurances that any future dividends might be paid.



CASH FLOW

The next desk is a abstract of our money flows for our fiscal years 2021 and 2020.

———Fiscal Years ——–

                                                                       2021                  2020
                                                                            (in hundreds)

Internet money and money equivalents from working actions $14,361 $8,785
Internet money utilized in investing actions

                                     (11,901 )             (3,271 )
Internet money offered by financing actions                                     294               10,736

Internet Enhance in Money and Money Equivalents                                   2,754               16,250

Money and Money Equivalents, Starting                                       29,922               13,672

Money and Money Equivalents, Ending                                $        
32,676       $       29,922




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Capital Expenditures



Along with utilizing money for our working bills, we use money to fund the
growth and building of latest eating places and to fund capitalized property
enhancements for our present eating places. Throughout our fiscal yr 2021, we
acquired property and gear of $13,255,000, (of which $58,000 was for the
buy of a motorized vehicle; $3,229,000 was for the acquisition of actual property;
$4,416,000 was for building in progress; $14,000 was deposits recorded in
different property; and $48,000 was deposits transferred to building in progress
as of October 3, 2020), which quantity included $464,000 for renovations to 2
(2) present restricted partnership restaurant and $440,000 for renovations to
5(5) Firm-owned eating places. Throughout our fiscal yr 2020, we acquired
property and gear of $2,766,000, (of which $379,000 was for building in
progress; $118,000 was deposits recorded in different property; and $10,000 was
deposits transferred to building in progress as of September 28, 2019),
which quantity included $278,000 for renovations to 2 (2) present restricted
partnership restaurant and $466,000 for renovations to 5 (5) Firm-owned
eating places. We anticipate the price of this refurbishment in our fiscal yr
2022 might be roughly $1,000,000, excluding building/renovations to
Retailer #19 (our mixture bundle liquor retailer and restaurant which is being
rebuilt attributable to damages brought on by a fireplace), Retailer #85 (our Dawn, Florida
restaurant location in growth), Retailer #24 (our Miramar, Florida bundle
retailer location in growth) and Retailer #25 (our Miramar, Florida restaurant
location in growth), which funds might be offered from operations, topic
to reimbursement of all or part of the price of building/renovations
via non-public choices for the restricted partnerships which is able to personal Retailer
#85
and Retailer #25.



Debt


As of October 2, 2021, we had long-term debt of $22,115,000, as in comparison with
$26,323,000 as of October 3, 2020. Our long-term debt decreased as of October 2,
2021 as in comparison with October 3, 2020 as a result of forgiveness of our PPP Mortgage and
the PPP Loans of our restricted partnerships, offset by (i) our re-financing of our
mortgage mortgage encumbering the true property and enhancements positioned at 13105 -
13205 Biscayne Boulevard, North Miami, Florida the place our Flanigan's Seafood Bar
and Grill restaurant and Huge Daddy's Liquors retail bundle liquor retailer function
(Retailer #20), rising the principal quantity borrowed from $1.5 million to $4.3
million; (ii) our buy of the true property and enhancements positioned at
14301 West Dawn Boulevard, Dawn, Florida the place we're creating a
"Flanigan's" restaurant (Retailer #85) for $4,800,000 with a mortgage within the principal
quantity of $2.2 million; (iii), the 2nd PPP Loans acquired by six of our restricted
partnerships within the approximate of $3,500,000; and $1,429,000 for financed
insurance coverage premiums, much less any funds made on account thereof. As of October 2,
2021, we're in compliance with the covenants of all loans with our lenders.



We repaid long run debt, together with auto loans, financed insurance coverage premiums and
mortgages within the quantity of $4,100,000 and $2,540,000 in our fiscal years 2021
and 2020, respectively.

(a) Mortgage on immovable property – Dawn, Florida



Through the first quarter of our fiscal yr 2021, we exercised the Choice to
Buy and throughout the second quarter of our fiscal yr 2021 we closed on the
acquisition of the true property positioned at 14301 W. Dawn Boulevard, Dawn,
Florida. We financed this acquisition with a mortgage from an unrelated third celebration
lender within the principal quantity of $2.2 million. The mortgage mortgage accrues
curiosity on the fastened annual price of three.65%, is amortized over fifteen (15)
years, and requires us to pay month-to-month funds of principal and curiosity within the
quantity of $15,900 with the complete principal stability and all accrued however unpaid
curiosity due in March, 2036.

(b) Mortgage on immovable property – North Miami, Florida

Through the third quarter of our fiscal yr 2021, we re-financed with an
unrelated third celebration lender, our mortgage mortgage encumbering the true property
and enhancements positioned at 13105 - 13205 Biscayne Boulevard, North Miami,
Florida the place our Flanigan's Seafood Bar and Grill restaurant and Huge Daddy's
Liquors retail bundle liquor retailer function (Retailer #20), rising the
principal quantity borrowed from $1.5 million to $4.3 million. We acquired the web
money proceeds from the refinancing transaction ($2.8 million) shortly after the
finish of the third quarter of our fiscal yr 2021. The re-financed mortgage mortgage
earns curiosity on the fastened annual price of three.63%, is amortized over fifteen (15)
years, requires us to pay month-to-month funds of principal and curiosity within the
quantity of $31,129 with the complete principal stability and all accrued curiosity due
in July 2036. We intend to make use of the surplus funds we acquired from the
re-financing of this mortgage mortgage for working capital functions.



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(c) Financed insurance coverage premiums



Throughout our fiscal yr 2021, we financed the premiums on the next property,
normal legal responsibility, extra legal responsibility and terrorist insurance policies, totaling
roughly $1.94 million, which property, normal legal responsibility, extra legal responsibility
and terrorist insurance coverage contains protection for our franchises which aren't
included in our consolidated monetary statements:



(i)    For the coverage yr starting December 30, 2020, our normal legal responsibility
insurance coverage, excluding restricted partnerships, is a one (1) yr coverage with our
insurance coverage carriers. The one (1) yr normal legal responsibility insurance coverage premium is
in
the quantity of $340,000;



(ii)     For the coverage yr starting December 30, 2020, our normal legal responsibility
insurance coverage for our restricted partnerships is a one (1) yr coverage with our
insurance coverage carriers. The one (1) yr normal legal responsibility insurance coverage premium is
in
the quantity of $426,000;


(iii) For the insurance coverage yr commencing December 30, 2020, our auto insurance coverage is a one (1) yr coverage. The one (1) yr automobile insurance coverage premium is an quantity of $93,000;



(iv)    For the coverage yr starting December 30, 2020, our property insurance coverage
is a one (1) yr coverage. The one (1) yr property insurance coverage premium is in
the
quantity of $627,000;



(v)    For the coverage yr starting December 30, 2020, our extra legal responsibility
insurance coverage is a one (1) yr coverage. The one (1) yr extra legal responsibility insurance coverage
premium is within the quantity of $443,000;



(vi)    For the coverage yr starting December 30, 2020, our terrorist insurance coverage
is a one (1) yr coverage. The one (1) yr terrorist insurance coverage premium is within the
quantity of $5,000; and


(vii) For the coverage yr commencing December 30, 2020, our gear breakdown insurance coverage is a one (1) yr coverage. The one (1) yr gear breakdown insurance coverage premium is within the quantity of $6,000.



Of the $1,940,000 annual premium quantities, which incorporates protection for our
franchises which aren't included in our consolidated monetary statements, we
financed $1,776,000 via an unaffiliated third celebration lender. The finance
settlement obligates us to repay the quantities financed along with curiosity at
the speed of two.45% each year, over 11 months, with month-to-month funds of principal
and curiosity of $164,000. The finance settlement is secured by a primary precedence
safety curiosity in all insurance coverage insurance policies, all unearned premium, return
premiums, dividend funds and loss funds thereof.



Through the third quarter of our fiscal yr 2021, we financed the premium of our
administrators and officers legal responsibility insurance coverage coverage for the one (1) yr interval
commencing April 15, 2021. The one (1) yr administrators and officers legal responsibility
insurance coverage coverage premium is within the quantity of $55,000. Of the $55,000 annual
premium quantity, we financed $50,000 via an unaffiliated third celebration lender.
The finance settlement obligates us to repay the quantity financed along with
curiosity on the price of 4.00% each year, over 11 months, with month-to-month funds
of principal and curiosity of $4,700. The finance settlement is secured by a primary
precedence safety curiosity in all insurance coverage insurance policies, all unearned premium,
return premiums, dividend funds and loss funds thereof.



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As of October 2, 2021, the combination principal stability owed from the financing
of our property and normal legal responsibility insurance coverage insurance policies, together with the
financing of our administrators and officers legal responsibility insurance coverage coverage, however
excluding protection for our franchises, (of roughly $113,000), that are
not included in our consolidated monetary statements is $408,000.



(d) Second Paycheck Safety Loans



Through the second quarter of our fiscal yr 2021, sure of the LPs, as nicely
because the Managed Retailer, utilized for and acquired 2ndPPP loans, within the mixture
principal quantity of roughly $3.98 million (the "2nd PPP Loans"), of which
roughly: (i) $3.46 million was loaned to 6 (6) of the LP's; and (iv)
$0.52 million was loaned to the Managed Retailer.

The 2nd PPP Loans, that are within the type of notes issued by every of the
Debtors, mature 5 (5) years from the date of funding (March 23, 2021) and
bear curiosity at a price of 1.00% each year, payable month-to-month commencing after the
U.S. Small Enterprise Administration makes a dedication of the forgiveness of
the 2nd PPP Loans. The notes could also be pay as you go by the relevant Borrower at any
time previous to maturity with no prepayment penalties. Proceeds from the PPP Loans
have been out there to the respective Borrower to fund designated bills,
together with sure payroll prices, group well being care advantages and different permitted
bills, together with lease and curiosity on mortgages and different debt obligations
incurred earlier than February 15, 2020. Below the phrases of the PPP, as much as the complete
quantity of principal and accrued curiosity could also be forgiven to the extent the
proceeds of the 2nd PPP Loans are used for qualifying bills as described in
the CARES Act and relevant implementing steering issued by the U.S. Small
Enterprise Administration beneath the PPP. Subsequent to the top of our fiscal yr
2021, we utilized for and acquired forgiveness of the complete principal quantity and
all accrued curiosity of the 2nd PPP Loans.



Building Contracts


a) Extension of 7990 Davie Highway, Hollywood, Florida (Retailer #19 – “Huge Daddy’s Wines and Liquors”)



Through the third quarter of our fiscal yr 2019, we entered into an settlement
with a 3rd celebration unaffiliated normal contractor for website work at this
location totaling $1,618,000, (i) to attach the true property the place this
restaurant operated (Retailer #19) to metropolis sewer and (ii) to assemble a brand new
constructing on the adjoining parcel of actual property for the operation of a bundle
liquor retailer. Throughout our fiscal years 2020 and 2021, we agreed to vary orders
to the settlement for added building companies rising the full
contract worth by $536,000 to $2,156,000, of which $1,092,000 of the full
quantity obligated has been paid via October 2, 2021 and a further
$335,000 has been paid subsequent to the top of our fiscal yr 2021.



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(b) 2505 N. College Drive, Hollywood, Florida (Retailer #19 – “Flanigan’s”)



Through the third quarter of our fiscal yr 2019, we entered into an settlement
with an unaffiliated third celebration architect for design and growth companies
totaling $77,000 for the re-build of our restaurant positioned at 2505 N.
College Drive, Hollywood, Florida (Retailer #19), which has been closed since
October 2, 2018 attributable to damages brought on by a fireplace, of which $62,000 has been paid.
Subsequent to the top of our fiscal yr 2021, we entered into an settlement with
a 3rd celebration unaffiliated normal contractor to re-build our restaurant at this
location totaling $2,515,000, of which none has been paid.



(c) 14301 W. Dawn Boulevard, Dawn, Florida (Retailer #85 - "Flanigan's")



Through the third quarter of our fiscal yr 2019, we additionally entered into an
settlement with an unaffiliated third celebration design group for design and
growth companies of our new location at 14301 W. Dawn Boulevard, Dawn,
Florida 33323 (Retailer #85) for a complete contract worth of $122,000. Throughout our
fiscal yr 2020, we agreed upon amendments to the $122,000 Contract for
further design and growth companies which had the impact of accelerating
the full contract worth by $18,000 to $140,000, of which $131,000 has been paid
via October 2, 2021. Moreover, throughout the fourth quarter of our fiscal
yr 2020, we entered into an settlement with a 3rd celebration unaffiliated normal
contractor for inside renovations at this location totaling $1,236,000 and
throughout our fiscal yr 2021 we agreed to vary orders to the settlement for
further inside renovations rising the full contract worth by $197,000
to $1,433,000, of which $1,081,000 has been paid via October 2, 2021 and an
further $187,000 has been paid subsequent to the top of our fiscal yr 2021.



(D) 11225 Miramar Drive, #250, Miramar, Florida (“Flanigan’s”)

Through the fourth quarter of our fiscal yr 2019, we entered right into a Lease
Settlement with a non-affiliated third celebration, (the "Landlord") to lease
roughly 6,000 sq. ft of economic area for a restaurant location in
a shopping mall at 11225 Miramar Parkway, #250, Miramar, Florida (Retailer #25),
which buying middle was beneath building. Through the second quarter of our
fiscal yr 2021, we entered into an Architectural Skilled Providers
Settlement with a third-party unaffiliated architect for design and growth
companies for this, new location (Retailer #25) for a complete contract worth of
$73,850, which contract worth has been paid in full via October 2, 2021.
Through the fourth quarter of our fiscal yr 2021, we acquired notification from
the Landlord that it had accomplished considerably all the Landlord's work
beneath the Lease Settlement and was delivering possession of the leased premises
to us. Subsequent to the top of our fiscal yr 2021, we entered into an
settlement with a 3rd celebration unaffiliated normal contractor for inside
renovations at this location totaling $1,421,000, of which none has been paid.



(e) 11225 Miramar Drive, #245, Miramar, Florida (“Huge Daddy’s Wine and Liquors”)

Through the fourth quarter of our fiscal yr 2019, we entered right into a Lease
Settlement with a non-affiliated third celebration, (the "Landlord") to lease
roughly 2,000 sq. ft of economic area for a retail bundle liquor
retailer location in a shopping mall at 11225 Miramar Parkway, #245, Miramar,
Florida (Retailer #24), which buying middle was beneath building. Through the
second quarter of our fiscal yr 2021, we entered into an Architectural
Skilled Providers Settlement with a third-party unaffiliated architect for
design and growth companies for this, new location (Retailer #24) for a complete
contract worth of $18,650, which contract worth has been paid in full via
October 2, 2021. Through the fourth quarter of our fiscal yr 2021, we acquired
notification from the Landlord that it had accomplished considerably all the
Landlord's work beneath the Lease Settlement and was delivering possession of the
leased premises to us. Subsequent to the top of our fiscal yr 2021, we entered
into an settlement with a 3rd celebration unaffiliated normal contractor for
inside renovations at this location totaling $317,000, of which none has
been
paid.



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Buy Commitments/Provide



In an effort to repair the associated fee and guarantee satisfactory provide of child again ribs for our
eating places, on November 9, 2020, we entered into a purchase order settlement with our
present rib provider, whereby we agreed to buy roughly $6,420,000 of
child again ribs throughout calendar yr 2021 from this vendor at a hard and fast value.
Through the third quarter of our fiscal yr 2021, we agreed to extend the
fastened value of the remaining child again ribs for our calendar yr 2021 by
roughly $408,000 to make sure satisfactory provide for our eating places throughout
calendar yr 2022.



In an effort to guarantee satisfactory provide of child again ribs for our eating places for
calendar yr 2022, on October 4, 2021, we entered into a purchase order settlement
with our present rib provider, whereby we agreed to buy roughly
$10,414,000 of child again ribs throughout calendar yr 2022 from this vendor at
market value. Our buy settlement gives for the acquisition of two.25 & Down
Child Again Ribs, at a month-to-month value of the common market worth per pound of
the
prior 4 weeks.


Though we plan to supply all of our rib provide from this provider, we consider there are a number of different various suppliers out there, if required.


Flanigan's Fish Firm, LLC



As of October 2, 2021, Flanigan's Fish Firm, LLC, a Florida restricted legal responsibility
firm ("FFC") provides sure of the fish to all of our eating places. Since we
maintain the controlling curiosity of FFC, the stability sheet and working outcomes of
this entity are consolidated into the accompanying monetary statements of the
Firm. Gross sales and purchases of fish are acknowledged in restaurant meals gross sales and
restaurant and lounges (value of merchandise bought), respectively, within the
consolidated statements of revenue on the time of sale to the restaurant. In
addition, the 49% of FFC owned by the unrelated third celebration is acknowledged as
noncontrolling curiosity in our consolidated monetary statements.



Buy of restricted partnership pursuits

Throughout our 2020 and 2021 fiscal years, we didn’t buy any restricted partnership pursuits.


Working Capital


The desk under summarizes present property, present liabilities and dealing capital on the finish of our 2021 and 2020 fiscal years.



Merchandise                   Oct. 2, 2021       Oct. 3, 2020
                               (in Hundreds)

Present Belongings        $       39,790     $       36,508
Present Liabilities           20,223             25,362
Working Capital       $       19,567     $       11,146




Our working capital elevated as of October 2, 2021 from our working capital as
of October 3, 2020 attributable to (i) our receipt of $3.46 million from the 2nd PPP
Loans and (ii) our receipt of $2.8 million from our re-financing of our mortgage
mortgage encumbering the true property and enhancements positioned at 13105 - 13205
Biscayne Boulevard, North Miami, Florida the place our Flanigan's Seafood Bar and
Grill restaurant and Huge Daddy's Liquors retail bundle liquor retailer function
(Retailer #20), rising the principal quantity borrowed from $1.5 million to
$4.3
million.

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Whereas there might be no assurance attributable to, amongst different issues, unanticipated
bills or unanticipated decline in revenues, or each, we consider that our money
readily available, money circulation from operations and funds out there from our borrowings will
adequately fund operations, debt reductions and deliberate capital expenditures
all through our fiscal yr 2022.



Throughout our fiscal yr 2022, we plan to make use of sure funds on-hand, borrowed
funds and/or insurance coverage proceeds (i) to assemble a brand new constructing on the true
property we personal positioned at 7990 Davie Highway Extension, Hollywood, Florida, (Retailer
#19 bundle), to develop the "Huge Daddy's Wine & Liquors" retail bundle liquor
retailer location; (ii) to assemble a brand new constructing on the true property we personal
positioned at 2505 N. College Drive, Hollywood, Florida (Retailer #19 restaurant)
the place we plan to re-build our "Flanigan's" restaurant; (iii) advance the price of
renovations to develop the "Flanigan's" restaurant which we're at the moment
creating at 14301 West Dawn Boulevard, Dawn, Florida (Retailer #85); (iv)
advance the price of renovations to develop the "Flanigan's" restaurant which we
are at the moment creating at 12215 Miramar Parkway, #250, Miramar, Florida (Retailer
#25); and (v) advance the price of renovations to develop the "Huge Daddy's Wine &
Liquors" which we're at the moment creating at 12215 Miramar Parkway, #245,
Miramar, Florida (Retailer #24). There might be no assurances as to the timing for us
to assemble the brand new constructing for the bundle liquor retailer and re-build the
restaurant for Retailer #19 or to finish the renovations for the retail bundle
liquor retailer for our Retailer #24 or to finish the renovations for the
eating places for Retailer #25 and Retailer #85.



Off-balance sheet preparations

We’ve no off-balance sheet preparations.

Not too long ago Adopted and Not too long ago Issued Accounting Pronouncements


Not too long ago Adopted


Efficient September 29, 2019, we adopted Accounting Requirements Codification 842,
Leases ("ASC 842"). The brand new steering requires that lease preparations be
offered on the lessee's stability sheet by recording a right-of-use asset and a
lease legal responsibility equal to the current worth of the associated future minimal lease
funds. We adopted the usual within the first quarter of fiscal 2020, utilizing the
modified retrospective method.



We elected the transition bundle of sensible expedients, beneath which we're
not required to reassess (1) whether or not any expired or present contracts are
leases, or comprise leases, (2) the lease classification for any expired or
present leases, and (3) preliminary direct prices for any present leases. In
addition, we made an accounting coverage election to exclude leases with an
preliminary time period of twelve (12) months or much less from the stability sheet. This customary
had a fabric influence on the Consolidated Steadiness Sheets as a result of recording of
a right-of-use asset and lease legal responsibility and on the Consolidated Statements of
Revenue as a result of escalations of lease within the extensions however didn't have a
materials influence on the Consolidated Assertion of Money Flows.



Issued


There are not any lately issued accounting pronouncements that we’ve got not but adopted that we consider could have a fabric impact on our monetary statements.

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Important Accounting Insurance policies



Our vital accounting insurance policies are extra totally described in Notice 1 to our
consolidated monetary statements positioned in Merchandise 8 of this Annual Report on
Kind 10-Okay. The preparation of economic statements in conformity with accounting
ideas usually accepted in the US of America requires
administration to make estimates and assumptions that have an effect on the reported quantities of
property, liabilities, revenues, and bills, and the associated disclosures of
contingent property and liabilities. Precise outcomes might differ from these
estimates beneath totally different assumptions or circumstances. We consider that the
following vital accounting insurance policies are topic to estimates and judgments
used within the preparation of our consolidated monetary statements:



Estimated helpful life of products and gear



The estimates of helpful lives for property and gear are vital
estimates. Expenditures for the leasehold enhancements and gear when a
restaurant is first constructed are materials. As well as, periodic refurbishing
takes place and people expenditures might be materials. We estimate the helpful life
of these property by contemplating, amongst different issues, anticipated use, lifetime of the
lease on the constructing, and guarantee interval, if relevant. The property are then
depreciated utilizing a straight line methodology over these estimated lives. These
estimated lives are reviewed periodically and adjusted if crucial. Any
crucial adjustment to depreciation expense is made within the revenue assertion of
the interval through which the adjustment is set to be crucial.



Consolidation of restricted partnerships

As of October 2, 2021, we function eight (8) eating places as normal accomplice of
the restricted partnerships that personal the operations of those eating places. We count on
that any growth which takes place in opening new eating places can even consequence
in us working the eating places as normal accomplice. Along with the final
partnership curiosity we additionally bought restricted partnership items starting from 5%
to 49% of the full items excellent. Because of these controlling
pursuits, we consolidate the operations of those restricted partnerships with ours
although we don't personal in extra of fifty% of the fairness pursuits.
All intercompany transactions are eradicated in consolidation. The
non-controlling pursuits within the earnings of those restricted partnerships are
faraway from web revenue and will not be included within the calculation of earnings
per
share.



Revenue Taxes



We account for our revenue taxes utilizing FASB ASC Subject 740, "Revenue Taxes", which
requires amongst different issues, recognition of future tax advantages measured at
enacted charges attributable to deductible momentary variations between monetary
assertion and revenue tax foundation of property and liabilities and to tax web
working loss carryforwards and tax credit to the extent that realization of
stated tax advantages is extra doubtless than not. For dialogue relating to our
carryforwards seek advice from Notice 9 to the consolidated monetary statements for
our
fiscal yr 2021.



Different Issues



Affect of Inflation



The first inflationary elements affecting our operations are meals, beverage and
labor prices. Numerous restaurant personnel are paid at charges primarily based upon
relevant minimal wage and will increase in minimal wage instantly have an effect on labor
prices. Though inflation has had a fabric influence on our working outcomes, we
have offset elevated prices by rising our menu costs.

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