(12) Restaurant Acquisition On July 10, 2019, the Company completed the acquisition of the assets and operations of four Famous Dave's restaurants in Arizona (the Arizona Restaurants). The sellers of the Arizona Restaurants were Desert Ribs LLC, Famous Charlie LLC, Famous Freddie LLC, Famous Gracie LLC, and Famous George LLC, which were franchisees of the Company. The acquisition of the Arizona Restaurants was pursuant to the Purchase Agreement, as filed on June 26, 2019, resulting from a stalking horse bid in the sale process conducted under Sections 363 and 365 of Chapter 11 of the U.S. Bankruptcy Code. The purchase price of the Arizona Restaurants was approximately $1.6 million in cash and approximately $1.4 million for the assumption of gift card and other liabilities as specified in the Purchase Agreement, settlement of outstanding franchise billings, and fees related to debtor-in-possession financing . The Company incurred acquisition costs of approximately $166,000, which are reflected in general administrative expenses, associated with the purchase of the Arizona Restaurants. Effective as of the closing date of the acquisition, the franchise agreements for the Arizona Restaurants were terminated and outstanding receivables were considered additions to the purchase price. The acquisition was accounted for using the purchase method of accounting in accordance with ASC 805 Business Combinations and, accordingly, these consolidated statements of operations include the results of these operations from the date of acquisition. The assets acquired and the liabilities assumed were provisionally recorded at estimated fair values based on information available. The following table presents the provisional allocation of assets acquired and liabilities assumed for the Arizona Restaurants during the three months ended September 29, 2019: ? ? ? ? ? (in thousands) ? ? ? Assets acquired: ? ? ? Cash and cash equivalents ? $ 12 Inventory ? ? 103 Property, plant, equipment and leasehold improvements, net ? ? 5,177 Lease right-of-use asset, net of unfavorable lease value ? ? 731 Total identifiable assets acquired ? ? 6,023 Liabilities assumed: ? ? ? Gift card liability ? ? (428) Lease liability ? ? (2,992) Net assets acquired ? ? 2,603 Goodwill ? ? 415 Total consideration transferred ? $ 3,018 ? The Company expects goodwill to be deductible for tax purposes, subject to amortization. On March 4, 2019, the Company completed the acquisition of the assets and operations of four Famous Dave's restaurants in Colorado (the Colorado Restaurants). The sellers of the Colorado Restaurants were Legendary BBQ, Inc., Quebec Square BBQ, Inc., Cornerstar BBQ, Inc., Razorback BBQ, Inc., and Larkridge BBQ, Inc. Pursuant to the same purchase agreement as the acquisition of the Colorado Restaurants, on June 3, 2019, the Company completed the acquisition of the assets and operations of one Famous Dave's restaurant in Grand Junction, Colorado (the Grand Junction Restaurant). The seller of the Grand Junction Restaurant was Mesa Mall BBQ, Inc. The contract purchase price of the Colorado Restaurants and the Grand Junction Restaurant was approximately $4,100,000, exclusive of acquisition costs of approximately $209,000, which are reflected in general and administrative expenses, plus the assumption of the gift card liability associated with the restaurants. Accounts receivable amounts owed to the Company reduced the cash required to be paid for the purchase price. The Company also purchased inventory on hand as of the acquisition dates. Effective as of the closing date of the acquisitions, the franchise agreements for the Colorado Restaurants and the Grand Junction Restaurant were terminated. The Company provisionally allocated the purchase price of the Colorado Restaurants as of the end of the first quarter of fiscal 2019. As a result of the completion of the acquisition of the Grand Junction Restaurant, the Company provisionally allocated the identifiable tangible and intangible assets associated with the Grand Junction Restaurant, which resulted in the reduction of goodwill of approximately $0.6 million. The acquisition was accounted for using the purchase method of accounting in accordance with ASC 805 Business Combinations and, accordingly, these consolidated statements of operations include the results of these operations from the date of acquisition. The following table presents the provisional allocation of assets acquired and liabilities assumed for the Colorado Restaurants and the Grand Junction Restaurant during the nine months ended September 29, 2019: ? ? ? ? ? (in thousands) ? ? ? Assets acquired: ? ? ? Cash and cash equivalents ? $ 13 Inventory ? ? 176 Property, plant, equipment and leasehold improvements, net ? ? 3,139 Lease right-of-use asset, net of unfavorable lease value ? ? 6,729 Identifiable intangible assets, net ? ? 1,368 Total identifiable assets acquired ? ? 11,425 Liabilities assumed: ? ? ? Gift card liability ? ? (182) Lease liability ? ? (7,116) Net assets acquired ? ? 4,127 Goodwill ? ? 373 Total consideration transferred ? $ 4,500 ? The Company expects goodwill to be deductible for tax purposes, subject to amortization. During the nine months ended September 29, 2019, the Company completed several individually immaterial acquisitions of previously franchised Famous Daves restaurants. The acquisitions were 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 dates of the respective acquisitions. The assets acquired and the liabilities assumed were recorded at estimated fair values based on information available. Pursuant to these acquisitions, the Company incurred approximately $244,000 of acquisition costs, which are reflected in general and administrative expenses. As a result of the acquisition of previously franchised restaurants during the nine months ended September 29, 2019, the Company entered into five leases with a current franchisee pursuant to the respective purchase agreements. The following table presents the provisional allocation of assets acquired and liabilities assumed for the individually immaterial acquisitions during the nine months ended September 29, 2019: ? ? ? ? ? (in thousands) ? ? ? Assets acquired: ? ? ? Cash and cash equivalents ? $ 15 Inventory ? ? 202 Property, plant, equipment and leasehold improvements, net ? ? 362 Lease right-of-use asset, net of unfavorable lease value ? ? 6,109 Identifiable intangible assets, net ? ? 728 Total identifiable assets acquired ? ? 7,416 Liabilities assumed: ? ? ? Gift card liability ? ? (71) Lease liability ? ? (6,715) Net assets acquired ? ? 630 Gain on bargain purchase ? ? (178) Total consideration transferred ? $ 452 ? Unaudited pro forma results of operations for the three month and nine month periods ended September 29, 2019 and September 30, 2018, as if the Company had acquired majority ownership of all operations on January 1, 2018 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 29, 2019 ? September 30, 2018 ? September 29, 2019 ? September 30, 2018 (in thousands) ? ? ? ? ? ? ? ? Pro forma revenues ? $ 24,135 ? $ 25,630 ? $ 75,778 ? $ 77,565 Pro forma net income (loss) ? $ (195) ? $ 2,014 ? $ 1,632 ? $ 5,666 Basic pro forma net income (loss) per share ? $ (0.02) ? $ 0.22 ? $ 0.19 ? $ 0.67 Diluted pro forma net income (loss) per share ? $ (0.02) ? $ 0.22 ? $ 0.19 ? $ 0.67 ?