ARKRHIGH SIGNALOPERATIONAL10-K

ARKR lost its Bryant Park restaurant locations after lease expiration and faces substantially deteriorated cash generation despite maintaining its cash position.

The company has been reduced from 17 to 16 restaurant locations after losing the Bryant Park Grill Café and The Porch at Bryant Park when leases expired and a new operator was selected. While the new operator still awaits required city approvals, ARKR appears to have lost these prominent NYC locations permanently. The operational contraction coincides with meaningfully weakened cash flow performance, suggesting underlying business stress.

Comparing 2025-12-18 vs 2024-12-19View on EDGAR →
FINANCIAL ANALYSIS

ARKR's financial position deteriorated across most metrics, with operating cash flow substantially reduced from $4.7M to $1.8M while capital expenditures increased to $3.2M. The balance sheet contracted significantly with total assets declining 14.4% to $133.5M and stockholders' equity falling 25.9% to $32.7M, though cash reserves modestly increased to $11.3M. The combination of reduced cash generation, higher capital spending, and shrinking equity base signals operational and financial stress during a period of location losses.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
-62.4%
$4.7M→$1.8M

Operating cash flow fell 62.4% — earnings quality concerns; investigate working capital changes and non-cash items.

Accounts Receivable
Balance Sheet
-43.4%
$3.5M→$2.0M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Capital Expenditure
Cash Flow
+31.7%
$2.5M→$3.2M

Capital expenditure jumped 31.7% — major investment cycle underway; assess returns on deployment.

Stockholders Equity
Balance Sheet
-25.9%
$44.1M→$32.7M

Equity decreased 25.9% — buybacks or losses reducing book value, monitor solvency ratios.

Current Liabilities
Balance Sheet
-19.6%
$28.9M→$23.2M

Current liabilities reduced — improved short-term financial position and working capital health.

Total Assets
Balance Sheet
-14.4%
$156.0M→$133.5M

Total assets contracted 14.4% — asset sales, write-downs, or balance sheet optimization underway.

Inventory
Balance Sheet
-11.9%
$2.3M→$2.0M

Inventory reduced 11.9% — lean inventory management or demand outpacing supply.

Cash & Equivalents
Balance Sheet
+10.2%
$10.3M→$11.3M

Cash grew 10.2% — improving liquidity position supports investment and shareholder returns.

LANGUAGE CHANGES
NEW — 2025-12-18
PRIOR — 2024-12-19
ADDED
At December 12, 2025, there were outstanding 3,606,157 shares of the registrant s Common Stock, $0.01 par value.
As of the fiscal year ended September 27, 2025, we owned and/or operated 16 restaurants and bars, 12 fast food concepts and catering operations through our subsidiaries.
Recent Developments Bryant Park Grill The Company's agreements with the Bryant Park Corporation (the Landlord ) (a private non-profit corporation that operates and maintains Bryant Park under agreements with the City of New York Department of Parks Recreation), for the Bryant Park Grill Caf expired on April 30, 2025 and for The Porch at Bryant Park expired on March 31, 2025.
In July of 2023 (for the Bryant Park Grill Caf ) and September of 2023 (for The Porch at Bryant Park ), the Company received requests for proposals (the "RFPs") from the Landlord to which we responded on October 26, 2023.
In the second quarter of 2025, the Landlord stated publicly that it had selected a new operator for the Bryant Park Grill Caf and The Porch at Bryant Park .
However, to the best of our knowledge, no agreements between the Landlord and the selected operator have received the approvals of either the City of New York Department of Parks Recreation or the New York Public Library, of which both approvals are required before any new lease can become effective.
Management has been working with outside advisors to assist our efforts to ensure that the RFP awards process was both fair and transparent and to enforce the Company's right of first lease under our lease agreements, and otherwise to protect the Company s rights with respect to these matters.
For a discussion of the related claims filed by the Company, please see Note 10 - Commitments and Contingencies to the Consolidated Financial Statements.
As of the date of this filing, we continue to operate the above properties and intend to do so until we are either awarded the lease extensions or ordered to vacate the premises.
The underlying lawsuit filed by the Company to protect its rights continues, and we will pursue all available options to protect the Company's interests.
REMOVED
At December 13, 2024, there were outstanding 3,604,157 shares of the registrant s Common Stock, $0.01 par value.
As of the fiscal year ended September 28, 2024, we owned and/or operated 17 restaurants and bars, 16 fast food concepts and catering operations through our subsidiaries.
5 The following table sets forth the restaurant properties we lease, own and operate as of September 28, 2024: Name Location Year Opened(1) Restaurant Size (Square Feet) Seating Capacity(2) Indoor- (Outdoor) Lease Expiration(3) Sequoia Washington Harbour Washington, D.C.
(4) The Company's leases for the Bryant Park Grill Cafe and The Porch at Bryant Park expire on April 30, 2025.
During July 2023 (for Bryant Park Grill Cafe) and September 2023 (for The Porch at Bryant Park) , the Company received requests for proposals (the "RFPs") from the landlord which we responded to on October 26, 2023.
The RFPs for both 6 locations are for new 10-year agreements with one five-year renewal option (see Note 11 - Commitments and Contingencies to the Consolidated Financial Statements).
(4) Management fees earned, which have been eliminated in consolidation, are based on a percentage of cash flow of the restaurant.
(5) We own a 19.2% interest in the partnership that owns El Rio Grande .
The Company advised the landlord of El Rio Grande we would be terminating the lease and closing the property permanently on or around January 1, 2025 (see Management s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources - Recent Restaurant Dispositions).
(7) We own a 64.4% interest in the partnership that owns the Tampa and Hollywood Food Courts .
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