(4) PURCHASE OF REAL PROPERTY:

During the third quarter of our fiscal year 2026, we purchased the real property and improvements located at 950 S. Federal Highway, Stuart, Florida, where our Company-owned Flanigan’s Seafood Bar and Grill restaurant (Store #75) operates and our seller, an unrelated third party, operated a franchised hotel, (the “Stuart Property”) for a purchase price of $8,450,000. We paid all cash at closing. The hotel franchise agreement was terminated by our seller as a part of our purchase of the Stuart Property and we plan to demolish the two vacant hotel buildings located thereon. We will continue to operate our Flanigan’s Seafood Bar and Grill restaurant as a free-standing building, with outdoor seating and additional parking. Our lease for the premises terminated with the closing of our purchase of the Stuart Property.

During the third quarter of our fiscal year 2025, we purchased the vacant real property located at 20971 Old Cutler Road, Cutler Bay, Florida 33189 (the “Cutler Bay Property”) for a purchase price of $2,200,000. We paid all cash at closing. We plan to construct a 6,400 square foot building on the Cutler Bay Property to lease to a limited partnership of which we will be the sole general partner pursuant to our limited partnership financial arrangement to develop and operate a “Flanigan’s” restaurant.