NOTE
G – LONG-TERM INVESTMENT
In
September 2012, Nathan’s purchased 351,550 shares of
Series A Preferred Stock in a privately-owned corporation for
$500. Nathan’s investment currently represents a 2.5%
equity ownership in the entity and Nathan’s does not
have the ability to exercise significant influence over the
investee. The shares have voting rights on the same basis as
the common shareholders and have certain dividend rights, if
declared. Nathan’s accounts for this investment
pursuant to the cost method and recognizes dividends
distributed by the investee as income to the extent that
dividends are distributed from net accumulated earnings of
the investee. There were no dividends declared by the
investee during the fifty-three week period ended March 31,
2013. Each reporting period, management reviews the carrying
value of this investment based upon the financial information
provided by the investment’s management and considers
whether indicators of impairment exist. If an impairment
indicator exists, management evaluates the fair value of its
investment to determine if an, other-than-temporary
impairment in value has occurred. We are required to
recognize an impairment on the investment if such impairment
is considered to be other-than-temporary. We have not
recognized any impairment on this investment during the
fifty-three week period ended March 31, 2013.
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