What changed in this filing

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

2023-12-29 compared with 2023-01-18 · 30 added, 39 removed, 14 unchanged (83% of the section changed)

5 unchanged sentences

Financial Statements and Supplementary Data”

of this Annual Report on Form 10-K for our fiscal year ended October 1, 2022, we use interest rate swap agreements to manage these risks.

of this Annual Report on Form 10-K for our fiscal year ended September 30, 2023, we use interest rate swap agreements to manage these

These instruments are not used for speculative purposes but are used to modify variable rate obligations into fixed rate obligations.

At October 1, 2022, we had two

variable rate instruments outstanding that are impacted by changes in interest rates.

The interest rate of the first variable rate debt

instrument is equal to the lender’s LIBOR Rate plus two and one-quarter percent (2.25%) per annum and the second variable rate debt

instrument is equal to the lender’s BSBY Screen Rate plus one and one-half percent (1.50%) per annum.

The debt instrument further

provides that the “LIBOR Rate” is a rate of interest equal to the British Bankers Association LIBOR Rate or successor thereto

approved by the lender if the British Bankers Association is no longer making a LIBOR rate available and the “BSBY Screen Rate is

a rate of interest equal to the Bloomberg Short-Term Bank Yield Interest Rate or successor thereto approved by the lender.

2016, we closed on a secured revolving line of credit which entitled us to borrow, from time to time through December 28, 2017, up to

$5,500,000 (the “Credit Line”), which on December 28, 2017 converted to a term loan (the “Term Loan”).

to the end of our fiscal year 2022 (December 28, 2022), we paid the balance of the Term Loan in full.

In September 2022, we refinanced

the mortgage loan encumbering the property where our combination package liquor store and restaurant located at 4 N.

Federal Highway,

Hallandale Beach, Florida, (Store #31) operates, which mortgage loan is held by an unaffiliated third party lender (the “$8.90M

At September 30, 2023, we had

one variable rate instrument outstanding that is impacted by changes in interest rates.

The interest rate of our variable rate debt instrument

is equal to the lender’s BSBY Screen Rate plus one and one-half percent (1.50%) per annum.

The debt instrument further provides

that the “BSBY Screen Rate is a rate of interest equal to the Bloomberg Short-Term Bank Yield Interest Rate or successor thereto

approved by the lender.

In September 2022, we refinanced the mortgage loan encumbering the property where our combination package liquor

store and restaurant located at 4 N.

Federal Highway, Hallandale Beach, Florida, (Store #31) operates, which mortgage loan is held by

an unaffiliated third-party lender (the “$8.90M Loan”).

As a means of managing our interest

rate risk on these debt instruments, we entered into interest rate swap agreements with our unrelated third party lender to convert these

variable rate debt obligations to fixed rates.

We are currently party to the following two (2) interest rate swap agreements:

The first interest rate swap agreement entered into in December 2016 and became effective December 28, 2017, relates to the Term Loan

(the “Term Loan Swap”).

The Term Loan Swap requires us to pay interest for a five (5) year period at a fixed rate of 4.61%

on an initial amortizing notional principal amount of $5,500,000, while receiving interest for the same period at LIBOR – 1 Month,

plus 2.25%, on the same amortizing notional principal amount.

We determined that at October 1, 2022, the interest rate swap agreement

is an effective hedging agreement and the fair value was not material.

Subsequent to the end of our fiscal year 2022 (December 28, 2022)

we paid the balance of the Term Loan in full, which was the same date the swap agreement matured;

second interest rate swap agreement entered into in September 2022 relates to the $8.90M Loan (the “$8.90M Term Loan Swap”).

The $8.90M Term Loan Swap requires us to pay interest for a fifteen (15) year period at a fixed rate of 4.90% on an initial amortizing

notional principal amount of $8,900,000, while receiving interest for the same period at BSBY Screen Rate – 1 Month, plus 1.50%,

on the same amortizing notional principal amount.

We determined that at October 1, 2022, the interest rate swap agreement is an effective

hedging agreement and the fair value was not material.

At October 1, 2022, our cash resources

offset our bank charges and any excess cash resources earn interest at variable rates.

Accordingly, our return on these funds is affected

by fluctuations in interest rates.

rate risk on this debt instrument, we entered into an interest rate swap agreement with our unrelated third-party lender to convert this

variable rate debt obligation to a fixed rate.

We are currently party to the following interest rate swap agreement:

(i) The interest rate swap agreement

entered into in September 2022 relates to the $8.90M Loan (the “$8.90M Term Loan Swap”).

The $8.90M Term Loan Swap requires

us to pay interest for a fifteen (15) year period at a fixed rate of 4.90% on an initial amortizing notional principal amount of $8,900,000,

while receiving interest for the same period at BSBY Screen Rate – 1 Month, plus 1.50%, on the same amortizing notional principal

As of September 30, 2023 the fair value of the swap agreement is now reflected on the balance sheet in other assets and accumulated

other comprehensive income.

We determined that the interest rate swap agreement is an effective hedging agreement and that changes in

fair value will be adjusted quarterly based on the valuation statement.

During our fiscal year 2023, we

invested the aggregate sum of $900,000 in 90-day certificates of deposit, fully government guaranteed and at an average fixed annual interest

rate of 4.87%.

Otherwise, as on September 30, 2023, our cash resources offset our bank charges and any excess cash resources earn interest

at variable rates.

Accordingly, our return on these funds is affected by fluctuations in interest rates.

There is no assurance that interest

5 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk