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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>Note
3 — Property And Equipment</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Property
and equipment, net consists of the following:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif"><b>March
31,</b></font><br />
<font style="font-family: Times New Roman, Times, Serif"><b>2019</b></font></p></td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td><td style="font-weight: bold; padding: 0 0 1.5pt; text-indent: 0"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">December 31,<br /> 2018</td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">Leasehold improvements</td><td style="width: 1%; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="width: 1%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">$</td><td style="width: 9%; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">140,489</td><td style="width: 1%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="width: 1%; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="width: 1%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">$</td><td style="width: 9%; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">133,743</td><td style="width: 1%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">Furniture, fixtures and office equipment</td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">65,824</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">59,207</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">Construction in progress (site development)</td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">2,401</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">11,968</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td></tr>
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<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">Projection equipment and screens</td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">12,703</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">11,125</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding: 0 0 1.5pt; text-indent: 0">Computer hardware and software</td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">7,593</td><td style="padding: 0 0 1.5pt; text-align: left; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">7,157</td><td style="padding: 0 0 1.5pt; text-align: left; text-indent: 0"> </td></tr>
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<td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">229,010</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">223,200</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding: 0 0 1.5pt; text-indent: 0">Less: accumulated depreciation and amortization</td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">(84,448</td><td style="padding: 0 0 1.5pt; text-align: left; text-indent: 0">)</td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">(79,661</td><td style="padding: 0 0 1.5pt; text-align: left; text-indent: 0">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding: 0 0 4pt; text-indent: 0">Total</td><td style="font-weight: bold; padding: 0 0 4pt; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">144,562</td><td style="padding: 0 0 4pt; font-weight: bold; text-align: left; text-indent: 0"> </td><td style="font-weight: bold; padding: 0 0 4pt; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">143,539</td><td style="padding: 0 0 4pt; font-weight: bold; text-align: left; text-indent: 0"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">After a detailed review of first generation
(Generation I) locations, the Company decided against reinvestment at its Glendale, Wisconsin location, where the Bayshore Mall
was placed into receivership. The Company instead announced the closing of this location effective March 8, 2018.  The decision
to close the location was made during an all-hands conference call on March 5, 2018. The events giving rise to that decision include
the mall entering receivership during the last quarter of 2017 and the underperformance of the site during the first quarter of
2018. The Company evaluated the long-lived assets at its Glendale location at December 31, 2017 and determined that the long-lived
assets with a carrying value of $428 were no longer recoverable. Consequently, the assets were written down to $0.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
remaining minimum lease obligation at the date of closure was approximately $4,100 over the next six years.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has established a liability of $1,839 for the remaining lease obligation associated with the Glendale location in
the accompanying unaudited condensed consolidated balance sheets. The current portion of the lease liability is included with
“Accrued expenses” and the long-term portion is included in “Other long-term liabilities”. As of March
31, 2019, the future lease obligation was recorded at present value and discounted at an annual rate of 13%. Sublease payments
were anticipated to be received 24 months from the abandonment date. The sublease payments were estimated to be 50% less than
the Company’s lease payment obligation through the remainder of the lease.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company capitalizes interest costs on borrowings incurred during the new construction or upgrade of qualifying assets. During
the three months ended March 31, 2019 and 2018, the Company incurred interest costs totaling $4,988 and $4,614 respectively, of
which $156 and $0 was capitalized, respectively.</font></p>
The future lease obligation was recorded at present value and discounted at an annual rate of 13%. Sublease payments were anticipated to be received 24 months from the abandonment date. The sublease payments were estimated to be 50% less than the Company's lease payment obligation through the remainder of the lease.
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
4 — BORROWINGS</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Long-Term
Debt — Related Party</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has a $225,828 non-revolving credit facility (the “Non-revolving Credit Facility”) with the Teachers’
Retirement System of Alabama (the “TRSA”) and The Employees’ Retirement System of Alabama (the “ERSA”)
(the TRSA and the ERSA are known collectively as the “RSA”). The terms of the facility provide that the Company can
borrow under the facility for a thirteen-year period commencing September 30, 2010 in three tranches (hereinafter, “Tranche
1”, “Tranche 2”, and “Tranche 3”). Proceeds of the loans were initially to be used for up to 80%
of eligible construction costs. As a condition to any advance, the Company was required to provide funding for the applicable
project costs in an amount equal to 25% of such advance, with the proceeds of either (x) contributions to the Company from certain
shareholders (other than RSA) or (y) subordinated loans to the Company from certain shareholders (other than RSA) (the “Matching
Requirement”). In addition, the remaining availability required the Company to achieve certain operating targets to continue
borrowing (the “Operating Target Requirement”). On June 22, 2018 the Non-revolving Credit Facility was modified to
remove the matching requirement and to permit us to borrow up to $17,923 on five planned remodeling projects. An amount equal
to eighty percent (80%) of the total costs to develop each project constitutes a “Project Tranche”. Any changes to
the amount of a Project Tranche (either increases or decreases) are subject to prior written consent from the lender. On June
29, 2018 the Non-revolving Credit Facility was further modified to permit us to borrow funds up to $8,233 for working capital
expenses (including, among other things, accrued interest on the Non-revolving Credit Facility, which may be paid in kind), in
addition to the borrowing for planned 2018 remodeling projects. On June 29, 2018 the Non-revolving Credit Facility was amended
to remove the Operating Target Requirement for planned remodeling and working capital advances. </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">The Tranche 1 and Tranche 2 commitment amounts
of $15,828 and $24,000 respectively, were fully borrowed against as of March 31, 2019 and December 31, 2018. Of the total commitment
amounts of $186,000 available in Tranche 3, $163,738 and $148,433 were borrowed as of March 31, 2019 and December 31, 2018, respectively.
As of March 31, 2019, $22,262 remained available to borrow from Tranche 3 for the planned remodels and new construction, as well
as, working capital requirements subject to certain limitations.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
effective interest rate on Tranche 1 and Tranche 2 borrowings is approximately 6.95% per annum. The cumulative difference between
the interest computed using the stated interest rates (8.00% at March 31, 2019 and December 31, 2018) and the effective interest
rate of 6.95% is $532 and $621 at March 31, 2019 and December 31, 2018, respectively, and is recorded in “Accrued interest
- long-term” in the accompanying unaudited condensed consolidated balance sheets. The interest rate on Tranche 3 borrowings
is fixed at 10.50% per annum.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Short-Term
Financing</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company periodically enters into short-term
financing arrangements to finance the costs of its property and casualty insurance premiums. The loans are due in equal monthly
installments of principal and interest, generally paid over a period of less than one year. Interest accrues on the unpaid principal
at 3.63% per annum. At March 31, 2019 and December 31, 2018, the Company’s obligation under premium financing arrangements
was $1,177 and $1,392, respectively, and is included in accrued insurance in the accompanying unaudited condensed consolidated
balance sheets.</p>
225828000
8233000
The terms of the facility provide that the Company can borrow under the facility for a thirteen-year period commencing September 30, 2010 in three tranches (hereinafter, "Tranche 1", "Tranche 2", and "Tranche 3"). Proceeds of the loans were initially to be used for up to 80% of eligible construction costs. As a condition to any advance, the Company was required to provide funding for the applicable project costs in an amount equal to 25% of such advance, with the proceeds of either (x) contributions to the Company from certain shareholders (other than RSA) or (y) subordinated loans to the Company from certain shareholders (other than RSA) (the "Matching Requirement"). In addition, the remaining availability required the Company to achieve certain operating targets to continue borrowing (the "Operating Target Requirement"). On June 22, 2018 the Non-revolving Credit Facility was modified to remove the matching requirement and to permit us to borrow up to $17,923 on five planned remodeling projects.
The cumulative difference between the interest computed using the stated interest rates (8.00% at March 31, 2019 and December 31, 2018) and the effective interest rate of 6.95% is $532 and $621 at March 31, 2019 and December 31, 2018, respectively, and is recorded in "Accrued interest - long-term" in the accompanying unaudited condensed consolidated balance sheets.
0
0
2984000
-402000
-1954000
-64000
-454000
488000
2422000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -10pt; padding-left: 10pt">Minimum rentals</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,114</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,136</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Contingent rentals</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,114</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,136</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted Average</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Grant Date Fair Value Per Option</b> </font></p></td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted Average Exercise Price per Option</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; font-weight: bold">Outstanding - December 31, 2018</td><td style="width: 1%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 9%; font-weight: bold; text-align: right">1,040,424</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 1%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-weight: bold; text-align: right">4.31</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 1%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-weight: bold; text-align: right">16.80</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold">Exercisable - December 31, 2018</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">346,749</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">3.77</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">14.15</td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Forfeited/Cancelled</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,526</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">4.24</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">16.46</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding-bottom: 4pt">Outstanding – March 31, 2019</td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,037,898</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4.31</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">16.82</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; padding-bottom: 4pt">Exercisable – March 31, 2019</td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">343,598</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">3.77</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">14.17</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><font style="font-family: Times New Roman, Times, Serif"><b>March
31,</b></font><br />
<font style="font-family: Times New Roman, Times, Serif"><b>2019</b></font></p></td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td><td style="font-weight: bold; padding: 0 0 1.5pt; text-indent: 0"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">December 31,<br /> 2018</td><td style="padding: 0 0 1.5pt; font-weight: bold; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">Leasehold improvements</td><td style="width: 1%; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="width: 1%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">$</td><td style="width: 9%; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">140,489</td><td style="width: 1%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="width: 1%; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="width: 1%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">$</td><td style="width: 9%; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">133,743</td><td style="width: 1%; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">Furniture, fixtures and office equipment</td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">65,824</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">59,207</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">Construction in progress (site development)</td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">2,401</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">11,968</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">Projection equipment and screens</td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">12,703</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">11,125</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding: 0 0 1.5pt; text-indent: 0">Computer hardware and software</td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">7,593</td><td style="padding: 0 0 1.5pt; text-align: left; text-indent: 0"> </td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">7,157</td><td style="padding: 0 0 1.5pt; text-align: left; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">229,010</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td>
<td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">223,200</td><td style="text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding: 0 0 1.5pt; text-indent: 0">Less: accumulated depreciation and amortization</td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">(84,448</td><td style="padding: 0 0 1.5pt; text-align: left; text-indent: 0">)</td><td style="padding: 0 0 1.5pt; text-indent: 0"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">(79,661</td><td style="padding: 0 0 1.5pt; text-align: left; text-indent: 0">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding: 0 0 4pt; text-indent: 0">Total</td><td style="font-weight: bold; padding: 0 0 4pt; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">144,562</td><td style="padding: 0 0 4pt; font-weight: bold; text-align: left; text-indent: 0"> </td><td style="font-weight: bold; padding: 0 0 4pt; text-indent: 0"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right; padding-top: 0; padding-right: 0; padding-left: 0; text-indent: 0">143,539</td><td style="padding: 0 0 4pt; font-weight: bold; text-align: left; text-indent: 0"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: justify">LLC Interests</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">4,323,755</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Non-Qualified Options</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,037,898</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt">Selling Agents' Warrants</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,005</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">5,379,658</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
The Company computed net loss per share only for the period our common stock was outstanding during 2018, referred to as the "Post-IPO Period". We have defined the Post-IPO Period as February 1, 2018, the date our shares began trading on the NASDAQ, through March 31, 2018, or 59 days of activity for the reporting period ended March 31, 2018. Basic net loss per share is computed by dividing the net loss attributable to Class A Common Stockholders for the Post-IPO Period by the weighted-average number of shares of Class A Common Stock outstanding during the Post-IPO Period.
Non-accelerated Filer
1500000
1392000
1178000
4442000
-119221000
-124225000
-121988000
-18757000
21523000
-133891000
-121822000
-28062000
15992000
0
1000
-206397000
-1934000
-140744000
-149883000
-124225000
-208330000
122893000
1000
1000
-4442000
-4442000
2500000
2500000
95000
95000
126072000
-14083000
111989000
-111989000
818429
1375000
1375000
10948000
429730
9926621
1000
1000
-198786000
-198786000
198786000
946000
946000
7527000
-1934000
-1934000
-15385000
4151000
4151000
33006000
266000
166000
166000
100000
-14936000
-9305000
-9305000
-5631000
1040424
1037898
346749
343598
2526
4.31
4.31
4.24
3.77
3.77
16.80
16.82
14.15
14.17
16.46
-21761000
-14936000
17.02
P9Y
142898
-755000
-434000
18000000
6529000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Locations</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
March 31, 2019 and 2018, the Company operated a total of sixteen and fifteen cinemas, respectively, in the following locations
throughout the United States:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 50%"><font style="font: 10pt Times New Roman, Times, Serif">●    Glendale,
Wisconsin<sup>1</sup></font></td>
<td style="width: 50%"><font style="font: 10pt Times New Roman, Times, Serif">●    Scottsdale,
Arizona</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Pasadena, California</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Bolingbrook,
Illinois</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Austin, Texas</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    South Barrington,
Illinois</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Fairview, Texas</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Los Angeles,
California</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Boca Raton, Florida</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Houston, Texas</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Bethesda, Maryland</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Fort Lee, New
Jersey</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    North Miami,
Florida</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    New York, New
York</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Redmond, Washington</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Dobbs Ferry,
New York</font></td></tr>
<tr style="vertical-align: bottom">
<td><p style="margin: 0pt 0">●    Delray Beach, Florida<sup>2</sup></p>
</td>
<td></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 29px; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><sup>1</sup></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Location was closed
in the first quarter of 2018. Refer to Note 3 “Property and Equipment”.</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><sup>2</sup></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Location was opened
on March 7, 2019</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0"><b>NOTE 2 — REVENUE RECOGNITION</b></p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0"><i>Revenue Recognition Policy</i></p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">Food and beverage revenue is our largest source
of revenue. This includes all food and beverage sales within our restaurants, theaters and bars. Food revenues refer to food and
non-alcoholic beverages, and food offerings vary based on regional preferences and concepts as described in our restaurant brands
section. Beverage revenues refer to alcoholic beverages sold within our locations, all of which are fully licensed.</p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">Theater revenue is our second largest source of
revenue. We predominantly license first-run films from major distributors through direct negotiation. All of our theaters are equipped
to offer content in 2D and 3D format. Theater revenue depends largely on the timing and popularity of films released by distributors,
so revenues attributed to any one particular distributor can vary significantly from year to year based on content. Theater revenue
includes revenue from all sponsorship activities, advertising, rental of auditoriums for private functions, live shows, gaming
events, academy screenings, corporate functions, corporate rentals, other revenue-generating showings, and other fees. Other Revenue
includes membership revenue, bowling, parking and valet, and gift card breakage.</p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">The Company recognizes food and beverage revenue
at the point of sale. Theater revenue is recognized at the time tickets are remitted to the theater for admission. These performance
obligations are satisfied at a point in time when the customer obtains control of the goods, which generally occurs at or near
the same time the transaction was initiated for food and beverage or upon showing of the movie for which an admission ticket was
purchased. The proceeds from advance ticket sales and the sale of gift certificates and gift cards are deferred and recognized
as revenues once the respective admission ticket that was purchased in advance or gift certificate or gift card is received or
tendered at the theaters.</p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">The Company is required to collect certain taxes
from customers on behalf of government agencies and remit these to the applicable government agencies on a periodic basis. These
taxes are legal assessments on the customer and the Company has a legal obligation to act as a collection agent. Because the Company
does not retain these taxes, the Company does not include such amounts in revenues. The Company records a liability when the amounts
are collected and relieves the liability when payments are made to the applicable government agencies.</p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">The Company maintains a membership program, whereby
members earn and accrue points based on purchases, which are redeemable on future purchases of tickets or food and beverage. For
every dollar a member spends, the member receives one point which is equal to one cent. Points are redeemable once a member earns
500 points or greater. The Company uses the deferred revenue model which results in the transaction price being allocated to the
products and services sold and the award credits, with revenue recognized as each element is delivered. The portion of the theater
and food and beverage revenues attributed to the rewards is deferred as a reduction of theater and food and beverage revenues,
respectively. Upon redemption, deferred rewards are recognized as revenues along with associated cost of goods. The Company charges
an annual fee for this membership program, which is recorded as deferred revenue and recognized over the duration of the twelve-month
membership period the customer is receiving the benefits. The revenue from the annual fee is included in other revenues in the
accompanying Unaudited Condensed Consolidated Statements of Operations.</p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">The Company sells gift cards to customers
at its locations and through its website. There are no administrative fees charged nor do the gift cards have an expiration
date. Revenues from gift cards are recognized when gift cards are redeemed. In addition, the Company recognizes “breakage”
on unredeemed gift cards based upon historical redemption patterns and the time that has transpired since the card was last used.
The Company recognizes breakage proportionally to the percentage of redemptions that historically occur in each year after a gift
card is sold. Revenue from gift card breakage is included in other revenues in the accompanying Unaudited Condensed Consolidated
Statements of Operations.</p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><i>Adoption of ASC Topic 606</i></p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">The Company adopted ASC 606 on January 1,
2019 using the modified retrospective method; therefore, the comparative information has not been adjusted for the three
months ended March 31, 2018. The Company has completed its analysis and concluded the adoption of ASC 606 did not materially
impact the timing of revenue recognition for food and beverage revenue, theater revenue, membership rewards program, other
revenue streams, including revenues for unredeemed gift cards and advance ticket sales.</p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"><i>Disaggregation of Revenue</i>:<b>  </b>Revenue is disaggregated
in the following tables by major revenue types and by timing of revenue recognition: </p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman,serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman,serif; text-align: center">Three Months Ended</td><td style="font: bold 10pt Times New Roman,serif"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman,serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman,serif; text-align: center; border-bottom: Black 1.5pt solid">March 31, 2019</td><td style="padding-bottom: 1.5pt; font: bold 10pt Times New Roman,serif"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: bold 10pt Times New Roman,serif; text-align: left">Major revenue types</td><td style="font: 10pt Calibri,sans-serif"> </td>
<td colspan="2" style="font: 10pt Calibri,sans-serif; text-align: right"> </td><td style="font: 10pt Calibri,sans-serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 85%; font: 10pt Times New Roman,serif; text-align: left; padding-left: 20pt">Food and beverage</td><td style="width: 1%; font: 10pt Times New Roman,serif"> </td>
<td style="width: 1%; font: 10pt Times New Roman,serif; text-align: left">$</td><td style="width: 12%; font: 10pt Times New Roman,serif; text-align: right">15,685</td><td style="width: 1%; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman,serif; text-align: left; padding-left: 20pt">Theater</td><td style="font: 10pt Times New Roman,serif"> </td>
<td style="font: 10pt Times New Roman,serif; text-align: left"> </td><td style="font: 10pt Times New Roman,serif; text-align: right">14,071</td><td style="font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman,serif; text-align: left; padding-bottom: 1.5pt; padding-left: 20pt">Other</td><td style="font: 10pt Times New Roman,serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman,serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman,serif; text-align: right">482</td><td style="padding-bottom: 1.5pt; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman,serif; text-align: left; padding-bottom: 4pt; padding-left: 30pt">Total revenues</td><td style="font: 10pt Times New Roman,serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman,serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman,serif; text-align: right">30,238</td><td style="padding-bottom: 4pt; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman,serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman,serif; text-align: center">Three Months Ended</td><td style="font: bold 10pt Times New Roman,serif"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman,serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman,serif; text-align: center; border-bottom: Black 1.5pt solid">March 31, 2019</td><td style="padding-bottom: 1.5pt; font: bold 10pt Times New Roman,serif"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: bold 10pt Times New Roman,serif; text-align: left">Timing of revenue recognition</td><td style="font: 10pt Calibri,sans-serif"> </td>
<td colspan="2" style="font: 10pt Calibri,sans-serif"> </td><td style="font: 10pt Calibri,sans-serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 85%; font: 10pt Times New Roman,serif; text-align: left; padding-left: 20pt">Products and services transferred at a point in time</td><td style="width: 1%; font: 10pt Times New Roman,serif"> </td>
<td style="width: 1%; font: 10pt Times New Roman,serif; text-align: left">$</td><td style="width: 12%; font: 10pt Times New Roman,serif; text-align: right">29,756</td><td style="width: 1%; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman,serif; text-align: left; padding-bottom: 1.5pt; padding-left: 20pt">Products and services transferred over time</td><td style="font: 10pt Times New Roman,serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman,serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman,serif; text-align: right">482</td><td style="padding-bottom: 1.5pt; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman,serif; text-align: left; padding-bottom: 4pt; padding-left: 30pt">Total revenues</td><td style="font: 10pt Times New Roman,serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman,serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman,serif; text-align: right">30,238</td><td style="padding-bottom: 4pt; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br /> 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>Contract liabilities:</td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-left: 12pt"><font style="font: 10pt Times New Roman, Times, Serif">Deferred revenue related to contracts with customers<sup>(1)</sup></font></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,122</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,541</td><td style="width: 1%; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0"></td><td style="width: 0.25in; text-align: left"><sup>(1)</sup></td><td style="text-align: justify">Revenue recognized for period ending March 31, 2019, $2,512</td></tr></table>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman,serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman,serif; text-align: center">Three Months Ended</td><td style="font: bold 10pt Times New Roman,serif"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman,serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman,serif; text-align: center; border-bottom: Black 1.5pt solid">March 31, 2019</td><td style="padding-bottom: 1.5pt; font: bold 10pt Times New Roman,serif"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: bold 10pt Times New Roman,serif; text-align: left">Major revenue types</td><td style="font: 10pt Calibri,sans-serif"> </td>
<td colspan="2" style="font: 10pt Calibri,sans-serif; text-align: right"> </td><td style="font: 10pt Calibri,sans-serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 85%; font: 10pt Times New Roman,serif; text-align: left; padding-left: 20pt">Food and beverage</td><td style="width: 1%; font: 10pt Times New Roman,serif"> </td>
<td style="width: 1%; font: 10pt Times New Roman,serif; text-align: left">$</td><td style="width: 12%; font: 10pt Times New Roman,serif; text-align: right">15,685</td><td style="width: 1%; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman,serif; text-align: left; padding-left: 20pt">Theater</td><td style="font: 10pt Times New Roman,serif"> </td>
<td style="font: 10pt Times New Roman,serif; text-align: left"> </td><td style="font: 10pt Times New Roman,serif; text-align: right">14,071</td><td style="font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman,serif; text-align: left; padding-bottom: 1.5pt; padding-left: 20pt">Other</td><td style="font: 10pt Times New Roman,serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman,serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman,serif; text-align: right">482</td><td style="padding-bottom: 1.5pt; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman,serif; text-align: left; padding-bottom: 4pt; padding-left: 30pt">Total revenues</td><td style="font: 10pt Times New Roman,serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman,serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman,serif; text-align: right">30,238</td><td style="padding-bottom: 4pt; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman,serif"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman,serif; text-align: center">Three Months Ended</td><td style="font: bold 10pt Times New Roman,serif"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: left"> </td><td style="font: bold 10pt Times New Roman,serif; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font: bold 10pt Times New Roman,serif; text-align: center; border-bottom: Black 1.5pt solid">March 31, 2019</td><td style="padding-bottom: 1.5pt; font: bold 10pt Times New Roman,serif"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: bold 10pt Times New Roman,serif; text-align: left">Timing of revenue recognition</td><td style="font: 10pt Calibri,sans-serif"> </td>
<td colspan="2" style="font: 10pt Calibri,sans-serif"> </td><td style="font: 10pt Calibri,sans-serif"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 85%; font: 10pt Times New Roman,serif; text-align: left; padding-left: 20pt">Products and services transferred at a point in time</td><td style="width: 1%; font: 10pt Times New Roman,serif"> </td>
<td style="width: 1%; font: 10pt Times New Roman,serif; text-align: left">$</td><td style="width: 12%; font: 10pt Times New Roman,serif; text-align: right">29,756</td><td style="width: 1%; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Times New Roman,serif; text-align: left; padding-bottom: 1.5pt; padding-left: 20pt">Products and services transferred over time</td><td style="font: 10pt Times New Roman,serif; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman,serif; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman,serif; text-align: right">482</td><td style="padding-bottom: 1.5pt; font: 10pt Times New Roman,serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 10pt Times New Roman,serif; text-align: left; padding-bottom: 4pt; padding-left: 30pt">Total revenues</td><td style="font: 10pt Times New Roman,serif; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font: 10pt Times New Roman,serif; text-align: left">$</td><td style="border-bottom: Black 4pt double; font: 10pt Times New Roman,serif; text-align: right">30,238</td><td style="padding-bottom: 4pt; font: 10pt Times New Roman,serif; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-indent: 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December 31,<br /> 2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>Contract liabilities:</td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-left: 12pt"><font style="font: 10pt Times New Roman, Times, Serif">Deferred revenue related to contracts with customers<sup>(1)</sup></font></td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,122</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,541</td><td style="width: 1%; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><tr style="vertical-align: top; text-align: justify">
<td style="width: 0"></td><td style="width: 0.25in; text-align: left"><sup>(1)</sup></td><td style="text-align: justify">Revenue recognized for period ending March 31, 2019, $2,512</td></tr></table>
29756000
482000
12865000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif; text-transform: uppercase"><b>NOTE
1 — Organization and Summary of Significant Accounting Policies</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Organization</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">IPIC Entertainment Inc. (“IPIC”)
was formed as a Delaware corporation on October 18, 2017. IPIC was formed for the purpose of completing an initial public offering
(“IPO”) and related transactions in order to carry on the business of IPIC-Gold Class Entertainment, LLC (“IPIC-Gold
Class”) and its subsidiaries. Additionally, IPIC-Gold Class Holdings LLC (“Holdings”) was formed as a Delaware
limited liability company on December 22, 2017, to hold the equity interests in IPIC-Gold Class. IPIC is the sole managing member
of Holdings, and Holdings is the sole managing member of IPIC-Gold Class and its subsidiaries. Holdings is consolidated as part
of IPIC. The assets and liabilities of Holdings represent substantially all of our consolidated assets and liabilities. IPIC and
its subsidiaries are collectively referred to throughout the consolidated financial statements and related notes as the “Company”,
“we”, “our” or “us”.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Principles of Consolidation and Basis of Presentation</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying (a) unaudited
condensed  consolidated balance sheet as of December 31, 2018, which has been derived from audited financial statements
that included explanatory going concern language in the independent registered public accounting firm’s report
accompanying those statements, and (b) the unaudited interim condensed consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in
accordance with the instructions to Form 10–Q. Accordingly, they do not include all of the information and
footnotes required by GAAP for complete consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the opinion of management, the accompanying
unaudited interim condensed consolidated financial statements reflect all normal and recurring adjustments that are necessary for
the fair presentation of the financial position of the Company as of March 31, 2019, the results of operations for the three month
period ended March 31, 2019 and 2018 and the cash flows for the three month periods ended March 31, 2019 and 2018, and should be
read in conjunction with the Company’s Annual Report on Form 10–K for the year ended December 31, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> <font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All
significant intercompany balances and transactions have been eliminated in consolidation.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Locations</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
March 31, 2019 and 2018, the Company operated a total of sixteen and fifteen cinemas, respectively, in the following locations
throughout the United States:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 50%"><font style="font: 10pt Times New Roman, Times, Serif">●    Glendale,
Wisconsin<sup>1</sup></font></td>
<td style="width: 50%"><font style="font: 10pt Times New Roman, Times, Serif">●    Scottsdale,
Arizona</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Pasadena, California</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Bolingbrook,
Illinois</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Austin, Texas</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    South Barrington,
Illinois</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Fairview, Texas</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Los Angeles,
California</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Boca Raton, Florida</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Houston, Texas</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Bethesda, Maryland</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Fort Lee, New
Jersey</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    North Miami,
Florida</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    New York, New
York</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Redmond, Washington</font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●    Dobbs Ferry,
New York</font></td></tr>
<tr style="vertical-align: bottom">
<td><p style="margin: 0pt 0">●    Delray Beach, Florida<sup>2</sup></p>
</td>
<td></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 29px; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><sup>1</sup></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Location was closed
in the first quarter of 2018. Refer to Note 3 “Property and Equipment”.</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><sup>2</sup></font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Location was opened
on March 7, 2019</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>New
Accounting Standards</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
an emerging growth company, the Company has elected the option to defer the effective date for adoption of new or revised accounting
guidance. This option allows the Company to adopt new guidance on the effective date for entities that are not public business
entities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Revenue
Recognition</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, <i>Revenue
from Contracts with Customers (Topic 606) (“ASU 2014-09”)</i>. The purpose of ASU 2014-09 is to clarify the principles
for recognizing revenue and create a common revenue standard for U.S. GAAP and International Financial Reporting Standards. ASU
2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts
for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance
contracts or lease contracts). The following subsequent Accounting Standards Updates either clarified or revised guidance set
forth in ASU 2014-09:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt Times New Roman, Times, Serif">In
August 2015, the FASB issued Accounting Standards Update 2015-14, <i>Revenue from Contracts with Customers (Topic 606):
Deferral of the Effective Date (“ASU 2015-14”)</i>. ASU 2015-14 deferred the effective date of ASU 2014-09. The
guidance in ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 for public business
entities and for all other entities subsequent to December 15, 2018, including interim reporting periods within that reporting
period.</font> The Company has adopted the new standard in the first quarter of 2019.</p>
<p style="margin-top: 0; margin-bottom: 0"></p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In March 2016, the
FASB issued Accounting Standards Update 2016-08, <i>Revenue from Contracts with Customers (Topic 606): Principal versus Agent
Considerations (Reporting Revenues Gross versus Net) (“ASU 2016-08”)</i>. The purpose of ASU 2016-08 is to clarify
the implementation of revenue recognition guidance for principal versus agent considerations.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In April 2016, the
FASB issued Accounting Standards Update 2016-10, <i>Revenue from Contracts with Customers (Topic 606): Identifying Performance
Obligations and Licensing (“ASU 2016-10”)</i>. The purpose of ASU 2016-10 is to clarify certain aspects of identifying
performance obligations and licensing implementation guidance.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In May 2016, the
FASB issued Accounting Standards Update 2016-12, <i>Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements
and Practical Expedients (“ASU 2016-12”).</i> The purpose of ASU 2016-12 is to address certain narrow aspects
of Accounting Standards Codification (“ASC”) Topic 606 including assessing collectability, presentation of sales
taxes, noncash considerations, contract modifications and completed contracts at transition.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In December 2016,
the FASB issued Accounting Standards Update 2016-20, <i>Technical Corrections and Improvements to Topic 606, Revenue from
Contracts with Customers (“ASU 2016-20”). </i>The purpose of ASU 2016-20 is to amend certain narrow aspects of
the guidance issued in ASU 2014-09 related to the disclosure of performance obligations, as well as other amendments related
to loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In March 2016, the FASB issued Accounting
Standards Update 2016-04, <i>Liabilities-Extinguishments of Liabilities (Subtopic 405-20)</i>. This amendment provides a narrow
scope exception to Liabilities-Extinguishment of Liabilities (Subtopic 405-20) that requires breakage for those liabilities to
be accounted for in accordance with the breakage guidance in Accounting Standards Update 2014-09, <i>Revenue from Contracts with
Customers (Topic 606)</i>. Under the new guidance, if an entity expects to be entitled to a breakage amount for a liability resulting
from the sale of a prepaid stored-value product, the entity shall derecognize the amount related to the expected breakage in proportion
to the pattern of rights expected to be exercised by the product holder only to the extent that it is probable that a significant
reversal of the recognized breakage amount will not subsequently occur. If an entity does not expect to be entitled to a breakage
amount for a prepaid stored-value product, the entity shall derecognize the amount related to the breakage when the likelihood
of the product holder exercising its remaining rights becomes remote. The Accounting Standards Update is effective for public
business entities for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within
those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning
after December 15, 2018. The Company has adopted the new standard in the first quarter of 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>New
Accounting Standards</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
an emerging growth company, the Company has elected the option to defer the effective date for adoption of new or revised accounting
guidance. This option allows the Company to adopt new guidance on the effective date for entities that are not public business
entities.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><i>Revenue
Recognition</i></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, <i>Revenue
from Contracts with Customers (Topic 606) (“ASU 2014-09”)</i>. The purpose of ASU 2014-09 is to clarify the principles
for recognizing revenue and create a common revenue standard for U.S. GAAP and International Financial Reporting Standards. ASU
2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts
for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance
contracts or lease contracts). The following subsequent Accounting Standards Updates either clarified or revised guidance set
forth in ASU 2014-09:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><p style="margin-top: 0; margin-bottom: 0"><font style="font: 10pt Times New Roman, Times, Serif">In
August 2015, the FASB issued Accounting Standards Update 2015-14, <i>Revenue from Contracts with Customers (Topic 606):
Deferral of the Effective Date (“ASU 2015-14”)</i>. ASU 2015-14 deferred the effective date of ASU 2014-09. The
guidance in ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 for public business
entities and for all other entities subsequent to December 15, 2018, including interim reporting periods within that reporting
period.</font> The Company has adopted the new standard in the first quarter of 2019.</p>
<p style="margin-top: 0; margin-bottom: 0"></p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In March 2016, the
FASB issued Accounting Standards Update 2016-08, <i>Revenue from Contracts with Customers (Topic 606): Principal versus Agent
Considerations (Reporting Revenues Gross versus Net) (“ASU 2016-08”)</i>. The purpose of ASU 2016-08 is to clarify
the implementation of revenue recognition guidance for principal versus agent considerations.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In April 2016, the
FASB issued Accounting Standards Update 2016-10, <i>Revenue from Contracts with Customers (Topic 606): Identifying Performance
Obligations and Licensing (“ASU 2016-10”)</i>. The purpose of ASU 2016-10 is to clarify certain aspects of identifying
performance obligations and licensing implementation guidance.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In May 2016, the
FASB issued Accounting Standards Update 2016-12, <i>Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements
and Practical Expedients (“ASU 2016-12”).</i> The purpose of ASU 2016-12 is to address certain narrow aspects
of Accounting Standards Codification (“ASC”) Topic 606 including assessing collectability, presentation of sales
taxes, noncash considerations, contract modifications and completed contracts at transition.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif"> </font></td>
<td style="width: 24px"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In December 2016,
the FASB issued Accounting Standards Update 2016-20, <i>Technical Corrections and Improvements to Topic 606, Revenue from
Contracts with Customers (“ASU 2016-20”). </i>The purpose of ASU 2016-20 is to amend certain narrow aspects of
the guidance issued in ASU 2014-09 related to the disclosure of performance obligations, as well as other amendments related
to loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In March 2016, the FASB issued Accounting
Standards Update 2016-04, <i>Liabilities-Extinguishments of Liabilities (Subtopic 405-20)</i>. This amendment provides a narrow
scope exception to Liabilities-Extinguishment of Liabilities (Subtopic 405-20) that requires breakage for those liabilities to
be accounted for in accordance with the breakage guidance in Accounting Standards Update 2014-09, <i>Revenue from Contracts with
Customers (Topic 606)</i>. Under the new guidance, if an entity expects to be entitled to a breakage amount for a liability resulting
from the sale of a prepaid stored-value product, the entity shall derecognize the amount related to the expected breakage in proportion
to the pattern of rights expected to be exercised by the product holder only to the extent that it is probable that a significant
reversal of the recognized breakage amount will not subsequently occur. If an entity does not expect to be entitled to a breakage
amount for a prepaid stored-value product, the entity shall derecognize the amount related to the breakage when the likelihood
of the product holder exercising its remaining rights becomes remote. The Accounting Standards Update is effective for public
business entities for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within
those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning
after December 15, 2018. The Company has adopted the new standard in the first quarter of 2019.</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">2019 – 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">22,330</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>2020 – 2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,144</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>2021 – 2022</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,513</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>2022 – 2023</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,434</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>2023 – 2024</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,583</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">336,684</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">467,688</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<br /> March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Pre-tax book loss</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(14,936</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(21,739</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Less: net loss prior to the Organizational Transactions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,442</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Less: net loss attributable to non-controlling interests</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,632</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">15,385</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Net loss attributable to IPIC before income taxes</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(9,304</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(1,912</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Income taxes at U.S. federal statutory rate</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(1,954</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(402</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">State and local income taxes, net of federal benefit</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(454</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(64</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Increase in valuation allowance</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left; border-bottom: Black 1.5pt solid"> </td><td style="text-align: right; border-bottom: Black 1.5pt solid">2,422</td><td style="text-align: left; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left; border-bottom: Black 1.5pt solid"> </td><td style="text-align: right; border-bottom: Black 1.5pt solid">488</td><td style="text-align: left; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Income tax expense</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">13</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">22</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-bottom: 1.5pt"><b> </b></td><td style="padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><b>Three Months Ended<br />
March <br />
2019</b></td><td style="padding-bottom: 1.5pt"><b> </b></td><td style="padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><b>February 1,<br />
2018<br />
Through<br />
March 31,<br />
2018</b></td><td style="padding-bottom: 1.5pt"><b> </b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Numerator:</td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 4pt">Net loss attributable to iPic Entertainment Inc. – Actual Dollars</td><td style="width: 1%; font-weight: bold; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; font-weight: bold; text-align: right">(9,305,403</td><td style="width: 1%; padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="width: 1%; font-weight: bold; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; font-weight: bold; text-align: right">(1,934,412</td><td style="width: 1%; padding-bottom: 4pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold">Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 9pt">Class A Common Stock</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,144,133</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">818,237</td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Restricted Stock Units</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">221,339</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">317,200</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Weighted-average Class A common shares outstanding for the period ended March 31, 2019</td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">7,365,472</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,135,437</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Net loss per Class A common share — basic and diluted</td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(1.26</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(1.70</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><i>Principles of Consolidation and Basis of Presentation</i></b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying (a) unaudited
condensed  consolidated balance sheet as of December 31, 2018, which has been derived from audited financial statements
that included explanatory going concern language in the independent registered public accounting firm’s report
accompanying those statements, and (b) the unaudited interim condensed consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in
accordance with the instructions to Form 10–Q. Accordingly, they do not include all of the information and
footnotes required by GAAP for complete consolidated financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the opinion of management, the accompanying
unaudited interim condensed consolidated financial statements reflect all normal and recurring adjustments that are necessary for
the fair presentation of the financial position of the Company as of March 31, 2019, the results of operations for the three month
period ended March 31, 2019 and 2018 and the cash flows for the three month periods ended March 31, 2019 and 2018, and should be
read in conjunction with the Company’s Annual Report on Form 10–K for the year ended December 31, 2018.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> <font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All
significant intercompany balances and transactions have been eliminated in consolidation.</font></p>
2512000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
5 — DEFICIT</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Incentive
stock options</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following is a summary of the Company’s Non-Qualified Options (as defined by Section 422 of the Internal Revenue Code of
1986, “Options”) activity:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Options</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Weighted Average</b></font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif"><b>Grant Date Fair Value Per Option</b> </font></p></td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Weighted Average Exercise Price per Option</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 64%; font-weight: bold">Outstanding - December 31, 2018</td><td style="width: 1%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 9%; font-weight: bold; text-align: right">1,040,424</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 1%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-weight: bold; text-align: right">4.31</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 1%; font-weight: bold"> </td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td><td style="width: 9%; font-weight: bold; text-align: right">16.80</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold">Exercisable - December 31, 2018</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">346,749</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">3.77</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">14.15</td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Granted</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Exercised</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Forfeited/Cancelled</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,526</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">4.24</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">16.46</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold; padding-bottom: 4pt">Outstanding – March 31, 2019</td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,037,898</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4.31</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">16.82</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; padding-bottom: 4pt">Exercisable – March 31, 2019</td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">343,598</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">3.77</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">14.17</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At March 31, 2019, the total intrinsic
value of the Options outstanding and exercisable was $0. As of March 31, 2019, the weighted average remaining contractual term
of Options outstanding was 9 years.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A
total of 142,898 Options were vested as of March 31, 2019.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b><i> </i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company recognized an aggregate of $266 and $322 in compensation expense during the three months ended March 31, 2019 and
2018, respectively, related to the Options. At March 31, 2019, unrecognized stock-based compensation was $2,984 for the
Options, which is expected to be recognized over a weighted average remaining life of approximately 2.38 years.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">     </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Restricted
stock units</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On
December 6, 2017 IPIC granted 483,864 Restricted Stock Units (“RSUs”) to our named executive officers and certain
other employees. The awards contained no future service requirement and fully vested when the IPO occurred. Therefore, on February
1, 2018, the Company recognized compensation expense related to these RSUs of $8,235. The average grant date fair value of the
RSUs was $17.02 per unit. At March 31, 2019 there was no unrecognized compensation costs related to the RSUs.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
RSUs will remain outstanding until the issuance of Class A shares on the different settlement dates. On May 15, 2018 247,755 of
the RSUs were exchanged for Class A shares. On June 29, 2018 14,770 of the RSUs were exchanged for Class A shares. The remaining
221,339 RSUs will be exchanged for Class A shares on May 15, 2019.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Stock
issuance</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In
accordance with the Holdings LLC Agreement, on July 12, 2018, each of Village Roadshow, Teachers’ Retirement System of Alabama
and Employees’ Retirement System of Alabama assigned 100% of its respective membership units of Holdings to IPIC in exchange
for a corresponding number of shares of IPIC’s Class A Common Stock (2,801,433 shares, 1,876,960 shares and 924,473 shares
of Class A Common Stock, respectively) (the “Exchange”). As part of the Exchange and in accordance with IPIC’s
Amended and Restated Certificate of Incorporation, each such investor’s Class B common stock were canceled.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
7 — INCOME TAXES</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<br /> March 31,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Pre-tax book loss</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(14,936</td><td style="width: 1%; text-align: left">)</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">(21,739</td><td style="width: 1%; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Less: net loss prior to the Organizational Transactions</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">4,442</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt">Less: net loss attributable to non-controlling interests</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">5,632</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">15,385</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Net loss attributable to IPIC before income taxes</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(9,304</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(1,912</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: right"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Income taxes at U.S. federal statutory rate</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(1,954</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(402</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">State and local income taxes, net of federal benefit</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(454</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(64</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Increase in valuation allowance</td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left; border-bottom: Black 1.5pt solid"> </td><td style="text-align: right; border-bottom: Black 1.5pt solid">2,422</td><td style="text-align: left; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="text-align: left; border-bottom: Black 1.5pt solid"> </td><td style="text-align: right; border-bottom: Black 1.5pt solid">488</td><td style="text-align: left; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Income tax expense</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">13</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">22</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">We
file U.S federal and state income tax returns in jurisdictions with varying statutes of limitations. As of March 31,
2019, the 2015 through 2018 tax years generally remain subject to examination by federal and most state tax authorities. The use
of net operating losses generated in tax years prior to 2013 may also subject returns for those years to examination. The Company
currently does not have any income tax audits in process.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">As
of December 31, 2018, our federal and state net operating loss carryforwards for income tax purposes were $13,841. Due to
the Tax Cuts and Jobs Act of 2017, the Federal operating loss carryforwards generated in 2018 do not expire.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">We evaluate the realizability of our deferred tax assets on a quarterly basis and establish valuation allowances
when it is more likely than not that all or a portion of a deferred tax asset may not be realized. As of March 31, 2019, we
concluded, based on the weight of all available positive and negative evidence, that all our deferred tax assets do not meet the
more likely than not threshold to be realized. As such, a full valuation allowance was recognized of $12,865 The net change in
valuation allowance for the quarter ending March 2019 was an increase of $2,422.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Pursuant
to our election under Section 754 of the Internal Revenue Code (the “Code”), we expect to obtain an increase in our
share of the tax basis in the net assets of Holdings when LLC Interests are redeemed or exchanged by the non-controlling interest
holders and other qualifying transactions. We intend to treat any redemptions and exchanges of LLC Interests by the non-controlling
interest holders as direct purchases of LLC Interests for U.S. federal income tax purposes. These increases in tax basis may reduce
the amounts that we would otherwise pay in the future to various tax authorities. They may also decrease gains (or increase losses)
on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>NOTE 8 — GOING CONCERN AND MANAGEMENT’S PLAN
REGARDING FUTURE OPERATIONS</b></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company incurred a net loss for the three months ended March 31, 2019 of $14,936. In addition, the Company’s liabilities
exceeded its assets by $133,891 and the Company had a working capital deficit of $15,026 at March 31, 2019.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company had cash and cash equivalents of $3,562 at March 31, 2019 and used $1,341 in cash for operating activities for the three
months ended March 31, 2019.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company’s
ability to continue as a going-concern is dependent on refinancing of existing debt or obtaining additional equity. The main sources
of funding are expected to be the RSA Non-revolving Credit Facility and new financing.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Management
believes that growth into new locations is critical to the Company’s ability to achieve profitability and generate cash
from operating activities. Management considers the continued availability of the Non-revolving Credit Facility and obtaining
new financing to be significant to its ability to satisfy its payment obligations as they become due, including but not limited
to, planned remodeling of existing locations, construction of new locations and funding operations.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To meet our capital and operating needs,
the Company is considering multiple alternatives, including, but not limited to, equity financings, debt financings and other funding
transactions, as well as restructuring of its outstanding indebtedness and operational changes to increase revenues and contain
costs. No assurance can be given that any future financing, funding transaction or restructuring will be available or, if available,
that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may
contain undue restrictions on operations in the case of debt financing or cause substantial dilution for stockholders in the case
of equity financing.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, we are required to comply
with Securities and Exchange Commission and NASDAQ rules and requirements when raising capital, which may make it more difficult
for us to raise significant amounts of capital. If we cannot raise needed funds, we might be forced to make substantial reductions
in our operating expenses, which could adversely affect our ability to implement our business plan and ultimately our viability
as a company.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management has determined that these conditions
and events raise substantial doubt about the Company’s ability to continue as a going concern. These condensed financial
statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts
and classification of liabilities that might result from this uncertainty.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
9 — NET LOSS PER SHARE</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company computed net loss per share only for the period our common stock was outstanding during 2018, referred to as the “Post-IPO
Period”. We have defined the Post-IPO Period as February 1, 2018, the date our shares began trading on the NASDAQ, through
March 31, 2018, or 59 days of activity for the reporting period ended March 31, 2018. Basic net loss per share is computed by
dividing the net loss attributable to Class A Common Stockholders for the Post-IPO Period by the weighted-average number of shares
of Class A Common Stock outstanding during the Post-IPO Period. The weighted average number of Restricted Stock Units to be settled
in shares of Class A Common Stock became fully vested on the IPO date. The Company analyzed the calculation of earnings per unit
for periods prior to the IPO and determined that it resulted in values that would not be meaningful to the users of these unaudited
condensed consolidated financial statements. Therefore, earnings per unit information has not been presented for periods prior
to the IPO on February 1, 2018.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">  </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Diluted
net loss per share is computed by adjusting the net loss available to Class A Common Stockholders and the weighted-average number
of shares of Class A Common Stock outstanding to give effect to potentially dilutive securities. Shares of Class B Common Stock
issued do not participate in earnings of the Company. As a result, the shares of Class B Common Stock are not considered participating
securities and are not included in the weighted-average shares outstanding for purposes of computing net loss per share. Class
B Common Stockholders have the option to exchange an equivalent number of LLC Interests of Holdings for Class A Common Stock of
IPIC maintaining a one-to-one ratio. Therefore, the equivalent number of shares of Class A Common Stock could be issuable in exchange
for the Class B Common Stockholders’ LLC Interests of Holdings.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Basic
and diluted loss per share/unit for the period ended March 31, 2019:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-bottom: 1.5pt"><b> </b></td><td style="padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><b>Three Months Ended<br />
March <br />
2019</b></td><td style="padding-bottom: 1.5pt"><b> </b></td><td style="padding-bottom: 1.5pt"><b> </b></td>
<td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid"><b>February 1,<br />
2018<br />
Through<br />
March 31,<br />
2018</b></td><td style="padding-bottom: 1.5pt"><b> </b></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Numerator:</td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: center"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 4pt">Net loss attributable to iPic Entertainment Inc. – Actual Dollars</td><td style="width: 1%; font-weight: bold; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; font-weight: bold; text-align: right">(9,305,403</td><td style="width: 1%; padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="width: 1%; font-weight: bold; padding-bottom: 4pt"> </td>
<td style="width: 1%; border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="width: 9%; border-bottom: Black 4pt double; font-weight: bold; text-align: right">(1,934,412</td><td style="width: 1%; padding-bottom: 4pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-weight: bold">Denominator:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 9pt">Class A Common Stock</td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">7,144,133</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">818,237</td><td style="font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Restricted Stock Units</td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">221,339</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">317,200</td><td style="padding-bottom: 1.5pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 4pt">Weighted-average Class A common shares outstanding for the period ended March 31, 2019</td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">7,365,472</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left"> </td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,135,437</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; text-align: left; padding-bottom: 4pt">Net loss per Class A common share — basic and diluted</td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(1.26</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td><td style="font-weight: bold; padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(1.70</td><td style="padding-bottom: 4pt; font-weight: bold; text-align: left">)</td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company has issued potentially dilutive instruments in the form of our Non-Qualified Options granted to our employees and directors.
In addition, warrants were issued to selling agents upon completion of the IPO for services rendered. The Company did not include
any of these instruments in its calculation of diluted net loss per share during the period because to include them would be anti-dilutive
due to the Company’s loss from operations during the period.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
following table summarizes the types of potentially dilutive securities outstanding as of March 31, 2019:</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">March 31,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%; text-align: justify">LLC Interests</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">4,323,755</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Non-Qualified Options</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,037,898</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1.5pt">Selling Agents’ Warrants</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">18,005</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 4pt">Total</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">5,379,658</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
1500000
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE
6 — COMMITMENTS</b>  <b>AND CONTINGENCIES</b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Operating
Leases</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">At
March 31, 2019, future minimum payments under non-cancelable operating leases are as follows.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">2019 – 2020</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">22,330</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>2020 – 2021</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">24,144</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>2021 – 2022</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,513</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>2022 – 2023</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,434</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>2023 – 2024</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">28,583</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Thereafter</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">336,684</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">467,688</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Certain
operating leases require contingent rental payments based on a percentage of sales in excess of stipulated amounts. Rent expense
during the three months ended March 31, 2019 was as follows: </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2018</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; text-indent: -10pt; padding-left: 10pt">Minimum rentals</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,114</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,136</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; text-indent: -10pt; padding-left: 10pt">Contingent rentals</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,114</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">4,136</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b><i>Litigation</i></b></font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company is exposed to litigation in the normal course of business.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">From
time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of
business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise
from time to time that may harm the Company’s business.</font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman,serif; margin: 0pt 0; text-align: justify">The Company currently is a defendant in a class
action lawsuit captioned Mary Ryan and Johanna Nielson v. IPIC-Gold Class Entertainment, LLC, Case # BC 688633, which was filed
in Superior Court of the State of California, County of Los Angeles, on December 29, 2017. This lawsuit asserts failure to pay
minimum wage, pay overtime wages, provide meal breaks and rest periods, and provide accurate itemized wage statements with respect
to certain workers. On February 6, 2019, the parties reached a preliminary agreement to settle the lawsuit for $1,500. The parties
are in the process of negotiating a settlement agreement for submission to the court for preliminary approval of the settlement.
The $1,500 expense was recorded at December 31, 2018 and still remains outstanding as of March 31, 2019.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other
than the lawsuit described above in consultation with legal counsel, the Company is currently not aware of any legal proceedings or claims that it believes could
have, individually or in the aggregate, a material adverse effect on the business, financial condition, operating results or cash
flows. However, lawsuits or any other legal or administrative proceeding, regardless of the outcome, may result in diversion of
resources, including management’s time and attention.</font></p>
Basic and diluted net loss per Class A common share is applicable only for periods after the Company's IPO. See Note 11 "Net Loss per Share''.
Revenue recognized for period ending March 31, 2019, $2,512