The Company completed its initial SFAS No. 142 transitional impairment test of goodwill in April 2002, including an assessment of a valuation of the Nathan’s, Miami Subs and Roasters reporting units by an independent valuation consultant, and has recorded an impairment charge requiring the Company to write-off substantially all of the goodwill related to the acquisitions, trademarks and recipes as a cumulative effect of accounting change in the first quarter of fiscal 2003. The fair value was determined through the combination of a present value analy- sis as well as prices of comparative businesses. The changes in the net carrying amount of goodwill, trademarks and recipes recorded in the first quarter of fiscal 2003 are as follows: The table below presents amortized and unamortized intangible assets as of March 28, 2004 and March 30, 2003:  The following table provides a reconciliation of the reported net income (loss) and net income (loss) per share for the fiscal years ended March 28, 2004, March 30, 2003 and March 31, 2002, adjusted as though SFAS No. 142 had been effective for all periods:  Goodwill Trademarks Recipes Total Balance as of April 1, 2002 $ 11,083 $ 2,242 $ 30 $ 13,355 Cumulative effect of accounting change for goodwill and other intangible assets (10,988) (2,174) (30) (13,192) Balance as of March 30, 2003 $ 95 $ 68 $ — $ 163 March 28, 2004 March 30, 2003 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount Amortized intangible assets: Royalty streams $4,259 $(1,269) $2,990 $4,259 $(1,008) $3,251 Favorable leases 285 (285) — 285 (285) — Other 6 (1) 5 16 (16) — $4,550 $(1,555) $2,995 $4,560 $(1,309) $3,251 Unamortized intangible assets: Trademarks, tradenames and recipes 68 68 $3,063 $3,319 Goodwill $ 95 $ 95 2004 2003 2002 Reported net income (loss) before cumulative effect of change in accounting principle $1,894 $ (1,630) $1,249 Add back discontinued amortization expense  — — 555 Adjusted net income (loss) before cumulative effect of change in accounting principle 1,894 (1,630) 1,804 Cumulative effect of change in accounting principle — (12,338) — Adjusted net income (loss) $1,894 $(13,968) $1,804 Reported basic net income (loss) per common share before cumulative effect of change in accounting principle $ .36 $ (.28) .18 Effect of discontinued amortization expense — — $ .08 Adjusted basic net income (loss) per common share before cumulative effect of change in accounting principle .36 (.28) .26 Cumulative effect of change in accounting principle — (2.06) — Adjusted basic net income (loss) per common share $ .36 $ (2.34) $ .26 Reported diluted net income (loss) per common share before cumulative effect of change in accounting principle $ .33 $ (.28) $ .18 Effect of discontinued amortization expense — — .07 Adjusted diluted net income (loss) per common share before cumulative effect of change in accounting principle .33 (.28) .25 Cumulative effect of change in accounting principle — (2.06) — Adjusted diluted net income (loss) per common share $ .33 $ (2.34) $ .25 2004 Annual Report  Nathan’s Famous, Inc. & Subsidiaries page nineteen