Kona Grill (KONA) 10-Q 4 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Entity Registrant Name	KONA GRILL INC
Entity Central Index Key	1,265,572
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		11,276,853
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 27,532	$ 36,578
Short-term investments	178	178
Receivables	1,640	387
Other current assets	1,985	2,122
Total current assets	31,335	39,265
Other assets	1,200	1,171
Property, plant and equipment, net	66,593	53,934
Total assets	99,128	94,370
Current liabilities:
Accounts payable	2,680	3,205
Accrued expenses	11,846	9,042
Total current liabilities	14,526	12,247
Deferred rent	18,996	16,697
Total liabilities	$ 33,522	$ 28,944
Stockholders’ equity:
Preferred stock, $0.01 par value, 2,000,000 shares authorized, none issued
Common stock, $0.01 par value, 30,000,000 shares authorized, 11,393,053 shares issued and 11,276,853 shares outstanding at June 30, 2015; 11,325,338 shares issued and 11,209,138 shares outstanding at December 31, 2014	$ 114	$ 113
Additional paid-in capital	97,619	96,422
Accumulated deficit	(31,127)	(30,109)
Treasury stock, at cost, 116,200 shares at June 30, 2015 and December 31, 2014	(1,000)	(1,000)
Total stockholders’ equity	65,606	65,426
Total liabilities and stockholders’ equity	$ 99,128	$ 94,370

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	30,000,000	15,000,000
Common stock, shares issued (in shares)	11,393,053	11,325,338
Common stock, shares outstanding (in shares)	11,276,853	11,209,138
Treasury stock, shares (in shares)	116,200	116,200

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restaurant sales	$ 36,225,000	$ 29,886,000	$ 69,032,000	$ 57,502,000
Costs and expenses:
Cost of sales	9,678,000	8,210,000	18,740,000	15,720,000
Labor	12,396,000	9,900,000	23,784,000	19,326,000
Occupancy	2,501,000	2,001,000	4,858,000	3,844,000
Restaurant operating expenses	4,978,000	4,023,000	9,586,000	7,871,000
General and administrative	3,143,000	2,443,000	6,426,000	5,019,000
Preopening expense	1,106,000	509,000	1,923,000	899,000
Depreciation and amortization	2,290,000	$ 1,717,000	4,474,000	$ 3,404,000
Other expenses	161,000		161,000
Total costs and expenses	36,253,000	$ 28,803,000	69,952,000	$ 56,083,000
Income (loss) from operations	(28,000)	1,083,000	(920,000)	1,419,000
Interest expense, net	46,000	64,000	91,000	124,000
Income (loss) before income taxes	(74,000)	$ 1,019,000	(1,011,000)	1,295,000
Income tax expense	19,000		7,000	25,000
Net income (loss)	$ (93,000)	$ 1,019,000	$ (1,018,000)	$ 1,270,000
Net income (loss) per share:
Basic (in dollars per share)	$ (0.01)	$ 0.12	$ (0.09)	$ 0.15
Diluted (in dollars per share)	$ (0.01)	$ 0.11	$ (0.09)	$ 0.14
Denominator:
Basic (in shares)	11,271	8,770	11,253	8,690
Diluted (in shares)	11,271	9,081	11,253	9,022
Comprehensive income (loss)	$ (93,000)	$ 1,019,000	$ (1,018,000)	$ 1,270,000

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net income (loss)	$ (1,018,000)	$ 1,270,000
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	4,474,000	3,404,000
Share-based Compensation	663,000	418,000
Amortization of Financing Costs	40,000	53,000
Change in operating assets and liabilities:
Receivables	(1,253,000)	241,000
Other current assets	137,000	(140,000)
Accounts payable	(469,000)	(493,000)
Accrued expenses	48,000	759,000
Deferred rent	2,299,000	2,552,000
Net cash provided by operating activities	4,921,000	8,064,000
Investing activities
Purchase of property and equipment	(14,433,000)	(9,536,000)
Change in other assets	(69,000)	(40,000)
Net cash used in investing activities	$ (14,502,000)	(9,576,000)
Financing activities
Debt repayments		(3,500,000)
Proceeds from issuance of common stock, net of issuance costs		41,085,000
Proceeds from issuance of common stock under the Employee Stock Purchase Plan and exercise of stock options	$ 535,000	66,000
Net cash provided by financing activities	535,000	37,651,000
Net increase (decrease) in cash and cash equivalents	(9,046,000)	36,139,000
Cash and cash equivalents at the beginning of the period	36,578,000	5,881,000
Cash and cash equivalents at the end of the period	27,532,000	42,020,000
Supplemental disclosure of cash flow information
Cash paid for interest, net of capitalized interest	54,000	99,000
Cash paid for income taxes, net of refunds	32,000	110,000
Noncash investing activities
Accounts payable and accruals related to property and equipment	$ 4,760,000	$ 1,218,000

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	1 . Basis of Presentation Kona Grill, Inc., including its wholly-owned subsidiaries, (referred to herein as the “Company” or “we,” “us,” and “our”) develops, owns and operates upscale casual dining restaurants under the name “Kona Grill.” Our restaurants feature a diverse selection of American favorites and award-winning sushi that are prepared fresh daily. As of June 30, 2015, we owned and operated 33 restaurants in 19 states and Puerto Rico. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. Accordingly, these financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014. The Company has evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through the day the financial statements are issued. In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This guidance requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying value of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by this new guidance. We do not expect the adoption of this guidance, effective for us in the first quarter of 2016, to have a material impact on our consolidated financial statements, although it will require retrospective application reducing the amount of debt reflected on our historical consolidated balance sheets .

Note 2 - Fair Value Measurement

Note 2 - Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Fair Value Disclosures [Text Block]	2 . Fair Value Measurements The carrying value for certain of our financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximates fair value because of their short-term nature. Our investments represent certificates of deposit and are considered available-for-sale securities that are valued using market observable inputs (Level 2).

Note 3 - Net Income (Loss) Per

Note 3 - Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	3. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share includes the dilutive effect of potential stock option exercises, calculated using the treasury stock method. The following table sets forth the computation of basic and diluted net income (loss) per share: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands, except per share data) Numerator: Net income (loss) $ (93 ) $ 1,019 $ (1,018 ) $ 1,270 Denominator: Weighted average shares — Basic 11,271 8,770 11,253 8,690 Effect of dilutive stock options — 311 — 332 Weighted average shares — Diluted 11,271 9,081 11,253 9,022 Net income (loss) per share: Basic $ (0.01 ) $ 0.12 $ (0.09 ) $ 0.15 Diluted $ (0.01 ) $ 0.11 $ (0.09 ) $ 0.14 Stock options outstanding that were not included in the dilutive earnings per share calculation because the effect would have been anti-dilutive were 357,000 and none, respectively, for the three months ended June 30, 2015 and 2014, and 285,000 and 178,000, respectively, for the six months ended June 30, 2015 and 2014.

Note 4 - Property and Equipment

Note 4 - Property and Equipment	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	4. Property and Equipment Property and equipment consisted of the following (in thousands): June 30 , 201 5 December 31, 201 4 Leasehold improvements $ 78,067 $ 69,643 Equipment 21,769 19,378 Furniture and fixtures 8,315 6,950 108,151 95,971 Less accumulated depreciation and amortization (50,034 ) (46,860 ) 58,117 49,111 Construction in progress 8,476 4,823 Total property and equipment, net $ 66,593 $ 53,934

Note 5 - Accrued Expenses

Note 5 - Accrued Expenses	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	5. Accrued Expenses Accrued expenses consisted of the following (in thousands): June 30, December 31, 2015 20 14 Accrued payroll and benefits $ 3,584 $ 3,280 Accrued construction and remodel costs (1) 3,822 1,067 Gift card liability 1,499 1,961 Sales taxes 1,443 1,354 Accrued occupancy 435 399 Other 1,063 981 Total accrued expenses $ 11,846 $ 9,042 (1) Balance is attributable to property additions for our new restaurants and remodels.

Note 6 - Debt and Credit Agreem

Note 6 - Debt and Credit Agreements	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Debt Disclosure [Text Block]	6. Debt and Credit Agreements On April 19, 2013, we entered into a Credit Agreement for a $20 million revolving line of credit maturing on April 19, 2017 with KeyBank National Association (“KeyBank”) and Stearns Bank National Association (“Stearns Bank”). On November 7, 2014, we entered into an Amended and Restated Credit Agreement (the “Amended Credit Agreement”) with KeyBank to (i) increase the credit facility from $20 million to $35 million, and (ii) extend the maturity date of the credit facility to November 7, 2019. The credit facility is secured by our personal property and assets. Certain of our wholly owned subsidiaries have also guaranteed the credit facility. The entire $35 million under the credit facility was available at June 30, 2015. The interest rate under the Amended Credit Agreement is KeyBank’s prime rate or LIBOR, at our option, plus an applicable margin depending on our leverage ratio. The LIBOR margins range from 1.5% to 2.5% and the base rate margins range from 0.5% to 1.5%. Payments on the credit facility are interest only, payable quarterly with respect to each base rate loan and at varying times with respect to LIBOR rate loans, with outstanding principal and interest due at maturity. Prepayment is permitted at any time without penalty, subject to certain restrictions on the order of repayment or prepayment. We are obligated to pay a commitment fee at an annual rate of 0.175% to 0.350%, depending on our leverage ratio, times the unused total revolving commitment of the credit facility based on the average daily amount outstanding under the credit facility for the previous quarter. The commitment fee is payable quarterly in arrears. During the three months ended June 30, 2015 and 2014, we incurred gross interest expense of $49,000 and $64,000, consisting primarily of loan fee amortization of $21,000 and $26,000, respectively, and commitment fees of $22,000 and $21,000, respectively. During the six months ended June 30, 2015 and 2014, we incurred gross interest expense of $94,000 and $126,000, consisting primarily of loan fee amortization of $40,000 and $53,000, respectively, and commitment fees of $44,000 and $41,000, respectively. We capitalized $29,000 of interest costs during the six months ended June 30, 2014. Unamortized loan fees of $363,000 at June 30, 2015 are being amortized over the life of the credit facility and are included in other assets in the consolidated balance sheet. The credit facility also requires us to comply with certain covenants, including (a) a fixed charge coverage ratio of not less than 1.50 and (b) a maximum leverage ratio of 5.0 to 1.0 through March 31, 2016 and 4.75 to 1.0 from April 1, 2016 through the maturity date. We were in compliance with all covenants at June 30, 2015.

Note 7 - Income Taxes

Note 7 - Income Taxes	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	7. Income Taxes We recorded an income tax expense of $19,000 during the three months ended June 30, 2015 associated with state income tax for which no state net operating loss carryforwards or other credit exist. We recognized no income tax expense during the three months ended June 30, 2014 based upon the projected net operating loss position resulting from our tax planning strategies conducted in 2014. Income tax expense of $7,000 and $25,000 for the six months ended June 30, 2015 and 2014 primarily related to state income tax expense for which no state net operating loss carryforwards or other credits exist. Income tax expense for the six months ended June 30, 2015 also includes refunds primarily associated with prior year federal income tax. At June 30, 2015, we had approximately $17 million in deferred tax assets primarily related to state net operating loss carryforwards and federal business tax credit carryforwards. We have a full valuation allowance for these carryforwards due to the uncertainty surrounding their future utilization. The realization of our deferred tax assets ultimately depends on the existence of sufficient taxable income in the appropriate taxing jurisdictions in future periods. We have analyzed, and will continue to analyze, the positive and negative evidence to support our conclusion regarding the appropriate amount of our valuation allowance. The valuation allowance could be reduced in a subsequent period if there is sufficient evidence to support a conclusion that it is more likely than not that the state net operating loss carryforwards and/or the federal business tax credit carryforwards will be realized. Future changes in our valuation allowance could have a material effect on our results of operations in the period recorded.

Note 8 - Stock-Based Compensati

Note 8 - Stock-Based Compensation	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	8. Stock-Based Compensation The fair value of stock options granted during the six months ended June 30, 2015 and 2014 was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Six Months Ended June 30, 2015 20 14 Expected volatility 40.7 % 36.9 % Risk-free interest rate 0.9 % 0.7 % Expected option life (in years) 3.0 2.9 Dividend yield 0.0 % 0.0 % Weighted average fair value per option granted $ 6.74 $ 4.13 The following table summarizes our stock option activity for the six months ended June 30, 2015: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding options at December 31, 2014 740,250 $ 10.66 Granted 362,868 23.49 Forfeited (15,400 ) 20.02 Exercised (66,450 ) 7.65 Outstanding options at June 30, 2015 1,021,268 $ 15.27 3.3 $ 5,668,000 Exercisable at June 30, 2015 347,463 $ 10.54 2.5 $ 3,162,000 We recognized stock-based compensation expense of $362,000 and $217,000 during the three months ended June 30, 2015 and 2014, respectively, and $663,000 and $418,000 during the six months ended June 30, 2015 and 2014, respectively. As of June 30, 2015, there was $2.6 million of unrecognized stock-based compensation expense related to unvested stock-based compensation awards, which is expected to be recognized over a weighted average period of 2.8 years. In April 2015, our shareholders approved an increase of 1.5 million common shares reserved for issuance under our 2012 Stock Award Plan. The total shares of common stock reserved for issuance were 3.7 million, of which 1.5 million shares were available for grant as of June 30, 2015.

Note 9 - Common Stock

Note 9 - Common Stock	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	9. Common Stock On April 30, 2015, our shareholders approved an amendment to our certificate of incorporation to increase the number of authorized shares of common stock from 15 million to 30 million. Stock Purchase and Retirement Program In May 2012, our Board of Directors authorized a stock repurchase and retirement program of up to $5,000,000 of our outstanding common stock. The authorization of the program does not have an expiration date and it does not require us to purchase a specific dollar amount of shares. This authorization may be modified, suspended or terminated at any time. The timing and number of shares purchased pursuant to the share purchase authorization are subject to a number of factors, including current market conditions, legal constraints and available cash. As of June 30, 2015, we repurchased and retired $3.2 million, or 387,109 shares under the 2012 authorization. We did not repurchase any shares during 2014 or 2015. Common Stock Offering On June 25, 2014, we completed a public offering of 2,645,000 shares of our common stock at an offering price of $18.50 per share. We sold an aggregate of 2,345,000 shares, of which 345,000 shares were sold pursuant to the underwriters’ exercise of their option to purchase additional shares. The remaining 300,000 shares were sold by certain selling stockholders. The aggregate net proceeds received for the offering totaled $40.9 million, reflecting gross proceeds of $43.4 million, less underwriting expenses of $2.2 million and other offering costs of $0.3 million. Net proceeds from the offering are being used for new unit expansion, capital expenditures and general corporate purposes.

Note 10 - Commitments and Conti

Note 10 - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	10. Commitments and Contingencies We are engaged in various legal actions, which arise in the ordinary course of our business. Although there can be no assurance as to the ultimate disposition of these matters, it is the opinion of our management, based upon the information available at this time, that the expected outcome of these matters, individually or in the aggregate, will not have a material adverse effect on the results of operations or financial condition of our company. On February 10, 2014, Kona Grill Macadamia, Inc., a wholly-owned subsidiary of the Company (“Macadamia”), filed a Motion to Set Aside Default Judgment in the Circuit Court of Jackson County, Kansas City Missouri relating to a default judgment of approximately $3.5 million entered on December 18, 2013 against Macadamia. The underlying personal injury claim, Frank Neal Goss v. Kona Macadamia, Inc. and Anthony DeAngelo, revolves around a fight that two alleged restaurant patrons had outside of the Company’s Kansas City restaurant on March 1, 2011, which is claimed to have resulted in physical injury to the plaintiff. Following the hearing held on April 3, 2014, the Circuit Court issued a written order on April 7, 2014 granting Macadamia’s Motion to Set Aside Default Judgment. The underlying personal injury case is proceeding in the Circuit Court. The court established a deadline of August 17, 2015 for summary judgment motions and scheduled the matter for trial in December 2015. We believe that we have a strong defense to the claim asserted by the plaintiff and insurance coverage for the claim.

Note 3 - Net Income (Loss) Pe16

Note 3 - Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands, except per share data) Numerator: Net income (loss) $ (93 ) $ 1,019 $ (1,018 ) $ 1,270 Denominator: Weighted average shares — Basic 11,271 8,770 11,253 8,690 Effect of dilutive stock options — 311 — 332 Weighted average shares — Diluted 11,271 9,081 11,253 9,022 Net income (loss) per share: Basic $ (0.01 ) $ 0.12 $ (0.09 ) $ 0.15 Diluted $ (0.01 ) $ 0.11 $ (0.09 ) $ 0.14

Note 4 - Property and Equipme17

Note 4 - Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Property, Plant and Equipment [Table Text Block]	June 30 , 201 5 December 31, 201 4 Leasehold improvements $ 78,067 $ 69,643 Equipment 21,769 19,378 Furniture and fixtures 8,315 6,950 108,151 95,971 Less accumulated depreciation and amortization (50,034 ) (46,860 ) 58,117 49,111 Construction in progress 8,476 4,823 Total property and equipment, net $ 66,593 $ 53,934

Note 5 - Accrued Expenses (Tabl

Note 5 - Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	June 30, December 31, 2015 20 14 Accrued payroll and benefits $ 3,584 $ 3,280 Accrued construction and remodel costs (1) 3,822 1,067 Gift card liability 1,499 1,961 Sales taxes 1,443 1,354 Accrued occupancy 435 399 Other 1,063 981 Total accrued expenses $ 11,846 $ 9,042

Note 8 - Stock-Based Compensa19

Note 8 - Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Six Months Ended June 30, 2015 20 14 Expected volatility 40.7 % 36.9 % Risk-free interest rate 0.9 % 0.7 % Expected option life (in years) 3.0 2.9 Dividend yield 0.0 % 0.0 % Weighted average fair value per option granted $ 6.74 $ 4.13
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding options at December 31, 2014 740,250 $ 10.66 Granted 362,868 23.49 Forfeited (15,400 ) 20.02 Exercised (66,450 ) 7.65 Outstanding options at June 30, 2015 1,021,268 $ 15.27 3.3 $ 5,668,000 Exercisable at June 30, 2015 347,463 $ 10.54 2.5 $ 3,162,000

Note 1 - Basis of Presentation

Note 1 - Basis of Presentation (Details Textual)	Jun. 30, 2015
Number of Restaurants	33
Number of States in which Entity Operates	19

Note 3 - Net Income (Loss) Pe21

Note 3 - Net Income (Loss) Per Share (Details Textual) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	357,000	0	285,000	178,000

Note 3 - Net Income (Loss) Pe22

Note 3 - Net Income (Loss) Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator:
Net income (loss)	$ (93)	$ 1,019	$ (1,018)	$ 1,270
Denominator:
Weighted average shares — Basic (in shares)	11,271	8,770	11,253	8,690
Effect of dilutive stock options (in shares)		311		332
Weighted average shares — Diluted (in shares)	11,271	9,081	11,253	9,022
Net income (loss) per share:
Basic (in dollars per share)	$ (0.01)	$ 0.12	$ (0.09)	$ 0.15
Diluted (in dollars per share)	$ (0.01)	$ 0.11	$ (0.09)	$ 0.14

Note 4 - Property and Equipme23

Note 4 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Leasehold Improvements [Member]
Property, plant and equipment gross	$ 78,067	$ 69,643
Equipment [Member]
Property, plant and equipment gross	21,769	19,378
Furniture and Fixtures [Member]
Property, plant and equipment gross	8,315	6,950
Excluding Construction In Progress [Member]
Property, plant and equipment, net	58,117	49,111
Construction in Progress [Member]
Property, plant and equipment gross	8,476	4,823
Property, plant and equipment gross	108,151	95,971
Less accumulated depreciation and amortization	(50,034)	(46,860)
Property, plant and equipment, net	$ 66,593	$ 53,934

Note 5 - Accrued Expenses - Acc

Note 5 - Accrued Expenses - Accrued Expenses (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Accrued payroll and benefits		$ 3,584	$ 3,280
Accrued construction and remodel costs	[1]	3,822	1,067
Gift card liability		1,499	1,961
Sales taxes		1,443	1,354
Accrued occupancy		435	399
Other		1,063	981
Total accrued expenses		$ 11,846	$ 9,042
[1]	Balance is attributable to property additions for our new restaurants and remodels.

Note 6 - Debt and Credit Agre25

Note 6 - Debt and Credit Agreements (Details Textual)	Nov. 07, 2014USD ($)	Apr. 19, 2013USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Revolving Credit Facility [Member] | Key Bank [Member]
Line of Credit Facility, Expiration Date	Nov. 7, 2019	Apr. 19, 2017
Line of Credit Facility, Maximum Borrowing Capacity	$ 35,000,000	$ 20,000,000
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate					1.50%
Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate					0.50%
Revolving Credit Facility [Member] | Minimum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage					0.175%
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate					2.50%
Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate					1.50%
Revolving Credit Facility [Member] | Maximum [Member] | Through March 31, 2016 [Member]
Maximum Leverage Ratio			5		5
Revolving Credit Facility [Member] | Maximum [Member] | From April 1, 2016 Through the Maturity Date [Member]
Maximum Leverage Ratio			4.75		4.75
Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage					0.35%
Revolving Credit Facility [Member]
Fixed Charge Coverage Ratio Minimum			1.5		1.5
Interest Expense, Debt			$ 49,000	$ 64,000	$ 94,000	$ 126,000
Amortization of Financing Costs			21,000	26,000	40,000	53,000
Line of Credit Facility, Commitment Fee Amount			22,000	$ 21,000	44,000	41,000
Interest Costs Capitalized						$ 29,000
Unamortized Debt Issuance Expense			$ 363,000		$ 363,000

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Expense (Benefit)	$ 19,000		$ 7,000	$ 25,000
Deferred Tax Assets, Gross	$ 17,000,000		$ 17,000,000

Note 8 - Stock-Based Compensa27

Note 8 - Stock-Based Compensation (Details Textual) - USD ($) shares in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation		$ 362,000	$ 217,000	$ 663,000	$ 418,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 2,600,000		$ 2,600,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				2 years 292 days
Common Stock, Increase (Decrease) in Capital Shares Reserved for Future Issuance	1.5
Common Stock, Capital Shares Reserved for Future Issuance		3.7		3.7
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		1.5		1.5

Note 8 - Stock-Based Compensa28

Note 8 - Stock-Based Compensation - Stock Options Fair Value Assumptions (Details) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Expected volatility	40.70%	36.90%
Risk-free interest rate	0.90%	0.70%
Expected option life (in years)	3 years	2 years 328 days
Dividend yield	0.00%	0.00%
Weighted average fair value per option granted (in dollars per share)	$ 6.74	$ 4.13

Note 8 - Stock-Based Compensa29

Note 8 - Stock-Based Compensation - Stock Option Activity (Details) - Jun. 30, 2015 - USD ($)	Total
Outstanding options at December 31, 2014 (in shares)	740,250
Outstanding options at December 31, 2014 (in dollars per share)	$ 10.66
Granted (in shares)	362,868
Granted (in dollars per share)	$ 23.49
Forfeited (in shares)	(15,400)
Forfeited (in dollars per share)	$ 20.02
Exercised (in shares)	(66,450)
Exercised (in dollars per share)	$ 7.65
Outstanding options at June 30, 2015 (in shares)	1,021,268
Outstanding options at June 30, 2015 (in dollars per share)	$ 15.27
Outstanding options at June 30, 2015	3 years 109 days
Outstanding options at June 30, 2015	$ 5,668,000
Exercisable at June 30, 2015 (in shares)	347,463
Exercisable at June 30, 2015 (in dollars per share)	$ 10.54
Exercisable at June 30, 2015	2 years 182 days
Exercisable at June 30, 2015	$ 3,162,000

Note 9 - Common Stock (Details

Note 9 - Common Stock (Details Textual) - USD ($)	Jun. 25, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Jun. 30, 2015	Apr. 30, 2015	Apr. 29, 2015	May. 31, 2012
Common Stock [Member] | Sold by the Company [Member] | Option on Securities [Member]
Stock Issued During Period, Shares, New Issues	345,000
Common Stock [Member] | Sold by the Company [Member]
Stock Issued During Period, Shares, New Issues	2,345,000
Stock Issued During Period, Shares Sold by Stockholders	300,000
Common Stock [Member]
Stock Issued During Period, Shares, New Issues and Shares Sold by Stockholders	2,645,000
Sale of Stock, Price Per Share	$ 18.50
Underwriting Expenses [Member]
Payments of Stock Issuance Costs	$ 2,200,000
Other Offering Costs [Member]
Payments of Stock Issuance Costs	300,000
Stock Repurchased and Retired During Period, Shares		0		0	387,109
Common Stock, Shares Authorized		30,000,000		15,000,000	30,000,000	30,000,000	15,000,000
Stock Repurchase Program, Authorized Amount								$ 5,000,000
Stock Repurchased and Retired During Period, Value		$ 3,200,000
Proceeds from Issuance of Common Stock, Net	40,900,000
Proceeds from Issuance of Common Stock	$ 43,400,000		$ 41,085,000

Note 10 - Commitments and Con31

Note 10 - Commitments and Contingencies (Details Textual) $ in Millions	Feb. 10, 2014USD ($)
Default Judgement Set Aside Amount	$ 3.5