Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 28, 2015 | Aug. 17, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Giggles N' Hugs, Inc. | |
Entity Central Index Key | 1,381,435 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 28, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 39,231,746 | |
Trading Symbol | GIGL | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 28, 2015 | Dec. 28, 2014 |
Current assets: | ||
Cash and equivalents | $ 144,768 | $ 108,236 |
Inventory | 36,321 | 37,397 |
Prepaid stock-based compensation | 107,583 | 13,222 |
Prepaid expenses, other | 18,994 | 9,810 |
Total current assets | 307,666 | 168,665 |
Fixed assets: | ||
Total fixed assets, net | 2,262,679 | 2,437,730 |
Other assets: | ||
Security deposits, other | 37,380 | 41,980 |
Intangible asset, net | 21,409 | 23,881 |
Total other assets | 58,789 | 65,861 |
Total assets | 2,629,134 | 2,672,256 |
Current liabilities: | ||
Accounts payable | 552,490 | 432,508 |
Incentive from lessor - current portion | $ 117,432 | 111,644 |
Note payable from lessor - current portion | 91,500 | |
Accrued expenses | $ 356,567 | 330,498 |
Deferred revenue | 36,226 | 43,437 |
Total current liabilities | 1,062,715 | 1,009,587 |
Long-term liabilities: | ||
Incentive from lessor - long-term | 1,144,185 | 1,204,199 |
Note payable - lessor, net of discount of $60,228 and $0, respectively | 623,088 | 609,150 |
Total long-term liabilities | 1,767,273 | 1,813,349 |
Total liabilities | 2,829,988 | 2,822,936 |
Stockholders' deficit: | ||
Common stock, $0.001 par value, 1,125,000,000 shares authorized, 38,958,413 and 33,563,830 shares issued and outstanding as of June 28, 2015 and December 28, 2014, respectively | 38,958 | 33,563 |
Common stock payable (348,333 and 1,887,148 shares as of June 28, 2015 and December 28, 2014, respectively) | 173,550 | 668,114 |
Additional paid-in capital | 7,533,741 | 6,301,241 |
Accumulated deficit | (7,947,103) | (7,153,598) |
Total stockholders' deficit | (200,854) | (150,680) |
Total liabilities and stockholders' deficit | $ 2,629,134 | $ 2,672,256 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jun. 28, 2015 | Dec. 28, 2014 |
Statement of Financial Position [Abstract] | ||
Note payable, net of discount | $ 60,228 | $ 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,125,000,000 | 1,125,000,000 |
Common stock, shares issued | 38,958,413 | 33,563,830 |
Common stock, shares outstanding | 38,958,413 | 33,563,830 |
Common stock payable, shares | 348,333 | 1,887,148 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Revenue | ||||
Food and beverage sales | $ 415,154 | $ 416,768 | $ 821,461 | $ 854,925 |
Private party rentals | 204,053 | 198,133 | 496,956 | 391,493 |
Other sales | 247,205 | 238,463 | 494,728 | 459,977 |
Allowances, returns and discounts | (35,600) | (28,753) | (64,106) | (59,734) |
Net sales | 830,812 | 824,611 | 1,749,039 | 1,646,661 |
Costs and operating expenses | ||||
Cost of sales including food and beverage | 212,038 | 229,570 | 426,356 | 443,654 |
Labor | 336,877 | 315,747 | 668,947 | 635,265 |
Occupancy cost | 218,161 | 222,482 | 437,145 | 457,152 |
Depreciation and amortization | 93,753 | 86,966 | 184,371 | 171,152 |
Total operating expenses | 860,829 | 854,765 | 1,716,819 | 1,707,223 |
Other expenses | ||||
Executive compensation | $ 98,750 | $ 99,615 | 212,827 | $ 202,115 |
Employee stock-based compensation | 13,500 | |||
Non-employee stock-based compensation | $ 226,600 | $ 20,346 | 269,600 | $ 43,034 |
Professional and consulting expenses | 102,274 | 160,622 | 177,541 | 399,996 |
General and administrative expenses | 81,058 | 67,656 | 180,880 | 146,992 |
Finance and interest expense | 5,880 | $ 95,716 | 22,833 | $ 130,606 |
Gain on debt modification | (69,228) | (69,228) | ||
Loss (gain) on stock issuance for payable settlement | (525) | 17,772 | $ (2,133) | |
Total costs and operating expenses | 1,305,638 | $ 1,298,720 | 2,542,544 | 2,627,833 |
Loss before provision for income taxes | $ (474,826) | (474,109) | $ (793,505) | (981,172) |
Provision for income taxes | 3,200 | 2,400 | ||
Net loss | $ (474,826) | $ (477,309) | $ (793,505) | $ (983,572) |
Net loss per share - basic | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.04) |
Weighted average number of common shares outstanding - basic | 37,709,576 | 22,524,733 | 35,759,702 | 22,636,405 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (793,505) | $ (983,572) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 184,371 | 171,152 |
Amortization of debt discount | 3,711 | (19,405) |
Non-employee stock-based compensation | 230,822 | $ 85,312 |
Stock-based compensation | 13,500 | |
Loss (gain) on stock issuance for payable settlement | 17,772 | $ (2,133) |
Gain on note payable modification | (69,228) | |
Warrants granted for commission | 38,778 | $ 60,795 |
Changes in operating assets and liabilities: | ||
Increase in prepaid expenses and deposits | (9,184) | (13,434) |
Decrease (increase) in security deposits, other | 4,600 | (4,118) |
Decrease in inventory | $ 1,076 | 8,849 |
Increase in unamortized fees | (3,335) | |
Increase in accounts payable | $ 144,200 | 49,445 |
Decrease in lease incentive liability | (54,226) | (39,484) |
Increase in accrued expenses | 26,069 | 156,353 |
(Decrease) increase in accrued interest | (10,846) | 2,933 |
Decrease in deferred revenue | (7,211) | (1,144) |
Net cash provided used in operating activities | (279,301) | (531,787) |
Cash flows from investing activities | ||
Acquisition of fixed assets | (6,848) | (93,831) |
Net cash used in investing activities | $ (6,848) | (93,831) |
Cash flows from financing activities | ||
Proceeds from convertible note payable | 50,000 | |
Payments on note payable | $ (1,199) | (22,184) |
Proceeds from shares issued | $ 323,880 | 542,000 |
Proceeds from related party | (25,000) | |
Net cash provided by financing activities | $ 322,681 | 544,816 |
NET INCREASE (DECREASE) IN CASH | 36,532 | (80,802) |
CASH AT BEGINNING OF PERIOD | 108,236 | 71,223 |
CASH AT END OF PERIOD | 144,768 | (9,579) |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest paid | 26,834 | 29,948 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Shares issued for prepaid stock compensation | 107,583 | 117,494 |
Shares issued to settle payable | 24,218 | 11,800 |
Shares issued for stock payable | $ 650,462 | 299,500 |
Shares issued to settle convertible notes payable | $ 156,149 |
History and Organization
History and Organization | 6 Months Ended |
Jun. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
History and Organization | NOTE 1 HISTORY AND ORGANIZATION Giggles N Hugs, Inc. (GIGL Inc. or the Company) was originally organized on September 17, 2004 under the laws of the State of Nevada, as Teachers Pet, Inc. GIGL Inc. was organized to sell teaching supplies and learning tools. On August 20, 2010, GIGL Inc. filed an amendment to its articles of incorporation to change its name to Giggles N Hugs, Inc. The Company is authorized to issue 1,125,000,000 shares of its $0.001 par value common stock. On December 30, 2011, GIGL Inc. completed the acquisition of all the issued and outstanding shares of GNH, Inc. (GNH), a Nevada corporation, pursuant to a Stock Exchange Agreement (the SEA). Under the SEA, GIGL Inc. issued 18,289,716 shares of its common stock in exchange for a 100% interest in GNH. Additionally under the SEA, the former officer, director and shareholders of GIGL Inc. agreed to cancel a total of 47,607,500 shares of its common stock. For accounting purposes, the acquisition of GNH by GIGL Inc. has been recorded as a reverse merger of a public company (the Merger), with the exception that no goodwill is generated, and followed up with a recapitalization of GNH based on the factors demonstrating that GNH represents the accounting acquirer. As part of closing of the Merger between GNH and GIGL Inc., GNH obtained 100% of the restaurant operations of Giggles N Hugs in Westfield Mall in Century City, California. The restaurant operations of Giggles N Hugs in Westfield Mall in Century City, California was originally formed April 30, 2010 and opened for operation December 3, 2010. As a result of the Merger, GIGL Inc. now owns all of the assets, liabilities and operations of a kid friendly restaurant named Giggles N Hugs in Westfield Mall in Century City, California. Additionally, GIGL Inc. obtained ownership to all intellectual property rights for Giggles N Hugs facilities in the future. On December 30, 2011, the transactions were completed and resulted in a change in control of the Company. Pursuant to the terms of the Agreement, the Company accepted the resignation of its prior officer and director, Tracie Hadama, and appointed Mr. Joey Parsi as President, Chief Executive Officer, Treasurer, and Secretary of the Company. The Company adopted a 52/53 week fiscal year ending on the Sunday closest to December 31 st |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 28, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 2 BASIS OF PRESENTATION The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US Dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with US generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 28, 2014 and notes thereto included in the Companys annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports. Results of operations for the interim periods are not indicative of annual results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 28, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation At June 28, 2015 the consolidated financial statements include the accounts of Giggles N Hugs, Inc., GNH CC, Inc. for restaurant operations of Giggles N Hugs in Westfield Mall in Century City, California, GNH Topanga, Inc. for restaurant operations in Westfield Topanga Shopping Center in Woodland Hills, California, and Glendale Giggles N Hugs, Inc. for restaurant operations in Glendale Galleria in Glendale, California. At June 29, 2014, consolidated financial statements include the accounts of Giggles N Hugs, Inc. GNH CC, Inc. for restaurant operations of Giggles N Hugs in Westfield Mall in Century City, California, GNH Topanga, Inc. for restaurant operations in Westfield Topanga Shopping Center in Woodland Hills, California. All significant intercompany balances and transactions have been eliminated. Giggles N Hugs, Inc., GNH, Inc., GNH Topanga, Inc., and Glendale Giggles N Hugs, Inc. will be collectively referred herein to as the Company. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates. Cash and cash equivalents For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value. Inventories Inventories are stated at the lower of cost or market on a first-in, first-out basis and consist of restaurant food and other supplies. Property and equipment The Company records all property and equipment at cost less accumulated depreciation. Improvements are capitalized while repairs and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the lease term, whichever is shorter. Leasehold improvements include the cost of the Companys internal development and construction department. Depreciation periods are as follows: Leasehold improvements 10 years Restaurant fixtures and equipment 10 years Computer software and equipment 3 to 5 years Leases The Company currently leases its restaurant locations. The Company evaluates each lease to determine its appropriate classification as an operating or capital lease for financial reporting purposes. Minimum base rent for the Companys operating leases, which generally have escalating rentals over the term of the lease, is recorded on a straight-line basis over the lease term. The initial rent term includes the build-out, or rent holiday period, for the Companys leases, where no rent payments are typically due under the terms of the lease. Deferred rent expense, which is based on a percentage of revenue, is also recorded to the extent it exceeds minimum base rent per the lease agreement. The Company disburses cash for leasehold improvements and furniture, fixtures and equipment to build out and equip its leased premises. The Company also expends cash for structural additions that it makes to leased premises of which $590,000 was reimbursed to Century City, $489,770 was reimbursed to Topanga, and $475,000 was reimbursed to Glendale by their landlords as construction contributions pursuant to agreed-upon terms in the lease agreements. Landlord construction contributions usually take the form of up-front cash. Depending on the specifics of the leased space and the lease agreement, amounts paid for structural components are recorded during the construction period as leasehold improvements or the landlord construction contributions are recorded as an incentive from lessor. Impairment of long-lived assets The Company assesses potential impairment of our long-lived assets whenever events or changes in circumstances indicate that the carrying value of the assets or asset group may not be recoverable. Factors considered include, but are not limited to, significant underperformance relative to historical or projected future operating results; significant changes in the manner of use of the acquired assets or the strategy for the overall business; and significant negative industry or economic trends. The Company regularly reviews the restaurant if it is cash flow negative for the previous four quarters to determine if impairment testing is warranted. At any given time, the Company may monitor its operations, and impairment charges could be triggered in the future if the restaurant performance does not improve. The Company has identified leasehold improvements as the primary asset because it is the most significant component of our restaurant assets, it is the principal asset from which the Company derives cash flow generating capacity and has the longest remaining useful life. The recoverability is assessed in most cases by comparing the carrying value of the assets to the undiscounted cash flows expected to be generated by these assets. Impairment losses are measured as the amount by which the carrying values of the assets exceed their fair values. At June 28, 2015 and June 29, 2014, we did not record an impairment charge against the carrying value of the restaurants located in Century City, Topanga, and Glendale, California. Stock-based compensation The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50. Loss per common share Net loss per share is provided in accordance with ASC Subtopic 260-10. We present basic loss per share (EPS) and diluted EPS on the face of statements of operations. Basic EPS is computed by dividing reported losses by the weighted average shares outstanding. Except where the result would be anti-dilutive to income from continuing operations, diluted earnings per share has been computed assuming the conversion of the convertible long-term debt and the elimination of the related interest expense, and the exercise of stock warrants. Loss per common share has been computed using the weighted average number of common shares outstanding during the year. Fair Value of Financial Instruments The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale. As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Revenue recognition Our revenues consist of sales from our restaurant operations and sales of memberships entitling members unlimited access to our play areas for the duration of their membership. As a general principle, revenue is recognized when the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred and services have been rendered; (iii) the price to the buyer is fixed or determinable; and (iv) collectability is reasonably assured. With respect to memberships, access to our play area extends throughout the term of membership. The vast majority of memberships sold are for one-month terms. Revenue is recognized on a straight-line basis over the membership period. Century City, Topanga, and Glendale receive payments from its customers at the start of the subscription period and each restaurant records deferred revenue for the unearned portion of the subscription period. Revenues from restaurant sales are recognized when payment is tendered at the point of sale. Revenues are presented net of sales taxes. The obligation is included in other accrued expenses until the taxes are remitted to the appropriate taxing authorities. We recognize a liability upon the sale of our gift cards and recognize revenue when these gift cards are redeemed in our restaurants. For party rental agreements, we rely upon a signed contract between us and the customer as the persuasive evidence of a sales arrangement. Party rental deposits are recorded as deferred revenue upon receipt and recognized as revenue when the service has been rendered. Additionally, revenues are recognized net of any discounts, returns, allowances and sales incentives, including coupon redemptions and complimentary meals. Convertible Debentures Beneficial Conversion Feature - If the conversion features of conventional convertible debt provides for a rate of conversion that is below market value, this feature is characterized as a beneficial conversion feature (BCF). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 Debt with Conversion and Other Options. In those circumstances, the convertible debt is recorded net of the discount related to the BCF and the Company amortizes the discount to interest expense over the life of the debt using the effective interest method. Debt Modification ASC 470-50 provides the accounting for a modification or exchange of a debt instrument between the same debtor and creditor. An exchange of debt instruments with different terms but with the same creditor has the same economic effect of modifying the terms of an existing debt instrument and thus is in the scope of ASC 470-50. When the debtor and creditor agree to modify existing debt or exchange old debt for new debt, they have, in effect, renegotiated the old debt by changing its cash flows. While the modification or exchange of debt does not meet the conditions specified in ASC 405-20 for extinguishment accounting, substantial changes in the cash flows are viewed to represent extinguishments of the old debt and the creation of new debt, resulting in recognition of gain or loss by the debtor. Recent pronouncements The Company has evaluated the recent accounting pronouncements through June 2015 and believes that none of them will have a material effect on the Companys financial position, results of operations or cash flows. |
Going Concern
Going Concern | 6 Months Ended |
Jun. 28, 2015 | |
Going Concern | |
Going Concern | NOTE 4 GOING CONCERN The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, which contemplate continuation of the Company as a going concern. The Company has recently sustained operating losses and has an accumulated deficit of $7,947,103 at June 28, 2015. In addition, the Company has negative working capital of $755,049 at June 28, 2015. These factors raise substantial doubt about the ability of the Company to continue as a going concern. In this regard, management is proposing to raise any necessary additional funds not provided by operations through loans or through sales of their common stock. There is no assurance that the Company will be successful in raising this additional capital or in achieving profitable operations. The 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. |
Inventory
Inventory | 6 Months Ended |
Jun. 28, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 5 INVENTORY Inventory consisted of the following at: June 28, 2015 December 28, 2014 Restaurant food and supplies $ 36,321 $ 37,397 Total $ 36,321 $ 37,397 |
Fixed Assets
Fixed Assets | 6 Months Ended |
Jun. 28, 2015 | |
Fixed assets: | |
Fixed Assets | NOTE 6 FIXED ASSETS Fixed assets consisted of the following at: June 28, 2015 December 28, 2014 Leasehold improvements $ 2,847,565 $ 2,847,565 Fixtures and equipment 85,267 85,267 Computer software and equipment 280,881 269,932 Property and equipment, total 3,213,713 3,202,764 Less: accumulated depreciation (951,034 ) (765,034 ) Property and equipment, net $ 2,262,679 $ 2,437,730 Depreciation expenses for the thirteen weeks and twenty-six weeks ended June 28, 2015 were $92,517 and $181,899, respectively, for the thirteen weeks and twenty-six weeks ended June 29, 2014 were $86,966 and $171,152, respectively. Repair and maintenance expenses for the thirteen weeks and twenty-six weeks ended June 28, 2015 were $24,242 and $47,664, respectively, and for thirteen weeks and twenty-six weeks ended June 29, 2014 were $23,316 and $45,432, respectively. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 28, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 7 INTANGIBLE ASSETS June 28, 2015 December 28, 2014 Intangible Asset $ 24,703 $ 24,703 Less: accumulated amortization (3,294 ) (822 ) Intangible Asset, net $ 21,409 $ 23,881 Amortization expense was $1,236 and $2,472 for the thirteen weeks and twenty-six weeks ended June 28, 2015. There was no amortization expense for the thirteen weeks and twenty-six weeks ended June 29, 2014. |
Deferred Revenue
Deferred Revenue | 6 Months Ended |
Jun. 28, 2015 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue | NOTE 8 DEFERRED REVENUE Deferred revenue consisted of the following at: June 28, 2015 December 28, 2014 Membership cards $ 1,379 $ 1,263 Gift cards 4,070 4,212 Dining credit program 1,166 1,166 Party deposits 29,611 36,796 Total $ 36,226 $ 43,437 |
Incentive From Lessor
Incentive From Lessor | 6 Months Ended |
Jun. 28, 2015 | |
Leases [Abstract] | |
Incentive From Lessor | NOTE 9 INCENTIVE FROM LESSOR Pursuant to agreed-upon terms within each stores lease agreements, the Companys landlords provided construction contributions in the amount of $590,000 for Century City; $489,770 for Topanga and $475,000 for Glendale. All funds had been received prior to 2015. Landlord construction contributions usually take the form of up-front cash. Depending on the specifics of the leased space and the lease agreement, amounts paid for structural components are recorded during the construction period as leasehold improvements or the landlord construction contributions are recorded as an incentive from lessor. The incentive from lessor is amortized over the life of the lease which is 10 years and netted against occupancy cost. Amortization of the incentive from lessor was $27,740 and $54,226 for the thirteen weeks and twenty-six weeks ended June 28, 2015 and $19,331 and $20,153 for thirteen weeks and twenty-six weeks ended June 29, 2014, respectively. |
Note Payable Lessor
Note Payable Lessor | 6 Months Ended |
Jun. 28, 2015 | |
Note Payable Lessor | |
Note Payable Lessor | NOTE 10 NOTE PAYABLE LESSOR On February 12, 2013, the Company entered into a $700,000 Promissory Note Payable Agreement with GGP Limited Partnership (Lender) to be used by the Company for a portion of the construction work to be performed by the Company under the lease by and between the Company and Glendale II Mall Associates, LLC. The Note Payable accrues interest at a rate of 10% through October 15, 2015, 12% through October 31, 2017, and 15% through October 31, 2023 and matures on October 31, 2023. As of June 29, 2014, the Company had drawn $595,000 from the Promissory Note. During the thirteen weeks and twenty-six weeks ended June 29, 2014, the Company paid a total of $25,133 and $52,133, respectively, which included interest of $14,930 and $31,068, respectively. As of June 29, 2014, the Company has a Promissory Note balance of $572,816, and accrued interest balance of $25,114. In 2015, the Company renegotiated the terms of the Promissory Note with a new principal balance of $683,316. The lender waived principal and interest payments for two years beginning March 1, 2015. Thereafter, principal and interest will be paid in equal monthly installments of $12,707, with interest rates applied under the following terms: March 1, 2017 through February 28, 2019 ten percent (10%) March 1, 2019 through February 28, 2021 twelve percent (12%) March 1, 2021 through October 31, 2023 fifteen percent (15%) As a result of the loan modification, the Company recognized a gain of $69,228 and a discount of $63,929, of which $3,711 of interest has amortized as of June 28, 2015. |
Private Placement Offerings
Private Placement Offerings | 6 Months Ended |
Jun. 28, 2015 | |
Private Placement Offerings | |
Private Placement Offerings | NOTE 11 PRIVATE PLACEMENT OFFERINGS On May 22, 2013, the Company entered into a Private Placement Agreement with WestPark Capital, Inc. (WestPark), which was amended on April 30, 2014. Under the amendment to the Private Placement Engagement Agreement (the Agreement), WestPark will be compensated 10% of transaction value for all equity related transactions, 5% of debt placement for subordinated debt, 2.5% of debt on senior debt placement, 0.5% on credit enhancement, 5% of transaction value for all transactions that are placed through general solicitation of the Companys customer database, and 7 year warrants for the purchase of an equity interest of the Company equal to 3% of the outstanding shares after the final closing of funding pursuant to the terms of this Agreement. If funds raised are less than $2,000,000, such 3% will be prorated accordingly. The warrants will have a nominal exercise price of $0.1 per share and a cashless exercise provision. During the thirteen weeks ended March 29, 2015, the Company had the following three offerings: On January 15, 2015, the Company entered into a private placement (the 2014 Offering) to raise capital by issuing 13,333 shares of common stock for a total of $4,000 in cash. On February 27, 2015, the Company entered into a private placement (the 2014 Offering) to raise capital by issuing 200,000 shares of common stock for a total of $30,000 in cash. On March 6, 2015, the Company entered into a private placement (the 2014 Offering) to raise capital by issuing 533,333 shares of common stock for a total of $86,000 in cash. During the thirteen weeks ended March 29, 2015, the Company granted approximately 64,373 warrants to WestPark based on the aforementioned terms. The warrant expense was $19,211 for the thirteen weeks ended March 29, 2015. During the thirteen weeks ended June 28, 2015, the Company had one offering. On March 31, 2015, the Company entered into a private placement (the 2015 Offering) to raise capital by issuing a total of 1,100,000 shares of common stock for a total of $165,000 in cash, less $22,936 offering cost. During the thirteen weeks ended June 28, 2015, the Company granted approximately 97,099 warrants to WestPark based on the aforementioned terms. The warrant expense is $19,567 for the thirteen weeks ended June, 28, 2015. |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jun. 28, 2015 | |
Equity [Abstract] | |
Stockholders' Deficit | NOTE 12 STOCKHOLDERS DEFICIT The Company is authorized to issue 1,125,000,000 shares of $0.001 par value common stock. As of June 28, 2015, and December 28, 2014, 38,958,413 shares and 33,563,830 shares were issued and outstanding, respectively. On December 31, 2014, the Company issued 80,768 shares of common stock to a third party to settle accounts payable of $16,093. The fair value of the shares of common stock was $31,390. As a result, $15,297 was recorded as loss on settlement of payable. On January 19, 2015, the Company issued 733,333 common stock in settlement of stock payable of $110,000 recorded as of December 28, 2014. On January 19, 2015, the Company issued 50,000 shares of common stock to a third party in settlement of a law suit with a fair value of $26,438 recorded as common stock payable as of December 28, 2014. On January 26, 2015, the Company issued 20,000 shares of common stock to a third party for settlement of an account payable balance of $4,000. The fair value of the shares of common stock was $7,000. As a result, $3,000 has been recorded as a loss on settlement of payable. On February 10, 2015, the Company issued 864,649 shares of common stock in settlement of stock payable of $378,941 as of December 28, 2014. On March 9, 2015, the Company issued 50,000 shares of common stock to an employee as additional compensation. The fair value of these shares of common stock on the grant date was $13,500. On March 11, 2015, the Company issued 400,000 common shares to a third party for services and the shares are fair valued at $124,000. The shares were for a contract period of twelve months. As of June 28, 2015, the Company has recorded $72,333 as prepaid expenses, and $51,667 as non-employee stock compensation. On April 2, 2015, the Company issued 70,000 shares of common stock to a third party in settlement of stock payable of $20,183 recorded as of December 31, 2014 and services rendered with a fair value of $4,900. On April 9, 2015, the Company issued 150,000 shares of common stock to a consultant as a signing bonus under a one-year contract. The fair market value for the shares issued was $42,300. On April 24, 2015, the Company issued 1,833,333 shares of common stock to several investors under a private placement agreement. The proceeds from the sale of these shares amounted to $275,000, less $22,936 offering cost. On May 24, 2015, the Company issued 560,000 shares of common stock to a founding investor. The proceeds from this sale amounted to $84,000. In addition, another 560,000 shares of common stock were granted for his service towards the development of the Company. The fair value for the shares issued was $100,800. On May 27, 2015, the Company issued 22,500 shares of common stock to a third party to settle accounts payable of $4,125. The fair market value of common shares was $3,600. As a result, $525 was recorded as a gain on settlement of accounts payable. The Company issued 23,333 shares to a third party on July 6, 2015 in settlement of $4,433 stock payable recorded as of June 28, 2015. The Company issued 250,000 shares to a third party in July 6, 2015 in settlement of $35,250 stock payable recorded as of June 28, 2015. As of June 28, 2015, the Company has an agreement with a consultant to issue 75,000 shares for services rendered and has recorded stock payable at fair value of $13,500. |
Stock Options and Warrants
Stock Options and Warrants | 6 Months Ended |
Jun. 28, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options and Warrants | NOTE 13 STOCK OPTIONS AND WARRANTS Employee Stock Options The following table summarizes the changes in the options outstanding at June 28, 2015, and the related prices for the shares of the Companys common stock issued to employees of the Company under a non-qualified employee stock option plan. Weighted Weighted Average Weighted Range of Average Remaining Average Exercise Number Exercise Contractual Number Exercise Prices Outstanding Price Life Exercisable Price $ 4.50 135,000 $ 4.50 2.60 135,000 $ 4.50 135,000 2.60 135,000 A summary of the Companys stock awards for options as of December 28, 2014 and changes for the thirteen weeks ended June 28, 2015 is presented below: Weighted Average Stock Exercise Options Price Outstanding, December 28, 2014 135,000 $ 4.50 Granted Exercised Expired/Cancelled Outstanding, June 28, 2015 135,000 $ 4.50 Exercisable, June 28, 2015 135,000 $ 4.50 The weighted-average fair value of stock options granted to employees during the period ended June 28, 2015 and June 29, 2014 and the weighted-average significant assumptions used to determine those fair values, using a Black-Scholes-Merton (Black-Scholes) option pricing model are as follows: June 28, 2015 June 29, 2014 Significant assumptions (weighted-average): Risk-free interest rate at grant date 1.53% ~ 2.04 % 0.78 % Expected stock price volatility 331% ~ 335 % 139 % Expected dividend payout - - Expected option life (in years) 7.00 5.00 Expected forfeiture rate - % - % Fair value per share of options granted $ 0.27 ~ 0.32 $ 3.96 The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company has no historical experience with which to establish a basis for determining an expected life of these awards. Therefore, the Company only gave consideration to the contractual terms and did not consider the vesting schedules, exercise patterns and pre-vesting and post-vesting forfeitures significant to the expected life of the option award. We estimate the volatility of our common stock based on the calculated historical volatility of similar entities in industry, in size and in financial leverage whose share prices are publicly available. We base the risk-free interest rate used in the Black-Scholes option valuation model on the yield rate currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award. We have not paid any cash dividends on our common stock and do not anticipate paying any cash dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero in the Black-Scholes option valuation model. There were no options granted during the quarter ended June 28, 2015. There were no stock-based compensation expenses in connection with options granted to employees recognized in the condensed consolidated statement of operation for the twenty-six weeks ended June 28, 2015 and June 29, 2014. Warrants The following table summarizes the changes in the warrants outstanding at June 28, 2015, and the related prices. Weighted Weighted Average Weighted Range of Average Remaining Average Exercise Number Exercise Contractual Number Exercise Prices Outstanding Price Life Exercisable Price $ 0.37 162,162 $ 0.37 3.79 162,162 $ 0.37 0.01 377,820 0.01 6.38 377,820 0.01 539,982 5.44 539,982 A summary of the Companys warrant as of December 28, 2014 and the changes for the twenty-six weeks ended June 28, 2015 is presented below: Weighted Average Exercise Warrants Price Outstanding, December 28, 2014 378,510 $ 0.16 Granted 161,472 0.01 Exercised Expired/Cancelled Outstanding, June 28, 2015 539,982 $ 0.12 Exercisable, June 28, 2015 539,982 $ 0.12 The weighted-average fair value of warrants granted to third parties during the period ended June 28, 2015 and December 28, 2014 and the weighted-average significant assumptions used to determine those fair values, using a Black-Scholes-Merton (Black-Scholes) option pricing model are as follows: June 28, 2015 June 29, 2014 Significant assumptions (weighted-average): Risk-free interest rate at grant date 1.53% ~ 2.04 % 0.78 % Expected stock price volatility 331% ~ 335 % 139 % Expected dividend payout - - Expected option life (in years) 7.00 5.00 Expected forfeiture rate - % - % Fair value per share of options granted $ 0.27 ~ 0.32 $ 3.96 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 28, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14 RELATED PARTY TRANSACTIONS From time to time, the Company has received advances from certain of its officers and related parties to meet short term working capital needs. These advances may not have formal repayment terms or arrangements. During the twenty-six weeks ended June 28, 2015, the Company did not receive any advances from related parties. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 28, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 15 COMMITMENTS AND CONTINGENCIES The Company leases its Century City restaurant location under an operating lease with a remaining term of 10 years. Restaurant leases typically include land and building shells, require contingent rent above the minimum base rent payments based on a percentage of sales ranging from 7% to 10%, have escalating minimum rent requirements over the term of the lease and require various expenses incidental to the use of the property. The lease also has a renewal option, which the Company may exercise in the future. The Companys current lease provides early termination rights, permitting the Company and its landlord to mutually terminate the lease prior to expiration if the Company does not achieve specified sales levels in certain years. As of June 28, 2015, the aggregate minimum annual lease payments under operating leases, including amounts characterized as deemed landlord financing payments are as follows: 2015 $ 100,485 2016 206,498 2017 212,692 2018 219,073 2019 225,645 Thereafter 38,265 Total $ 1,002,658 Rent expense for the Companys Century City operating lease was $34,767 and $34,766 for the thirteen weeks ended June 28, 2015 and June 29, 2014, respectively, and was $69,533 and $69,532 for the twenty-six weeks ended June 28, 2015 and June 29, 2014, respectively. During the year ended December 31, 2012, GNH Topanga entered into a Lease Agreement with Westfield Topanga Owner, LP, a Delaware limited partnership, to lease approximately 5,900 square feet in the Westfield Topanga Shopping Center. The lease includes land and building shells, provides a construction reimbursement allowance of up to $489,770, requires contingent rent above the minimum base rent payments based on a percentage of sales ranging from 7% to 10% and require other expenses incidental to the use of the property. The lease also has a renewal option, which GNH Topanga may exercise in the future. The Companys current lease provides early termination rights, permitting the Company and its landlord to mutually terminate the lease prior to expiration if the Company does not achieve specified sales levels in certain years. The lease commenced on March 23, 2013, Topangas grand opening, and expires on April 30, 2022. As of June 28, 2015, the aggregate minimum annual lease payments under operating leases, including amounts characterized as deemed landlord financing payments are as follows: 2015 $ 119,461 2016 247,682 2017 257,589 2018 267,891 2019 278,606 Thereafter 694,884 Total $ 1,866,113 Rent expense for the Companys Topanga operating lease was $51,873 and $51,873 for the thirteen weeks ended June 28, 2015 and June 29, 2014, respectively, and was $103,745 and $103,745 for the twenty-six weeks ended June 28, 2015 and June 29, 2014, respectively. On April 1, 2013, the Company entered into a Lease Agreement with Glendale II Mall Associates, LLC, a Delaware limited liability company, to lease approximately 6,000 square feet in the Glendale Galleria in the City of Glendale, County of Los Angeles, and State of California. The lease includes land and building shells, provides a construction reimbursement allowance of up to $475,000, requires contingent rent above the minimum base rent payments based on a percentage of sales ranging from 4% to 7% and require other expenses incidental to the use of the property. The lease commenced on November 21, 2013 and expires on October 31, 2023. Upon commencement, the aggregate minimum annual lease payments under operating leases, including amounts characterized as deemed landlord financing payments are as follows: 2015 $ 98,877 2016 203,648 2017 211,794 2018 220,266 2019 229,077 Thereafter 964,800 Total $ 1,928,462 Rent expense for the Companys Glendale operating lease was $44,064 and $45,867 for the thirteen weeks ended June 28, 2015 and June 29, 2014, respectively. And $88,128 and $91,734 for the twenty-six weeks ended June 28, 2015 and June 29, 2014, respectively. Litigation The Companys CEO, Joey Parsi and a third party, were named in a complaint filed on July 19, 2012 in the Los Angeles Superior Court by Alex Nerush and Preferred Scan, Inc., alleging fraud, negligent misrepresentation, sale of securities by unlicensed broker, and sale of securities by means of false and misleading statements. On August 21, 2014, Giggles N Hugs, Inc., the Company and Mr. Parsi entered into a settlement in the case of Nerush v. Steele et al filed in Los Angeles Superior Court, Case Number SC 117 806 (the Settlement). The Settlement was with Alex Nerush, Preferred Scan, Inc. (Preferred Scan), Richard Steele, Jr., Donald Stoecklein, and the Stoecklein Law Group, LLP (Law Group) where all allegations against the Company were dismissed with prejudice. The Settlement provided, among other things, the following: a) The Law Group agreed to release the sum of approximately 140,000 shares of unrestricted common stock of the Company, held by the United States District Court; b) Preferred Scan and Mr. Nerush shall dismiss, with prejudice, any and all causes of action against the Company and Mr. Parsi, in exchange for a cash payment of $20,000 and 150,000 of restricted shares of the Companys common stock. The $20,000 was paid in two equal payments with the first payment made August 22, 2014, and second made September 29, 2014; c) In exchange for 50,000 shares of the Companys unrestricted common stock, released pursuant to item (a) above; the Company and Mr. Parsi shall release any and all causes of action against Mr. Steele, Mr. Stoecklein and the Law Group in exchange for release from the Law Group of any obligation to pay attorneys fees totaling approximately $116,000, and of any and all causes of action against the Company and Mr. Parsi. On October 20, 2014, pursuant to the Settlement, 52,500 shares of restricted common stock were issued. On January 19, 2015, the Company issued 50,000 shares of unrestricted remaining common stock related to the settlement. The distribution and issuance of the remaining 97,500 shares of restricted common has yet to be determined. The total number of shares of common stock issued pursuant to the Settlement is equal to less than one percent (1%) of the total number of shares of the Companys common stock issued and outstanding as of the Companys Annual Report on Form 10-K filed with the SEC on April 15, 2015. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 28, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 16 SUBSEQUENT EVENTS The Companys Management has reviewed all material events through the date of this report in accordance with ASC 855-10, and believes the only subsequent events that have occurred since June 28, 2015 were as follows: The Company issued 23,333 shares to a third party on July 6, 2015 in settlement of $4,433 stock payable recorded as of June 28, 2015. The Company issued 250,000 shares to a third party in July 6, 2015 in settlement of $35,250 stock payable recorded as of June 28, 2015. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 28, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of consolidation At June 28, 2015 the consolidated financial statements include the accounts of Giggles N Hugs, Inc., GNH CC, Inc. for restaurant operations of Giggles N Hugs in Westfield Mall in Century City, California, GNH Topanga, Inc. for restaurant operations in Westfield Topanga Shopping Center in Woodland Hills, California, and Glendale Giggles N Hugs, Inc. for restaurant operations in Glendale Galleria in Glendale, California. At June 29, 2014, consolidated financial statements include the accounts of Giggles N Hugs, Inc. GNH CC, Inc. for restaurant operations of Giggles N Hugs in Westfield Mall in Century City, California, GNH Topanga, Inc. for restaurant operations in Westfield Topanga Shopping Center in Woodland Hills, California. All significant intercompany balances and transactions have been eliminated. Giggles N Hugs, Inc., GNH, Inc., GNH Topanga, Inc., and Glendale Giggles N Hugs, Inc. will be collectively referred herein to as the Company. |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates. |
Cash and Cash Equivalents | Cash and cash equivalents For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value. |
Inventories | Inventories Inventories are stated at the lower of cost or market on a first-in, first-out basis and consist of restaurant food and other supplies. |
Property and Equipment | Property and equipment The Company records all property and equipment at cost less accumulated depreciation. Improvements are capitalized while repairs and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful life of the assets or the lease term, whichever is shorter. Leasehold improvements include the cost of the Companys internal development and construction department. Depreciation periods are as follows: Leasehold improvements 10 years Restaurant fixtures and equipment 10 years Computer software and equipment 3 to 5 years |
Leases | Leases The Company currently leases its restaurant locations. The Company evaluates each lease to determine its appropriate classification as an operating or capital lease for financial reporting purposes. Minimum base rent for the Companys operating leases, which generally have escalating rentals over the term of the lease, is recorded on a straight-line basis over the lease term. The initial rent term includes the build-out, or rent holiday period, for the Companys leases, where no rent payments are typically due under the terms of the lease. Deferred rent expense, which is based on a percentage of revenue, is also recorded to the extent it exceeds minimum base rent per the lease agreement. The Company disburses cash for leasehold improvements and furniture, fixtures and equipment to build out and equip its leased premises. The Company also expends cash for structural additions that it makes to leased premises of which $590,000 was reimbursed to Century City, $489,770 was reimbursed to Topanga, and $475,000 was reimbursed to Glendale by their landlords as construction contributions pursuant to agreed-upon terms in the lease agreements. Landlord construction contributions usually take the form of up-front cash. Depending on the specifics of the leased space and the lease agreement, amounts paid for structural components are recorded during the construction period as leasehold improvements or the landlord construction contributions are recorded as an incentive from lessor. |
Impairment of long-lived assets | Impairment of long-lived assets The Company assesses potential impairment of our long-lived assets whenever events or changes in circumstances indicate that the carrying value of the assets or asset group may not be recoverable. Factors considered include, but are not limited to, significant underperformance relative to historical or projected future operating results; significant changes in the manner of use of the acquired assets or the strategy for the overall business; and significant negative industry or economic trends. The Company regularly reviews the restaurant if it is cash flow negative for the previous four quarters to determine if impairment testing is warranted. At any given time, the Company may monitor its operations, and impairment charges could be triggered in the future if the restaurant performance does not improve. The Company has identified leasehold improvements as the primary asset because it is the most significant component of our restaurant assets, it is the principal asset from which the Company derives cash flow generating capacity and has the longest remaining useful life. The recoverability is assessed in most cases by comparing the carrying value of the assets to the undiscounted cash flows expected to be generated by these assets. Impairment losses are measured as the amount by which the carrying values of the assets exceed their fair values. At June 28, 2015 and June 29, 2014, we did not record an impairment charge against the carrying value of the restaurants located in Century City, Topanga, and Glendale, California. |
Stock-Based Compensation | Stock-based compensation The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50. |
Loss per Common Share | Loss per common share Net loss per share is provided in accordance with ASC Subtopic 260-10. We present basic loss per share (EPS) and diluted EPS on the face of statements of operations. Basic EPS is computed by dividing reported losses by the weighted average shares outstanding. Except where the result would be anti-dilutive to income from continuing operations, diluted earnings per share has been computed assuming the conversion of the convertible long-term debt and the elimination of the related interest expense, and the exercise of stock warrants. Loss per common share has been computed using the weighted average number of common shares outstanding during the year. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale. As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
Revenue Recognition | Revenue recognition Our revenues consist of sales from our restaurant operations and sales of memberships entitling members unlimited access to our play areas for the duration of their membership. As a general principle, revenue is recognized when the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred and services have been rendered; (iii) the price to the buyer is fixed or determinable; and (iv) collectability is reasonably assured. With respect to memberships, access to our play area extends throughout the term of membership. The vast majority of memberships sold are for one-month terms. Revenue is recognized on a straight-line basis over the membership period. Century City, Topanga, and Glendale receive payments from its customers at the start of the subscription period and each restaurant records deferred revenue for the unearned portion of the subscription period. Revenues from restaurant sales are recognized when payment is tendered at the point of sale. Revenues are presented net of sales taxes. The obligation is included in other accrued expenses until the taxes are remitted to the appropriate taxing authorities. We recognize a liability upon the sale of our gift cards and recognize revenue when these gift cards are redeemed in our restaurants. For party rental agreements, we rely upon a signed contract between us and the customer as the persuasive evidence of a sales arrangement. Party rental deposits are recorded as deferred revenue upon receipt and recognized as revenue when the service has been rendered. Additionally, revenues are recognized net of any discounts, returns, allowances and sales incentives, including coupon redemptions and complimentary meals. |
Convertible Debentures | Convertible Debentures Beneficial Conversion Feature - If the conversion features of conventional convertible debt provides for a rate of conversion that is below market value, this feature is characterized as a beneficial conversion feature (BCF). A BCF is recorded by the Company as a debt discount pursuant to ASC Topic 470-20 Debt with Conversion and Other Options. In those circumstances, the convertible debt is recorded net of the discount related to the BCF and the Company amortizes the discount to interest expense over the life of the debt using the effective interest method. |
Debt Modification | Debt Modification ASC 470-50 provides the accounting for a modification or exchange of a debt instrument between the same debtor and creditor. An exchange of debt instruments with different terms but with the same creditor has the same economic effect of modifying the terms of an existing debt instrument and thus is in the scope of ASC 470-50. When the debtor and creditor agree to modify existing debt or exchange old debt for new debt, they have, in effect, renegotiated the old debt by changing its cash flows. While the modification or exchange of debt does not meet the conditions specified in ASC 405-20 for extinguishment accounting, substantial changes in the cash flows are viewed to represent extinguishments of the old debt and the creation of new debt, resulting in recognition of gain or loss by the debtor. |
Recent Pronouncements | Recent pronouncements The Company has evaluated the recent accounting pronouncements through June 2015 and believes that none of them will have a material effect on the Companys financial position, results of operations or cash flows. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Estimated Useful Lives | Depreciation periods are as follows: Leasehold improvements 10 years Restaurant fixtures and equipment 10 years Computer software and equipment 3 to 5 years |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following at: June 28, 2015 December 28, 2014 Restaurant food and supplies $ 36,321 $ 37,397 Total $ 36,321 $ 37,397 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Fixed assets: | |
Schedule of Fixed Assets | Fixed assets consisted of the following at: June 28, 2015 December 28, 2014 Leasehold improvements $ 2,847,565 $ 2,847,565 Fixtures and equipment 85,267 85,267 Computer software and equipment 280,881 269,932 Property and equipment, total 3,213,713 3,202,764 Less: accumulated depreciation (951,034 ) (765,034 ) Property and equipment, net $ 2,262,679 $ 2,437,730 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | June 28, 2015 December 28, 2014 Intangible Asset $ 24,703 $ 24,703 Less: accumulated amortization (3,294 ) (822 ) Intangible Asset, net $ 21,409 $ 23,881 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Deferred Revenue Disclosure [Abstract] | |
Schedule of Deferred Revenue | Deferred revenue consisted of the following at: June 28, 2015 December 28, 2014 Membership cards $ 1,379 $ 1,263 Gift cards 4,070 4,212 Dining credit program 1,166 1,166 Party deposits 29,611 36,796 Total $ 36,226 $ 43,437 |
Stock Options and Warrants (Tab
Stock Options and Warrants (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Summary of Changes in Options Outstanding | Weighted Weighted Average Weighted Range of Average Remaining Average Exercise Number Exercise Contractual Number Exercise Prices Outstanding Price Life Exercisable Price $ 4.50 135,000 $ 4.50 2.60 135,000 $ 4.50 135,000 2.60 135,000 |
Summary of Stock Awards for Options | Weighted Average Stock Exercise Options Price Outstanding, December 28, 2014 135,000 $ 4.50 Granted Exercised Expired/Cancelled Outstanding, June 28, 2015 135,000 $ 4.50 Exercisable, June 28, 2015 135,000 $ 4.50 |
Schedule of Changes in Warrants Outstanding | Weighted Weighted Average Weighted Range of Average Remaining Average Exercise Number Exercise Contractual Number Exercise Prices Outstanding Price Life Exercisable Price $ 0.37 162,162 $ 0.37 3.79 162,162 $ 0.37 0.01 377,820 0.01 6.38 377,820 0.01 539,982 5.44 539,982 |
Schedule of Stock Warrants Activity | Weighted Average Exercise Warrants Price Outstanding, December 28, 2014 378,510 $ 0.16 Granted 161,472 0.01 Exercised Expired/Cancelled Outstanding, June 28, 2015 539,982 $ 0.12 Exercisable, June 28, 2015 539,982 $ 0.12 |
Warrants [Member] | |
Weighted-Average Fair Value of Stock Options Granted to Employees | June 28, 2015 June 29, 2014 Significant assumptions (weighted-average): Risk-free interest rate at grant date 1.53% ~ 2.04 % 0.78 % Expected stock price volatility 331% ~ 335 % 139 % Expected dividend payout - - Expected option life (in years) 7.00 5.00 Expected forfeiture rate - % - % Fair value per share of options granted $ 0.27 ~ 0.32 $ 3.96 |
Employees [Member] | |
Weighted-Average Fair Value of Stock Options Granted to Employees | June 28, 2015 June 29, 2014 Significant assumptions (weighted-average): Risk-free interest rate at grant date 1.53% ~ 2.04 % 0.78 % Expected stock price volatility 331% ~ 335 % 139 % Expected dividend payout - - Expected option life (in years) 7.00 5.00 Expected forfeiture rate - % - % Fair value per share of options granted $ 0.27 ~ 0.32 $ 3.96 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 28, 2015 | |
Century City [Member] | |
Schedule of Aggregate Minimum Annual Lease Payments Under Operating Leases | 2015 $ 100,485 2016 206,498 2017 212,692 2018 219,073 2019 225,645 Thereafter 38,265 Total $ 1,002,658 |
Topanga [Member] | |
Schedule of Aggregate Minimum Annual Lease Payments Under Operating Leases | 2015 $ 119,461 2016 247,682 2017 257,589 2018 267,891 2019 278,606 Thereafter 694,884 Total $ 1,866,113 |
Glendale II Mall Associates, LLC [Member] | |
Schedule of Aggregate Minimum Annual Lease Payments Under Operating Leases | 2015 $ 98,877 2016 203,648 2017 211,794 2018 220,266 2019 229,077 Thereafter 964,800 Total $ 1,928,462 |
History and Organization (Detai
History and Organization (Details Narrative) - $ / shares | Dec. 30, 2011 | Jun. 28, 2015 | Dec. 28, 2014 | Mar. 30, 2012 | Sep. 17, 2004 |
Common stock, shares authorized | 1,125,000,000 | 1,125,000,000 | 1,125,000,000 | ||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||
GNH, Inc. [Member] | |||||
Shares issued for acquisition | 18,289,716 | ||||
Cancellation of common stock, shares | 47,607,500 | ||||
Percentage of interest acquired | 100.00% |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Jun. 28, 2015 | Dec. 28, 2014 |
Incentive from lessor amount | $ 1,144,185 | $ 1,204,199 |
Century City [Member] | ||
Incentive from lessor amount | 590,000 | |
Topanga [Member] | ||
Incentive from lessor amount | 489,770 | |
Glendale II Mall Associates, LLC [Member] | ||
Incentive from lessor amount | $ 475,000 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Details) | 6 Months Ended |
Jun. 28, 2015 | |
Leasehold Improvements [Member] | |
Estimated useful lives | 10 years |
Restaurant Fixtures And Equipment [Member] | |
Estimated useful lives | 10 years |
Computer Software And Equipment [Member] | Minimum [Member] | |
Estimated useful lives | 3 years |
Computer Software And Equipment [Member] | Maximum [Member] | |
Estimated useful lives | 5 years |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Jun. 28, 2015 | Dec. 28, 2014 |
Going Concern | ||
Accumulated deficit | $ 7,947,103 | $ 7,153,598 |
Working capital deficit | $ 755,049 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) | Jun. 28, 2015 | Dec. 28, 2014 |
Inventory Disclosure [Abstract] | ||
Restaurant food and supplies | $ 36,321 | $ 37,397 |
Total | $ 36,321 | $ 37,397 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Fixed assets: | ||||
Depreciation expenses | $ 92,517 | $ 86,966 | $ 181,899 | $ 171,152 |
Repair and maintenance expenses | $ 24,242 | $ 23,316 | $ 47,664 | $ 45,432 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) | Jun. 28, 2015 | Dec. 28, 2014 |
Fixed assets: | ||
Leasehold improvements | $ 2,847,565 | $ 2,847,565 |
Fixtures and equipment | 85,267 | 85,267 |
Computer software and equipment | 280,881 | 269,932 |
Property and equipment, total | 3,213,713 | 3,202,764 |
Less: accumulated depreciation | (951,034) | (765,034) |
Property and equipment, net | $ 2,262,679 | $ 2,437,730 |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - USD ($) | Jun. 28, 2015 | Dec. 28, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 3,294 | $ 822 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | Jun. 28, 2015 | Dec. 28, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible Assets | $ 24,703 | $ 24,703 |
Less: accumulated amortization | (3,294) | (822) |
Intangible Asset, net | $ 21,409 | $ 23,881 |
Deferred Revenue - Schedule of
Deferred Revenue - Schedule of Deferred Revenue (Details) - USD ($) | Jun. 28, 2015 | Dec. 28, 2014 |
Deferred Revenue Disclosure [Abstract] | ||
Membership cards | $ 1,379 | $ 1,263 |
Gift cards | 4,070 | 4,212 |
Dining credit program | 1,166 | 1,166 |
Party deposits | 29,611 | 36,796 |
Total | $ 36,226 | $ 43,437 |
Incentive From Lessor (Details
Incentive From Lessor (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | Dec. 28, 2014 | |
Incentive from lessor amount | $ 1,144,185 | $ 1,144,185 | $ 1,204,199 | ||
Lease incentive amortization period | 10 years | ||||
Amortization of incentives from lessors | 54,226 | $ 20,153 | $ 27,740 | $ 19,331 | |
Century City [Member] | |||||
Incentive from lessor amount | 590,000 | 590,000 | |||
Topanga [Member] | |||||
Incentive from lessor amount | 489,770 | 489,770 | |||
Glendale II Mall Associates, LLC [Member] | |||||
Incentive from lessor amount | $ 475,000 | $ 475,000 |
Note Payable Lessor (Details Na
Note Payable Lessor (Details Narrative) - USD ($) | Feb. 12, 2013 | Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 |
Proceeds from promissory notes payable | $ 700,000 | ||||
Promissory Note balance | $ 595,000 | $ 595,000 | |||
Promissory note value | 25,133 | 52,133 | |||
Interest | 14,930 | 31,068 | |||
Promissory Note balance | 572,816 | 572,816 | |||
Accurued interest for debt | $ 12,707 | $ 25,114 | $ 12,707 | $ 25,114 | |
Gain on debt modification | (69,228) | (69,228) | |||
Discount | 63,929 | 63,929 | |||
Amortization of debt discount | $ 3,711 | $ 3,711 | $ (19,405) | ||
First Installment [Member] | March 1, 2017 through February 28, 2019 [Member] | |||||
Notes payable accrued interest rate | 10.00% | 10.00% | |||
Second Installment [Member] | March 1, 2019 through February 28, 2021 [Member] | |||||
Notes payable accrued interest rate | 12.00% | 12.00% | |||
Third Installment [Member] | March 1, 2021 through October 31, 2023 [Member] | |||||
Notes payable accrued interest rate | 15.00% | 15.00% | |||
Through October 15, 2015 [Member] | |||||
Notes payable accrued interest rate | 10.00% | ||||
Through October 31, 2017 [Member] | |||||
Notes payable accrued interest rate | 12.00% | ||||
Through October 31, 2023 [Member] | |||||
Notes payable accrued interest rate | 15.00% |
Private Placement Offerings (De
Private Placement Offerings (Details Narrative) - USD ($) | Apr. 24, 2015 | Mar. 31, 2015 | Mar. 06, 2015 | Feb. 17, 2015 | Jan. 15, 2015 | Apr. 30, 2014 | Jun. 28, 2015 | Mar. 29, 2015 |
Private Placement [Memebr] | ||||||||
Number of common stock issued for cash | $ 165,000 | $ 86,000 | $ 30,000 | $ 4,000 | ||||
Number of common stock issued for cash, shares | 1,100,000 | 553,333 | 200,000 | 13,333 | ||||
Offering cost | $ 22,936 | $ 22,936 | ||||||
WestPark [Member] | ||||||||
Number of warrants granted | 97,099 | 64,373 | ||||||
Warrants expense | $ 19,567 | $ 19,211 | ||||||
Private Placement [Memebr] | West Park Capital Inc [Member] | Private Placement Engagement Agreement [Member] | ||||||||
Percentage of transaction value will be compensated for all equity related transaction | 10.00% | |||||||
Percentage of debt placement for subordinated debt | 5.00% | |||||||
Percentage of debt on senior debt placement | 2.50% | |||||||
Percentage of credit enhancement | 0.50% | |||||||
Percentage of transaction value for all general solicitation of the company | 5.00% | |||||||
Number of warrants years for the purpose of an equity interest | 7 years | |||||||
Percentage of outstanding shares | 3.00% | |||||||
Warrant nominal exercise price per share | $ 0.1 | |||||||
Private Placement [Memebr] | West Park Capital Inc [Member] | Private Placement Engagement Agreement [Member] | Maximum [Member] | ||||||||
Funds raised | $ 2,000,000 | |||||||
Percentage of prorated rate | 3.00% |
Stockholders' Deficit (Details
Stockholders' Deficit (Details Narrative) - USD ($) | May. 27, 2015 | May. 24, 2015 | Apr. 24, 2015 | Apr. 09, 2015 | Apr. 02, 2015 | Mar. 31, 2015 | Mar. 11, 2015 | Mar. 09, 2015 | Feb. 10, 2015 | Jan. 26, 2015 | Jan. 19, 2015 | Dec. 31, 2014 | Jun. 28, 2015 | Jun. 28, 2015 | Dec. 28, 2014 | Sep. 17, 2004 |
Common stock, shares authorized | 1,125,000,000 | 1,125,000,000 | 1,125,000,000 | 1,125,000,000 | ||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||
Common stock, shares issued | 38,958,413 | 38,958,413 | 33,563,830 | |||||||||||||
Common stock, shares outstanding | 38,958,413 | 38,958,413 | 33,563,830 | |||||||||||||
Number of shares issued for settlement of stock payable, shares | 864,649 | |||||||||||||||
Number of shares issued for settlement of stock payable | $ 378,941 | |||||||||||||||
Employee as additional compensation, shares | 50,000 | |||||||||||||||
Employee as additional compensation | $ 13,500 | |||||||||||||||
Stock issued during period for services, shares | 75,000 | |||||||||||||||
Stock issued during period for services | $ 13,500 | |||||||||||||||
Prepaid expenses | $ 72,333 | 72,333 | ||||||||||||||
Non employee stock compensation | $ 51,667 | |||||||||||||||
Number of common stock issued during period | 150,000 | |||||||||||||||
Fair market value of share issued | $ 42,300 | |||||||||||||||
Private Placement [Memebr] | ||||||||||||||||
Number of common stock issued during period | 1,833,333 | |||||||||||||||
Proceeds from sale of shares | $ 275,000 | |||||||||||||||
Offering cost | $ 22,936 | $ 22,936 | ||||||||||||||
Third Party [Member] | ||||||||||||||||
Number of shares issued for settlement accounts payable, shares | 22,500 | 20,000 | 80,768 | |||||||||||||
Number of shares issued for settlement accounts payable | $ 3,600 | $ 7,000 | $ 31,390 | |||||||||||||
Accounts payable | 4,125 | 4,000 | 16,093 | |||||||||||||
Loss on settlement of payable | $ 525 | $ 3,000 | 15,297 | |||||||||||||
Stock issued during period for settlement of debt | $ 110,000 | |||||||||||||||
Stock issued during period for settlements of stock payable | 733,333 | |||||||||||||||
Number of shares issued for settlement of law suit, shares | 50,000 | |||||||||||||||
Number of shares issued for settlement of law suit | $ 26,438 | |||||||||||||||
Number of shares issued for settlement of stock payable, shares | 70,000 | |||||||||||||||
Number of shares issued for settlement of stock payable | $ 20,183 | |||||||||||||||
Stock issued during period for services, shares | 400,000 | |||||||||||||||
Stock issued during period for services | $ 124,000 | $ 4,900 | ||||||||||||||
Third Party [Member] | July 6, 2015 [Member] | ||||||||||||||||
Number of shares issued for settlement accounts payable, shares | 23,333 | |||||||||||||||
Number of shares issued for settlement accounts payable | $ 4,433 | |||||||||||||||
Third Party [Member] | July 6, 2015 [Member] | ||||||||||||||||
Number of shares issued for settlement accounts payable, shares | 250,000 | |||||||||||||||
Number of shares issued for settlement accounts payable | $ 35,250 | |||||||||||||||
Investors [Member] | ||||||||||||||||
Stock issued during period for services, shares | 560,000 | |||||||||||||||
Stock issued during period for services | $ 100,800 | |||||||||||||||
Number of common stock issued during period | 1,833,333 | |||||||||||||||
Proceeds from sale of shares | $ 84,000 |
Stock Options and Warrants (Det
Stock Options and Warrants (Details Narrative) None in scaling factor is -9223372036854775296 | 6 Months Ended |
Jun. 28, 2015shares | |
Stock Options And Warrants Details Narrative | |
Option granted during period |
Stock Options and Warrants - Su
Stock Options and Warrants - Summary of Changes in Options Outstanding (Details) - Jun. 28, 2015 - $ / shares | Total |
Number of Options, Outstanding | 135,000 |
Weighted Average Remaining Contractual Life | 2 years 7 months 6 days |
Number of Options, Exercisable | 135,000 |
Range 1 [Member] | |
Range of Exercise Prices | $ 4.50 |
Number of Options, Outstanding | 135,000 |
Weighted Average Exercise Price | $ 4.50 |
Weighted Average Remaining Contractual Life | 2 years 7 months 6 days |
Number of Options, Exercisable | 135,000 |
Weighted Average Exercise Price, Exercisable | $ 4.50 |
Stock Options and Warrants - 46
Stock Options and Warrants - Summary of Stock Awards for Options (Details) - 6 months ended Jun. 28, 2015 - $ / shares | Total |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options, Outstanding, Beginning balance | 135,000 |
Stock Options, Granted | |
Stock Options, Exercised | |
Stock Options, Expired/Cancelled | |
Stock Options, Outstanding, Ending balance | 135,000 |
Stock Options, Exercisable | 135,000 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ 4.50 |
Weighted Average Exercise Price, Granted | |
Weighted Average Exercise Price, Exercised | |
Weighted Average Exercise Price, Expired/Cancelled | |
Weighted Average Exercise Price, Outstanding, Ending balance | $ 4.50 |
Weighted Average Exercise Price, Exercisable | $ 4.50 |
Stock Options and Warrants - We
Stock Options and Warrants - Weighted-Average Fair Value of Stock Options Granted to Employees (Details) - $ / shares | 6 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Risk-free interest rate at grant date | 0.78% | |
Expected stock price volatility | 139.00% | |
Expected dividend payout | ||
Expected option life (in years) | 7 years | 5 years |
Expected forfeiture rate | ||
Fair value per share of options granted | $ 3.96 | |
Maximum [Member] | ||
Risk-free interest rate at grant date | 1.53% | |
Expected stock price volatility | 331.00% | |
Fair value per share of options granted | $ 0.27 | |
Minimum [Member] | ||
Risk-free interest rate at grant date | 2.04% | |
Expected stock price volatility | 335.00% | |
Fair value per share of options granted | $ 0.32 |
Stock Options and Warrants - Sc
Stock Options and Warrants - Schedule of Changes in Warrants Outstanding (Details) - Jun. 28, 2015 - $ / shares | Total |
Warrants, Outstanding | 539,982 |
Warrants, Weighted Average Remaining Contractual Life | 5 years 5 months 9 days |
Warrants, Number, Exercisable | 539,982 |
Warrants [Member] | |
Warrants, Range of Exercise Prices | $ 0.37 |
Warrants, Outstanding | 162,162 |
Warrants, Weighted Average Exercise Price | $ .37 |
Warrants, Weighted Average Remaining Contractual Life | 3 years 9 months 15 days |
Warrants, Number, Exercisable | 162,162 |
Warrants, Weighted Average Exercise Price, Exercisable | $ .37 |
Warrants Two [Member] | |
Warrants, Range of Exercise Prices | $ 0.01 |
Warrants, Outstanding | 377,820 |
Warrants, Weighted Average Exercise Price | $ 0.01 |
Warrants, Weighted Average Remaining Contractual Life | 6 years 4 months 17 days |
Warrants, Number, Exercisable | 377,820 |
Warrants, Weighted Average Exercise Price, Exercisable | $ 0.01 |
Stock Option and Warrants - Sch
Stock Option and Warrants - Schedule of Stock Warrants Activity (Details) - 6 months ended Jun. 28, 2015 - Warrants [Member] - $ / shares | Total |
Warrants, Outstanding, Beginning balance | 378,510 |
Warrants, Granted | 161,472 |
Warrants, Exercised | |
Warrants, Expired/Cancelled | |
Warrants, Outstanding, Ending balance | 539,982 |
Warrants, Exercisable | 539,982 |
Weighted Average Exercise Price, Outstanding, Beginning | $ 0.16 |
Weighted Average Exercise Price, Granted | $ 0.01 |
Weighted Average Exercise Price, Exercised | |
Weighted Average Exercise Price, Expired/Cancelled | |
Weighted Average Exercise Price, Outstanding, Ending | $ 0.12 |
Warrants Exercisable, price | $ 0.12 |
Stock Options and Warrants - 50
Stock Options and Warrants - Weighted-Average Fair Value of Stock Options Granted to Third Parties (Details) - $ / shares | 6 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Risk-free interest rate at grant date | 0.78% | |
Expected stock price volatility | 139.00% | |
Expected dividend payout | ||
Expected option life (in years) | 7 years | 5 years |
Expected forfeiture rate | ||
Fair value per share of options granted | $ 3.96 | |
Third Party [Member] | ||
Risk-free interest rate at grant date | 0.78% | |
Expected stock price volatility | 139.00% | |
Expected dividend payout | ||
Expected option life (in years) | 7 years | 5 years |
Expected forfeiture rate | ||
Fair value per share of options granted | $ 3.96 | |
Maximum [Member] | ||
Risk-free interest rate at grant date | 1.53% | |
Expected stock price volatility | 331.00% | |
Fair value per share of options granted | $ 0.27 | |
Maximum [Member] | Third Party [Member] | ||
Risk-free interest rate at grant date | 1.53% | |
Expected stock price volatility | 331.00% | |
Fair value per share of options granted | $ 0.27 | |
Minimum [Member] | ||
Risk-free interest rate at grant date | 2.04% | |
Expected stock price volatility | 335.00% | |
Fair value per share of options granted | $ 0.32 | |
Minimum [Member] | Third Party [Member] | ||
Risk-free interest rate at grant date | 2.04% | |
Expected stock price volatility | 335.00% | |
Fair value per share of options granted | $ .32 |
Commitments and Contingencies51
Commitments and Contingencies (Details Narrative) | Jan. 19, 2015shares | Oct. 20, 2014shares | Apr. 02, 2013USD ($)ft² | Jun. 28, 2015USD ($) | Jun. 29, 2014USD ($) | Jun. 28, 2015USD ($)shares | Jun. 29, 2014USD ($) | Dec. 31, 2012USD ($)ft² |
Issuance of unrestricted common stock shares to related of settlement | shares | 50,000 | |||||||
Restricted Stock [Member] | ||||||||
Issuance of the remaining yet to be determined | shares | 97,500 | |||||||
Attorney Fees [Member] | ||||||||
Restricted stock issued during period for settlement | shares | 52,500 | |||||||
Law Group [Member] | ||||||||
Agreed to issuance of unrestricted common stock | shares | 140,000 | |||||||
Payment of attorneys fees | $ 116,000 | |||||||
Preferred Scan [Member] | ||||||||
Agreed to issuance of unrestricted common stock | shares | 20,000 | |||||||
Restricted stock issued during period for settlement | shares | 150,000 | |||||||
Payment of litigation settlement | $ 20,000 | |||||||
Maximum [Member] | ||||||||
Percentage of common stock share issued to settlement | 1.00% | |||||||
Century City [Member] | ||||||||
Remaining restaurant operating lease, term | 10 years | |||||||
Rent expense | $ 34,767 | $ 34,766 | $ 69,533 | $ 69,532 | ||||
Century City [Member] | Minimum [Member] | ||||||||
Percentage of sales range | 7.00% | |||||||
Century City [Member] | Maximum [Member] | ||||||||
Percentage of sales range | 10.00% | |||||||
Westfield Topanga Owner, LP [Member] | ||||||||
Number of square feet for operating lease | ft² | 5,900 | |||||||
Topanga [Member] | ||||||||
Rent expense | 51,873 | 51,873 | $ 103,745 | 103,745 | ||||
Construction reimbursement allowance | $ 489,770 | |||||||
Expiration date of Lease | Apr. 30, 2022 | |||||||
Topanga [Member] | Minimum [Member] | ||||||||
Percentage of sales range | 7.00% | |||||||
Topanga [Member] | Maximum [Member] | ||||||||
Percentage of sales range | 10.00% | |||||||
Glendale II Mall Associates, LLC [Member] | ||||||||
Rent expense | $ 44,064 | $ 45,867 | $ 88,128 | $ 91,734 | ||||
Number of square feet for operating lease | ft² | 6,000 | |||||||
Construction reimbursement allowance | $ 475,000 | |||||||
Expiration date of Lease | Oct. 31, 2023 | |||||||
Glendale II Mall Associates, LLC [Member] | Minimum [Member] | ||||||||
Percentage of sales range | 4.00% | |||||||
Glendale II Mall Associates, LLC [Member] | Maximum [Member] | ||||||||
Percentage of sales range | 7.00% |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Aggregate Minimum Annual Lease Payments Under Operating Leases (Details) | Jun. 28, 2015USD ($) |
Century City [Member] | |
2,015 | $ 100,485 |
2,016 | 206,498 |
2,017 | 212,692 |
2,018 | 219,073 |
2,019 | 225,645 |
Thereafter | 38,265 |
Total | 1,002,658 |
Topanga [Member] | |
2,015 | 119,461 |
2,016 | 247,682 |
2,017 | 257,589 |
2,018 | 267,891 |
2,019 | 278,606 |
Thereafter | 694,884 |
Total | 1,866,113 |
Glendale II Mall Associates, LLC [Member] | |
2,015 | 98,877 |
2,016 | 203,648 |
2,017 | 211,794 |
2,018 | 220,266 |
2,019 | 229,077 |
Thereafter | 964,800 |
Total | $ 1,928,462 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Jul. 06, 2015 | Jul. 06, 2015 | Feb. 10, 2015 |
Number of shares issued for settlement of stock payable, shares | 864,649 | ||
Number of shares issued for settlement of stock payable | $ 378,941 | ||
Subsequent Event [Member] | |||
Number of shares issued for settlement of stock payable, shares | 250,000 | 23,333 | |
Number of shares issued for settlement of stock payable | $ 35,250 | $ 4,433 |