Giggles N' Hugs (GIGL) 10-Q 20 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 20, 2019
Document And Entity Information
Entity Registrant Name	Giggles N' Hugs, Inc.
Entity Central Index Key	0001381435
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-29
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		168,924,080
Trading Symbol	GIGL
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2019	Dec. 30, 2018
Current assets:
Cash and equivalents	$ 28,599	$ 57,642
Inventory	23,349	23,860
Prepaid expenses, other	17,219	22,458
Total current assets	69,167	103,960
Property and Equipment, net of accumulated depreciation and amortization of $1,761,112 and $1,708,865	455,597	507,844
Other assets	2,620	2,620
Right of use asset, net	865,713
Total assets	1,393,097	614,424
Current liabilities:
Accounts payable	621,713	621,454
Incentive from lessor - current portion		117,460
Note Payable - lessor, in default	420,881	420,881
Accrued expenses	137,391	157,368
Accrued officers salary	477,291	466,541
Current portion of lease liability	316,057
Deferred revenue	19,925	16,964
Convertible note payable	50,000	50,000
Total current liabilities	2,043,258	1,850,668
Long-term liabilities:
Incentive from lessor - long-term		433,379
Deferred gain	315,282	332,478
Lease liability	1,099,119
Total long-term liabilities	1,414,401	765,857
Total liabilities	3,457,659	2,616,525
Commitments and contingencies
Stockholders' deficit:
Common stock, $0.001 par value, 1,125,000,000 shares authorized, 168,774,080 and 168,424,080 shares issued and outstanding as of March 31, 2019 and December 30, 2018, respectively	168,774	168,424
Common stock issuable (1,397,619 shares as of March 31, 2019 and December 30, 2018, respectively)	293,535	293,535
Additional paid-in capital	10,524,054	10,458,959
Accumulated deficit	(13,050,925)	(12,923,019)
Total stockholders' deficit	(2,064,562)	(2,002,101)
Total liabilities and stockholders' deficit	$ 1,393,097	$ 614,424

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2019	Dec. 30, 2018
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization	$ 1,761,112	$ 1,708,865
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,125,000,000	1,125,000,000
Common stock, shares issued	168,774,080	168,424,080
Common stock, shares outstanding	168,774,080	168,424,080
Common stock issuable, shares	1,397,619	1,397,619

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Revenue
Net sales	$ 699,226	$ 613,363
Costs and operating expenses
Cost of operations	495,662	499,677
General and administrative expenses	268,786	278,226
Depreciation and amortization	52,247	61,635
Total operating expenses	816,695	839,538
Loss from Operations	(117,469)	(226,175)
Other expenses:
Loss on settlement		(1,000)
Finance and interest expense	(10,437)	(14,390)
Net loss	$ (127,906)	$ (241,565)
Net loss per share - basic and diluted	$ 0	$ 0
Weighted average number of common shares outstanding - basic and diluted	168,511,580	146,989,918

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid in Capital [Member]	Common Stock Issuable [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017	$ 145,602	$ 9,874,936	$ 293,535	$ (12,231,650)	$ (1,917,577)
Balance, shares at Dec. 31, 2017	145,602,251
Shares issued for employees compensation	$ 200	4,400			4,600
Shares issued for employees compensation, shares	200,000
Shares issued to settle accounts payable	$ 1,000	35,000			36,000
Shares issued to settle accounts payable, shares	1,000,000
Shares issued for professional services	$ 530	10,550			11,080
Shares issued for professional services, shares	530,000
Net loss				(241,565)	(241,565)
Balance at Apr. 01, 2018	$ 147,332	9,924,886	293,535	(12,473,215)	(2,107,462)
Balance, shares at Apr. 01, 2018	147,332,251
Balance at Dec. 30, 2018	$ 168,424	10,458,959	293,535	(12,923,019)	(2,002,101)
Balance, shares at Dec. 30, 2018	168,424,080
Shares issued for employees compensation	$ 50	300			350
Shares issued for employees compensation, shares	50,000
Shares issued for professional services	$ 300	1,800			2,100
Shares issued for professional services, shares	300,000
Warrants granted		62,995			62,995
Net loss				(127,906)	(127,906)
Balance at Mar. 31, 2019	$ 168,774	$ 10,524,054	$ 293,535	$ (13,050,925)	$ (2,064,562)
Balance, shares at Mar. 31, 2019	168,774,080

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Cash flows from operating activities
Net loss	$ (127,906)	$ (241,565)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	52,247	61,635
Stock-based compensation	350	4,600
Loss on stock issuance for payable settlement		1,000
Shares issued for services	2,100	11,080
Amortization of deferred gain	(17,196)	(17,196)
Value of warrants issued for services	62,995
Changes in operating assets and liabilities:
Decrease in prepaid expenses and deposits	5,239	8,422
Decrease (increase) in inventory	511	(2,368)
Amortization of right of use asset	46,283
Increase in accounts payable	259	96,312
Decrease in lease incentive liability		(24,514)
Decrease in accrued expenses	(9,227)	97,678
Increase in deferred revenue	2,961	8,189
Decrease in lease liability	(47,659)
Net cash provided by (used in) operating activities	(29,043)	3,273
NET INCREASE (DECREASE) IN CASH	(29,043)	3,273
CASH AT BEGINNING OF PERIOD	57,642	131,336
CASH AT END OF PERIOD	28,599	134,609
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Shares issued to settle accounts payable		36,000
Increase in right of use asset and lease liability upon adoption of ASC 842	1,462,835
Adjustment of lease incentive and right of use asset upon adoption of ASC 842	$ 550,839

History and Organization

History and Organization	3 Months Ended
	Mar. 31, 2019
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 Teacher’s 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. 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. For accounting purposes, the acquisition of GNH by GIGL Inc. has been recorded as a reverse merger. Giggles N’ Hugs restaurant concept brings together high-end, organic food with the play elements and entertainment for children. Giggles N’ Hugs offers an upscale, family-friendly atmosphere with a play area dedicated to children ages 10 and younger with nightly entertainment, such as magic shows, concerts, puppet shows, as well as activities and games which include face painting, dance parties, karaoke, and arts and crafts, The Company adopted a 52/53 week fiscal year ending on the Sunday closest to December 31 st

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2019
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 (GAAP) 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 30, 2018 and notes thereto included in the Company’s annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports. The condensed consolidated balance sheet as of December 30, 2018 included herein was derived from the audited consolidated financial statements as of that date, but does not included all disclosures, including notes, required by GAAP. Results of operations for the interim periods may not be indicative of annual results.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Going Concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying condensed consolidated financial statements, during the thirteen weeks ended March 31, 2019, the Company incurred a net loss of $127,906, used cash in operations of $29,043, and had a stockholders’ deficit of $2,064562 as of that date. In addition, the note payable to the Company’s landlord was in default. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to raise additional funds and implement its business plan. In addition, the Company’s independent registered public accounting firm in its report on the December 30, 2018 financial statements has raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company had cash on hand in the amount of $28,599 as of March 31, 2019. Management estimates that the current funds on hand will be sufficient to continue operations through July 31, 2019. Management is currently seeking additional funds, primarily through the issuance of debt and equity securities for cash to operate our business. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company can obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stock holders, in case or equity financing. Principles of Consolidation The condensed consolidated financial statements include the accounts of Giggles N’ Hugs, Inc., GNH, Inc., GNH CC, Inc. for restaurant operations in Westfield Mall in Century City, California (which was closed June 30, 2016 due to a complete remodel of the Mall), 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. Intercompany balances and transactions have been eliminated. Giggles N’ Hugs, Inc., GNH, Inc., GNH CC, 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 revenues and expenses during the reporting period. Estimates and assumptions used by management including assumptions made in impairment analysis of fixed assets, accruals of potential liabilities, valuation of derivative liabilities and equity securities issued for services and realization of deferred tax assets. Actual results could differ from those estimates. Revenue The Company recognizes revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (ASC 606). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which includes (1) identifying the contract(s) or agreement(s) with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. Under ASC 606, revenue is recognized when performance obligations under the terms of a contract are satisfied, which occurs for the Company upon shipment or delivery of products or services to our customers based on written sales terms, which is also when control is transferred. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring the products or services to a customer. Leases Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. The adoption of ASC 842 on January 1, 2019 resulted in the recognition of operating lease right-of-use assets of $911,966 and, liabilities for operating leases of $1,462,835. As part of the entry to record the lease liability, the Company removed approximate $133,833 of deferred rent and $417,000 of landlord lease incentives that existed as of December 31, 2018. There was no cumulative-effect adjustment to accumulated deficit necessary. See Note 9 for further information regarding the adoption of ASC 842. 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 options and warrants. Loss per common share has been computed using the weighted average number of common shares outstanding during the year. For the period ended March 31, 2019, the assumed conversion of convertible notes payable and the exercise of 52,964,917 stock warrants, and 115,000 options to acquire shares of common stock are anti-dilutive due to the Company’s net losses and are excluded in determining diluted loss per share. Stock-based Compensation The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board whereas the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board (FASB) whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested, and the total stock-based compensation charge is recorded in the period of the measurement date. The fair value of the Company’s stock option and warrant grants is estimated using the Black-Scholes Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes Option Pricing model could materially affect compensation expense recorded in future periods. The Company also issues restricted shares of its common stock for share-based compensation programs to employees and non-employees. The Company measures the compensation cost with respect to restricted shares to employees based upon the estimated fair value at the date of the grant, and is recognized as expense over the period, which an employee is required to provide services in exchange for the award. For non-employees, the Company measures the compensation cost with respect to restricted shares based upon the estimated fair value at the measurement date which is either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Recent Accounting Standards Recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 4 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following at: March 31, 2019 December 30, 2018 Leasehold improvements $ 1,889,027 $ 1,889,027 Fixtures and equipment 60,310 60,310 Computer software and equipment 267,372 267,372 Property and equipment, total 2,216,709 2,216,709 Less: accumulated depreciation (1,761,112 ) (1,708,865 ) Property and equipment, net $ 455,597 $ 507,844 Depreciation and amortization expense for the thirteen weeks ended March 31, 2019 and April 1, 2018 was $52,247 and $61,635, respectively. Repair and maintenance expense for the thirteen weeks ended March 31, 2019 and April 1, 2018 were $12,551 and $15,560, respectively. Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. For the periods ended March 31, 2019 and December 30, 2018, there were no indications of impairment based on management’s assessment of these assets.

Note Payable from Lessor - In D

Note Payable from Lessor - In Default	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Note Payable from Lessor - In Default	NOTE 5 – NOTE PAYABLE FROM LESSOR – In Default 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. On March 1, 2015, the Company and the lender renegotiated the terms of the Promissory Note and agreed to a new note with a principal balance due of $683,316. As part of the new agreement, the Lender waived principal and interest payments for two years beginning March 1, 2015. On August 12, 2016 the Company entered into a third amendment on its lease at The Glendale Galleria. The amendment covered several areas, including adjustment to percentage rent payable, reduced the minimum rent payable, along with the payment and principal of Promissory Note. The Promissory Note was adjusted to a balance due of $763,261 from $683,316, with no interest, payable in equal monthly instalments of $5,300 through maturity of Note on May 31, 2028. The Company imputed interest using a discount rate of 10% to determine a fair value of the note of $443,521. As of March 31, 2019, and December 30, 2018 the balance of note payable net of unamortized note discount was $420,881 respectively. The lender under the Note is GGP Limited Partnership (GGP). GGP is an affiliate of Glendale II Mall Associates, the lessor of the Company’s Glendale Mall restaurant location. In accordance with the note agreement, an event of default would occur if the Borrower defaults under the lease between the Company and Glendale II Mall Associates. Upon the occurrence of an event of default, the entire balance of the Note payable and accrued interest would become due and payable, and the balance due becomes subject to a default interest rate (which is 5% higher than the defined interest rate). As of March 31, 2019, the Company was delinquent in its payments to GGP under the note, and as such, the Note has been reflected as currently due and disclosed as in default.

Convertible Note Payable

Convertible Note Payable	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Convertible Note Payable	NOTE 6 – CONVERTIBLE NOTE PAYABLE On August 24, 2015, the Company entered into an unsecured Note Payable Agreement with an investor for which the Company issued a $50,000 Convertible Note Payable, which accrues interest at a rate of 5% per annum and matured on August 31, 2016. The Lender may also convert all or a portion of the Note Payable at any time into shares of common stock at a price of $0.10 per share. By oral agreement with the lender, the maturity date was extended, and the note is now considered to be due on demand.

Common Stock

Common Stock	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Common Stock	NOTE 7 – COMMON STOCK Issuance of Common Stock During the thirteen weeks ended March 31, 2019, the Company granted and issued 300,000 shares of restricted common stock with a fair value of $2,100 to a consultant for services. During the thirteen weeks ended March 31, 2019, the Company issued 50,000 shares of common stock at fair value of $350 to an employee for services. Employee Stock Options The following table summarizes the changes in the options outstanding at March 31, 2019, and the related prices for the shares of the Company’s common stock issued to employees of the Company under a non-qualified employee stock option plan. Weighted Average Options Exercise Price Outstanding, December 30, 2018 115,000 $ 0.37 Granted — — Exercised — — Expired/Cancelled — — Outstanding, March 31, 2019 115,000 $ 0.37 Exercisable, March 31, 2019 115,000 $ 0.37 As of March 31, 2019, the stock options had no intrinsic value. There were no options granted during the fiscal quarter ended March 31, 2019, and there was no stock-based compensation expense in connection with options granted to employees. Warrants On January 1, 2019, the Company entered into employee agreements with three individuals. In accordance with the agreements, the employees are to receive warrants of 32,997,000 at an exercise price of $0.0001. A total of 1,000,000 warrants vested immediately and the others that vest over the reminder of the year. The Company calculated the fair value of the warrants to be $230,979 based on the fair value at the date of grant. During the period ended March 31, 2019, the Company amortized $62,995 of this amount as an expense which is included in general and administrative costs on the accompanying statement of operations. As of March 31, 2019 the remaining unamortized balance was $167,984 which will be amortized over the remainder of the year. The following table summarizes the changes in the warrants outstanding at March 31, 2019, and the related prices. A summary of the Company’s warrants as of March 31, 2019 is presented below: Weighted Average Exercise Warrants Price Outstanding, December 30, 2018 19,967,917 $ 0.07 Granted 32,997,000 0.007 Exercised - - Outstanding, March 31, 2019 52,964,917 $ 0.04 Exercisable, March 31, 2019 52,964,917 $ 0.04 Weighted Weighted Average Weighted Range of Average Remaining Average Exercise Number Exercise Contractual Number Exercise Prices Outstanding Price Life Exercisable Price $0.01 ~ $0.37 19,967,917 $ 0.04 2.03 19,967,917 $ 0.72 32,997,000 0.0001 10.00 32,997,000 0.0001 52,964,917 12.03 52,964,917 The intrinsic value of the warrants outstanding as of March 31, 2019 was $167,000.

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	NOTE 8 – LEASES Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases Leases, On August 12, 2016 the Company entered into a third amendment on its lease at The Glendale Galleria. The amendment covered several areas, including adjustment to percentage rent payable, reduced the minimum rent payable and payment and principal of the Promissory Note payable to GGP. The Promissory Note was adjusted to a balance due of $763,262 from $683,316, with zero percent interest, payable in equal monthly instalments of $5,300 through maturity of Note on May 31, 2028, creating a gain on extinguishment of the old note of $220,686. (see Note 5). The change in the payment terms of the lease caused a change in the previously calculated deferred rent of $69,614. For reporting purposes, the Company determined that since the GGP Promissory Note and the related revision of the lease were agreed to at the same time, that the change in the lease payment terms and the reduced rent, and the issuance of the new note are directly related. In addition, past due rent of $164,987 was forgiven. As such the gain on the termination of the note of $220,686, the adjustment to the deferred rent in the aggregate amount of $69,614, and the forgiveness of past due rent of $164,987, resulting in an aggregate gain of $455,287 had been deferred, and is being amortized on the straight-line basis over the remaining life of the lease as an adjustment to rent expense. The balance of the deferred gain was $315,282 as of March 31, 2019. During the period ended March 31, 2019, $17,197 of deferred gain was amortized and offset to rent expense, resulting in a remaining deferred gain balance of $315,282 as of March 31, 2019 which will be amortized as an offset to rent expense over the remainder of the lease. Lease Obligations The Company has operating lease agreements for Topanga and Glendale and with remaining lease terms of 3.8 years and 4.42 years, respectively. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate determined to be 10%, in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and lease incentives were removed. The balance of the right of use asset at March 31, 2019 was $865,713, net of accumulated amortization of $43,929. The following is related to leases for the period: At March 31, 2019 Operating Leases Long-term right-of-use assets, net $ 865,713 Short-term operating lease liabilities $ 316,057 Long-term operating lease liabilities 1,099,119 Total operating lease liabilities $ 1,415,176 The Company’s total lease payment is as follows: 2019 328,889 2020 452,956 2021 469,398 2022 279,077 2023 151,172 Total lease payments 1,681,491 Less: note discount (266,315 ) Present value of lease liabilities $ 1,415,176

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 9 – COMMITMENTS AND CONTINGENCIES Employment Agreements Sean Richards The employment agreement also contains covenants prohibiting Mr. Richards from competing with us during his employment, and from (i) competing with us in California and in any other states where we provide management services relating to our business, (ii) soliciting any of our employees or consultants and (iii) disparaging the Company or any of our officers, directors, employees or agents for a period of two years after his employment ends. The employment agreement also contains customary confidentiality provisions. The employment agreement may be terminated by either party for any reason at any time. Joey Parsi The employment agreement may be terminated by either party for any reason at any time. If Mr. Parsi’s employment is terminated by the Company with or without cause, Mr. Parsi will be entitled to receive a severance payment in the amount of 12 months of his base salary plus all unvested options, warrants and shares. The employment agreement also contains covenants prohibiting Mr. Parsi from disparaging the Company or any of our officers, directors, employees or agents for a period of two years after his employment ends. The employment agreement also contains customary confidentiality provisions. Philip Gay The employment agreement with Mr. Gay also contains customary confidentiality provisions and may be terminated by either party for any reason at any time. Litigation As of March 31, 2019, there was no material outstanding litigation.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	NOTE 10 – SUBSEQUENT EVENTS On April 17, 2019, the Company issued 150,000 common stock for services, with a fair value of $2,550.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Going Concern	Going Concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying condensed consolidated financial statements, during the thirteen weeks ended March 31, 2019, the Company incurred a net loss of $127,906, used cash in operations of $29,043, and had a stockholders’ deficit of $2,064562 as of that date. In addition, the note payable to the Company’s landlord was in default. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to raise additional funds and implement its business plan. In addition, the Company’s independent registered public accounting firm in its report on the December 30, 2018 financial statements has raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company had cash on hand in the amount of $28,599 as of March 31, 2019. Management estimates that the current funds on hand will be sufficient to continue operations through July 31, 2019. Management is currently seeking additional funds, primarily through the issuance of debt and equity securities for cash to operate our business. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company can obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stock holders, in case or equity financing.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Giggles N’ Hugs, Inc., GNH, Inc., GNH CC, Inc. for restaurant operations in Westfield Mall in Century City, California (which was closed June 30, 2016 due to a complete remodel of the Mall), 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. Intercompany balances and transactions have been eliminated. Giggles N’ Hugs, Inc., GNH, Inc., GNH CC, 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 revenues and expenses during the reporting period. Estimates and assumptions used by management including assumptions made in impairment analysis of fixed assets, accruals of potential liabilities, valuation of derivative liabilities and equity securities issued for services and realization of deferred tax assets. Actual results could differ from those estimates.
Revenue	Revenue The Company recognizes revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (ASC 606). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which includes (1) identifying the contract(s) or agreement(s) with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. Under ASC 606, revenue is recognized when performance obligations under the terms of a contract are satisfied, which occurs for the Company upon shipment or delivery of products or services to our customers based on written sales terms, which is also when control is transferred. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring the products or services to a customer.
Leases	Leases Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. The adoption of ASC 842 on January 1, 2019 resulted in the recognition of operating lease right-of-use assets of $911,966 and, liabilities for operating leases of $1,462,835. As part of the entry to record the lease liability, the Company removed approximate $133,833 of deferred rent and $417,000 of landlord lease incentives that existed as of December 31, 2018. There was no cumulative-effect adjustment to accumulated deficit necessary. See Note 9 for further information regarding the adoption of ASC 842.
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 options and warrants. Loss per common share has been computed using the weighted average number of common shares outstanding during the year. For the period ended March 31, 2019, the assumed conversion of convertible notes payable and the exercise of 52,964,917 stock warrants, and 115,000 options to acquire shares of common stock are anti-dilutive due to the Company’s net losses and are excluded in determining diluted loss per share.
Stock-Based Compensation	Stock-based Compensation The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board whereas the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board (FASB) whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested, and the total stock-based compensation charge is recorded in the period of the measurement date. The fair value of the Company’s stock option and warrant grants is estimated using the Black-Scholes Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes Option Pricing model could materially affect compensation expense recorded in future periods. The Company also issues restricted shares of its common stock for share-based compensation programs to employees and non-employees. The Company measures the compensation cost with respect to restricted shares to employees based upon the estimated fair value at the date of the grant, and is recognized as expense over the period, which an employee is required to provide services in exchange for the award. For non-employees, the Company measures the compensation cost with respect to restricted shares based upon the estimated fair value at the measurement date which is either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete.
Recent Accounting Standards	Recent Accounting Standards Recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following at: March 31, 2019 December 30, 2018 Leasehold improvements $ 1,889,027 $ 1,889,027 Fixtures and equipment 60,310 60,310 Computer software and equipment 267,372 267,372 Property and equipment, total 2,216,709 2,216,709 Less: accumulated depreciation (1,761,112 ) (1,708,865 ) Property and equipment, net $ 455,597 $ 507,844

Common Stock (Tables)

Common Stock (Tables)	3 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Summary of Stock Awards for Options	The following table summarizes the changes in the options outstanding at March 31, 2019, and the related prices for the shares of the Company’s common stock issued to employees of the Company under a non-qualified employee stock option plan. Weighted Average Options Exercise Price Outstanding, December 30, 2018 115,000 $ 0.37 Granted — — Exercised — — Expired/Cancelled — — Outstanding, March 31, 2019 115,000 $ 0.37 Exercisable, March 31, 2019 115,000 $ 0.37
Schedule of Stock Warrants Activity	A summary of the Company’s warrants as of March 31, 2019 is presented below: Weighted Average Exercise Warrants Price Outstanding, December 30, 2018 19,967,917 $ 0.07 Granted 32,997,000 0.007 Exercised - - Outstanding, March 31, 2019 52,964,917 $ 0.04 Exercisable, March 31, 2019 52,964,917 $ 0.04
Schedule of Stock Warrants Outstanding	Weighted Weighted Average Weighted Range of Average Remaining Average Exercise Number Exercise Contractual Number Exercise Prices Outstanding Price Life Exercisable Price $0.01 ~ $0.37 19,967,917 $ 0.04 2.03 19,967,917 $ 0.72 32,997,000 0.0001 10.00 32,997,000 0.0001 52,964,917 12.03 52,964,917

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of Leases	The following is related to leases for the period: At March 31, 2019 Operating Leases Long-term right-of-use assets, net $ 865,713 Short-term operating lease liabilities $ 316,057 Long-term operating lease liabilities 1,099,119 Total operating lease liabilities $ 1,415,176
Schedule of Total Lease Payment	The Company’s total lease payment is as follows: 2019 328,889 2020 452,956 2021 469,398 2022 279,077 2023 151,172 Total lease payments 1,681,491 Less: note discount (266,315 ) Present value of lease liabilities $ 1,415,176

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Jan. 02, 2019	Dec. 30, 2018	Dec. 31, 2017
Net loss	$ (127,906)	$ (241,565)
Net cash used in operating activities	(29,043)	3,273
Stockholders' deficit	(2,064,562)	(2,107,462)		$ (2,002,101)	$ (1,917,577)
Cash and equivalents	28,599	$ 134,609		57,642	$ 131,336
Operating lease right-of-use assets	865,713
Liabilities for operating leases	1,415,176
Deferred rent			$ 133,833
Landlord lease incentives			417,000	$ 433,379
Warrant [Member]
Anti-dilutive securities	52,964,917
Options to Acquire Shares of Common Stock [Member]
Anti-dilutive securities	115,000
ASU 2016-02 [Member]
Operating lease right-of-use assets			911,966
Liabilities for operating leases			$ 1,462,835

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 52,247	$ 61,635
Repair and maintenance expenses	$ 12,551	$ 15,560

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)	Mar. 31, 2019	Dec. 30, 2018
Property, Plant and Equipment [Abstract]
Leasehold improvements	$ 1,889,027	$ 1,889,027
Fixtures and equipment	60,310	60,310
Computer software and equipment	267,372	267,372
Property and equipment, total	2,216,709	2,216,709
Less: accumulated depreciation	(1,761,112)	(1,708,865)
Property and equipment, net	$ 455,597	$ 507,844

Note Payable from Lessor - In_2

Note Payable from Lessor - In Default (Details Narrative) - USD ($)	Aug. 12, 2016	Mar. 31, 2019	Dec. 30, 2018	Mar. 01, 2015	Feb. 12, 2013
Promissory note principal balance		$ 420,881	$ 420,881
Glendale II Mall Associates, LLC [Member]
Promissory notes payable face value	$ 683,316
Notes payable accrued interest rate	0.00%
Repayment of debt, periodic payment	$ 5,300
Debt maturity date	May 31, 2028
Imputed interest discount rate	10.00%
Fair value of note payable	$ 443,521
Minimum default interest rate	5.00%
Glendale II Mall Associates, LLC [Member] | Adjusted Balance [Member]
Promissory notes payable face value	$ 763,261
Promissory Note Payable Agreement [Member] | GGP Limited Partnership [Member]
Promissory notes payable face value					$ 700,000
Promissory note principal balance				$ 683,316

Convertible Note Payable (Detai

Convertible Note Payable (Details Narrative) - Unsecured Note Payable Agreement [Member]	Aug. 24, 2015USD ($)$ / shares
Convertible note payable face amount | $	$ 50,000
Convertible note payable interest rate	5.00%
Debt maturity date	Aug. 31, 2016
Convertible note payable conversion price per share | $ / shares	$ 0.10

Common Stock (Details Narrative

Common Stock (Details Narrative)	3 Months Ended
	Mar. 31, 2019USD ($)$ / sharesshares
Stock options intrinsic value
Stock options, granted | shares
Stock-based compensation expense
Intrinsic value of warrants outstanding	$ 167,000
Employeement Agreement [Member]
Number of warrants to be issued | shares	32,997,000
Warrant exercisable price per share | $ / shares	$ 0.0001
Warrants vested shares | shares	1,000,000
Fair value of warrants	$ 230,979
Warrants amortized amount	62,995
Warrants unamortized amount	$ 167,984
Consultant [Member]
Shares issued during period restricted shares | shares	300,000
Shares issued during period restricted shares, value	$ 2,100
Employee [Member]
Shares issued during period | shares	50,000
Shares issued during period, value	$ 350

Common Stock - Summary of Stock

Common Stock - Summary of Stock Awards for Options (Details)	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Equity [Abstract]
Stock Options, Outstanding, Beginning balance | shares	115,000
Stock Options, Granted | shares
Stock Options, Exercised | shares
Stock Options, Expired/Cancelled | shares
Stock Options, Outstanding, Ending balance | shares	115,000
Stock Options, Exercisable | shares	115,000
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares	$ 0.37
Weighted Average Exercise Price, Granted | $ / shares
Weighted Average Exercise Price, Exercised | $ / shares
Weighted Average Exercise Price, Expired/Cancelled | $ / shares
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares	0.37
Weighted Average Exercise Price, Exercisable | $ / shares	$ 0.37

Common Stock - Schedule of Stoc

Common Stock - Schedule of Stock Warrants Activity (Details)	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Equity [Abstract]
Warrants, Outstanding, Beginning balance | shares	19,967,917
Warrants, Granted | shares	32,997,000
Warrants, Exercised | shares
Warrants, Outstanding, Ending balance | shares	52,964,917
Warrants, Exercisable | shares	52,964,917
Weighted Average Exercise Price, Outstanding, Beginning | $ / shares	$ 0.07
Weighted Average Exercise Price, Granted | $ / shares	0.007
Weighted Average Exercise Price, Exercised | $ / shares
Weighted Average Exercise Price, Outstanding, Ending | $ / shares	0.04
Weighted Average Exercise Price, Exercisable | $ / shares	$ 0.04

Common Stock - Schedule of St_2

Common Stock - Schedule of Stock Warrants Outstanding (Details) - Warrant [Member]	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Number of Options, Outstanding | shares	52,964,917
Weighted Average Remaining Contractual Life	12 years 11 days
Number of Options, Exercisable | shares	52,964,917
Range 1 [Member]
Range of Exercise Prices, Lower Range Limit | $ / shares	$ 0.01
Range of Exercise Prices, Upper Range Limit | $ / shares	$ 0.37
Number of Options, Outstanding | shares	19,967,917
Weighted Average Exercise Price | $ / shares	$ 0.04
Weighted Average Remaining Contractual Life	2 years 11 days
Number of Options, Exercisable | shares	19,967,917
Weighted Average Exercise Price, Exercisable | $ / shares	$ 0.72
Range 2 [Member]
Number of Options, Outstanding | shares	32,997,000
Weighted Average Exercise Price | $ / shares	$ 0.0001
Weighted Average Remaining Contractual Life	10 years
Number of Options, Exercisable | shares	32,997,000
Weighted Average Exercise Price, Exercisable | $ / shares	$ 0.0001

Leases (Details Narrative)

Leases (Details Narrative) - USD ($)	Aug. 12, 2016	Mar. 31, 2019	Mar. 31, 2019	Apr. 01, 2018	Jan. 02, 2019	Dec. 30, 2018
Operating lease right-of-use assets		$ 865,713	$ 865,713
Liabilities for operating leases		1,415,176	1,415,176
Deferred rent					$ 133,833
Landlord lease incentives					417,000	$ 433,379
Gain on extinguishment of old note				$ (1,000)
Accumulated amortization		$ 43,929
Operating Lease Agreements [Member]
Incremental borrowing, description		Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate determined to be 10%, in determining the present value of lease payments.
Operating Lease Agreements [Member] | Topanga [Member]
Operating lease, remaining lease terms		3 years 9 months 18 days	3 years 9 months 18 days
Operating Lease Agreements [Member] | Glendale [Member]
Operating lease, remaining lease terms		4 years 5 months 1 day	4 years 5 months 1 day
Glendale II Mall Associates, LLC [Member]
Promissory notes payable face value	$ 683,316
Notes payable accrued interest rate	0.00%
Repayment of debt, periodic payment	$ 5,300
Debt maturity date	May 31, 2028
Gain on extinguishment of old note	$ 220,686
Change in deferred rent past due	69,614
Deferred rent past due, forgiveness	164,987
Gain on termination of note	220,686
Deferred gain remaining balance	455,287		$ 315,282
Deferred gain amortized and offset to rent expense			$ 17,197
Glendale II Mall Associates, LLC [Member] | Adjusted Balance [Member]
Promissory notes payable face value	$ 763,261
ASU 2016-02 [Member]
Operating lease right-of-use assets					911,966
Liabilities for operating leases					$ 1,462,835

Leases - Schedule of Leases (De

Leases - Schedule of Leases (Details) - USD ($)	Mar. 31, 2019	Dec. 30, 2018
Leases [Abstract]
Long-term right-of-use assets, net	$ 865,713
Short-term operating lease liabilities	316,057
Long-term operating lease liabilities	1,099,119
Total operating lease liabilities	$ 1,415,176

Leases - Schedule of Total Leas

Leases - Schedule of Total Lease Payment (Details)	Mar. 31, 2019USD ($)
Leases [Abstract]
2019	$ 328,889
2020	452,956
2021	469,398
2022	279,077
2023	151,172
Total lease payments	1,681,491
Less: note discount	(266,315)
Present value of lease liabilities	$ 1,415,176

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - Employeement Agreement [Member] - USD ($)	Jan. 02, 2019	Mar. 31, 2019
Warrant exercise price per share		$ 0.0001
Mr. Sean Richards [Member]
Payments to employee	$ 101,500
Warrants exercisable shares	1,000,000
Warrants term	10 years
Warrant exercise price per share	$ 0.0001
Mr. Sean Richards [Member] | Maximum [Member]
Payments to employee	$ 15,000
Receive bonus in cash	10,000
Mr. Joey Parsi [Member]
Payments to employee	$ 225,000
Warrants exercisable shares	25,997,000
Warrants term	10 years
Warrant exercise price per share	$ 0.0001
Employment agreement description	The employment agreement also contains covenants prohibiting Mr. Parsi from disparaging the Company or any of our officers, directors, employees or agents for a period of two years after his employment ends.
Mr. Joey Parsi [Member] | Maximum [Member]
Receive bonus in cash	$ 175,000
Mr. Phillip Gay [Member]
Warrants exercisable shares	6,000,000
Warrants term	10 years
Warrant exercise price per share	$ 0.0001
Percentage of warrant vesting	25.00%
Mr. Phillip Gay [Member] | Maximum [Member]
Receive bonus in cash	$ 75,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Apr. 17, 2019	Mar. 31, 2019	Apr. 01, 2018
Stock issued during period for services, value		$ 2,100	$ 11,080
Subsequent Event [Member]
Stock issued during period for services	150,000
Stock issued during period for services, value	$ 2,550