Southern Concepts Restaurant (RIBS) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Southern Concepts Restaurant Group, Inc.
Entity Central Index Key	1,445,918
Amendment Flag	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2,016
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		77,303,476

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 65,822	$ 1,107,330
Prepaid expenses and other	69,821	117,499
Inventory	81,995	91,358
Total current assets	217,638	1,316,187
Deposits	120,555	120,555
Related party receivable	25,787	25,787
Intangible asset, net	31,875	35,625
Property and equipment, net	3,772,208	4,279,096
Total assets	4,168,063	5,777,250
Current liabilities:
Accounts payable	154,939	256,252
Accrued expenses	295,016	272,347
Notes payable and accrued interest, current portion	232,133
Convertible notes payable and accrued interest, current portion	232,792	129,489
Related party note payable (net of discount of $91,485 (2016) and $365,940 (2015))	1,116,015	784,059
Total current liabilities	2,030,895	1,442,147
Deferred rent	289,710	309,895
Notes payable and accrued interest, net of current portion	193,335	482,934
Convertible notes payable and accrued interest, less current portion, (net of discount of $418,778 (2016) and $514,515 (2015)	1,158,648	1,110,122
Total liabilities	3,672,588	3,345,098
Commitments and contingencies
Equity
Preferred stock - par value $0.001; Authorized Series A shares - 456,068 Issued and outstanding Series A shares - 456,068 (2016) and 4,884,859 (2015)	23,348	248,994
Common stock - no par value; Authorized shares - 125,000,000 Issued and outstanding shares - 77,078,476 (2016) and 62,398,303 (2015)	10,476,626	9,799,319
Additional paid-in capital	4,295,507	3,873,710
Accumulated deficit	(14,509,118)	(12,092,077)
Total Southern Concepts Restaurant Group, Inc ("SCRG") equity	286,363	1,829,946
Noncontrolling interest	209,112	602,206
Total equity	495,475	2,432,152
Total liabilities and equity	$ 4,168,063	$ 5,777,250

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Related party note payable, discount	$ 91,485	$ 365,940
Convertible notes payable and accrued interest, discount	$ 418,778	$ 514,515
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	456,068	4,884,859
Preferred stock, shares issued	456,068	4,884,859
Preferred stock, shares outstanding	456,068	4,884,859
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	77,078,476	62,398,303
Common stock, shares outstanding	77,078,476	62,398,303

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 1,708,971	$ 1,736,930	$ 5,570,369	$ 4,792,725
Operating expenses:
Restaurant operating costs (related party $100,300, $300,900, $100,300 and $300,900 for the three and nine months ended September 30, 2016 and 2015), exclusive of depreciation and amortization below	1,839,011	1,770,622	5,794,278	4,857,207
General and administrative	310,480	495,420	1,209,179	1,589,855
Selling and marketing	72,637	98,067	213,459	244,253
Depreciation and amortization	187,530	152,897	566,308	405,119
Total operating expenses	2,409,658	2,517,006	7,783,224	7,096,434
Loss from operations	(700,687)	(780,076)	(2,212,855)	(2,303,709)
Other expense:
Interest expense (related party $33,400, $100,100, $32,500 and $97,497 for the three and nine months ended September 30, 2016 and 2015)	(188,089)	(177,962)	(556,968)	(554,020)
Net loss	(888,776)	(958,038)	(2,769,823)	(2,857,729)
Net loss attributable to noncontrolling interest	(137,805)	(126,582)	(352,782)	(330,805)
Net loss attributable to SCRG	(750,971)	(831,456)	(2,417,041)	(2,526,925)
Net loss	$ (888,776)	$ (958,038)	$ (2,769,823)	$ (2,857,729)
Basic and diluted net loss per share attributable to SCRG common shareholders	$ (0.01)	$ (0.02)	$ (0.04)	$ (0.05)
Weighted average number of common shares outstanding - basic and diluted	72,612,584	54,008,923	70,376,956	51,164,319

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF LOSS (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Related party expenses	$ 100,300	$ 100,300	$ 300,900	$ 300,900
Related party interest expense	$ 33,400	$ 32,500	$ 100,100	$ 97,497

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities
Net cash used in operating activities	$ (1,576,790)	$ (1,944,093)
Cash flows from investing activities
Purchase of property and equipment	(55,669)	(1,604,167)
Net cash used in investing activities	(55,669)	(1,604,167)
Cash flows from financing activities
Contribution to subsidiary by non-controlling interest	75,000	1,084,023
Distribution to non-controlling interest holders	(115,312)	(26,684)
Proceeds from issuance of a promissory note and a related party note	482,500
Payment of long-term debt	(438,400)
Payment of notes	(50,000)
Payment on promissory notes		(25,000)
Proceeds from sale of common stock and warrants	637,113	1,302,166
Proceeds from stock option exercise	50	25
Proceeds from issuance of long-term debt, net		300,771
Proceeds from issuance of promissory notes and warrants		280,000
Net cash (used in) provided by financing activities	590,951	2,915,301
Net decrease in cash and cash equivalents	(1,041,508)	(632,959)
Cash and cash equivalents, beginning	1,107,330	1,182,099
Cash and cash equivalents, ending	$ 65,822	$ 549,140

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($)	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Noncontrolling Interest [Member]	Total
Balances, beginning at Dec. 31, 2015	$ 9,799,319	$ 248,994	$ 3,873,710	$ (12,092,077)	$ 602,206	$ 2,432,152
Balances, beginning, shares at Dec. 31, 2015	62,398,303	4,884,859				62,398,303
Issuance of common stock and warrants for cash	$ 451,611		185,502			$ 637,113
Issuance of common stock and warrants for cash, shares	7,152,288					7,152,288
Stock-based compensation			236,295			$ 236,295
Cashless exercise of a warrant
Cashless exercise of a warrant, shares	2,916,666
Conversion of Series A preferred shares to common	$ 225,646	$ (225,646)
Conversion of Series A preferred shares to common, shares	4,428,791	(4,428,791)
Exercise of stock options	$ 50					50
Exercise of stock options, shares	182,428
Contribution by non-controlling interest holder					75,000	75,000
Distribution to non-controlling interest holder					(115,312)	(115,312)
Net loss				(2,417,041)	(352,782)	(2,769,823)
Balances, ending at Sep. 30, 2016	$ 10,476,626	$ 23,348	$ 4,295,507	$ (14,509,118)	$ 209,112	$ 495,475
Balances, ending, shares at Sep. 30, 2016	77,078,476	456,068				77,078,476

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	NOTE 1 –BASIS OF PRESENTATION Basis of Presentation Southern Concepts Restaurant Group, Inc. ("SCRG"), a Colorado corporation, together with its subsidiaries (collectively the "Company") develops and operates full-service restaurants and a fast casual restaurant. SCRG was formed on January 29, 2008. The Company, on March 9, 2015, with the approval of a majority of the Company's shareholders, changed its name from Bourbon Brothers Holding Corporation to Southern Concepts Restaurant Group, Inc. The Company operates and manages restaurants through its wholly-owned and majority-owned subsidiaries, including: SH Franchisee & Licensing Corp. ("SH") Southern Hospitality Denver Holdings, LLC ("SHDH") Southern Hospitality Denver, LLC ("SHD") Southern Hospitality Lone Tree, LLC ("SHLT") Carve Restaurant Group, LLC ("CRG") Carve BBQ Glendale, LLC ("CARVEG") Southern Hospitality Southern Kitchen Colorado Springs, LLC ("SHSK") Bourbon Brothers Holding Company, LLC ("BBHCLLC") Bourbon Brothers Restaurant Group, LLC ("BBRG") The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of its financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The unaudited condensed consolidated financial statements and related notes do not include all information and footnotes required by U.S. generally accepted accounting principles for annual reports. This quarterly report should be read in conjunction with the consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2015. Management's Plans During 2016, the Company continues to explore options for growth for the Company's two brands, Southern Hospitality and Carve Barbecue, and scouting locations for the kitchen-less concept it is looking to open in Q1 2017. The Company is looking for opportunities for the Southern Hospitality concept with a footprint of 4,000 to 5,000 square feet. The Company is identifying real estate partners and locations for Carve Barbecue's approximately 2,500 square feet footprint. The Company is in the process of identifying 500 to 1,000 square ft. locations for the kitchen-less concept development in the first and second quarters of 2017. As of September 30, 2016, the Company had incurred losses in the first three quarters of 2016. The Company's continued implementation of its business plan is dependent on its future profitability and on additional debt or equity financing. The Company believes the individual store performances reflect an ongoing effort to curb costs within food and labor, while also pursuing marketing activities to increase revenues during the remainder of 2016 at all restaurant locations while also curtailing expenses at the corporate level. The accompanying interim unaudited 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. The Company reported a net loss of approximately $0.9 million, $2.8 million, $1.0 million and $2.9 million for the three and nine month periods ended September 30, 2016 and 2015, respectively, and has an accumulated deficit of approximately $14.5 million at September 30, 2016. The interim unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accountin In February 2016, the FASB issued ASU No. 2016-02 ("ASU 2016-02"), Leases (Topic 842) "Leases (Topic 840)" In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) Simplifying the Measurement of Inventory , which changes the measurement from lower of cost or market to lower of cost and net realizable value. The guidance requires prospective application for reporting periods beginning after December 15, 2016 and permits adoption in an earlier period. The Company intends to adopt this ASU in the first quarter of 2017; the adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. The provisions of this ASU are to be applied using a modified retrospective approach. The Company is currently evaluating the effect that this ASU will have on the consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts from Customers Management has not identified any other recently issued accounting standards that it believes may have a significant impact on the consolidated financial statements. Inventory Inventory consists of food and beverages and is stated at the lower of cost (first-in, first-out) or market.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSET	NOTE 3 – INTANGIBLE ASSETS Intangible assets at September 30, 2016, represent franchise license costs for the Denver restaurant (net of accumulated amortization of $18,125). Amortization expenses of $1,250 and $3,750 have been recorded for the three and nine month periods ended September 30, 2016 and 2015. Amortization expense for the next five years and thereafter is estimated to be as follows: Year ending 2016 (remainder of year) $ 1,250 2017 5,000 2018 5,000 2019 5,000 2020 5,000 Thereafter 10,625 $ 31,875 The Company licenses the rights to the trademark "Bourbon Brothers" and certain intellectual property, as defined, from a related party, Hospitality Income & Asset, LLC ("HIA") (previously Bourbon Brothers LLC), for use in the Company's business operations. HIA has granted an exclusive license to use and to sublicense the tradename and intellectual property for an initial ten-year term. The agreement shall automatically renew for additional terms of ten-years each without any action required by either party. This license agreement does not require the payment of royalties or any other consideration. The Company is not currently using this trademark in its operations, nor is it contemplated for use in the foreseeable future.

RELATED PARTY NOTE PAYABLE

RELATED PARTY NOTE PAYABLE	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
RELATED PARTY NOTE PAYABLE	NOTE 4 – RELATED PARTY NOTE PAYABLE On December 31, 2014, the Company entered into a Loan Agreement and associated Promissory Note (the "Loan Agreement") with Bourbon Brothers #14, LLC ("BB14") which provides for an unsecured term loan in the aggregate original principal amount of $1,250,000 (the "Loan"). The Company received net proceeds of $1,197,714 after loan closing fees. BB14 is a related party entity, controlled by certain shareholders of the Company. The Company is to pay interest on the Loan at the greater of 9.5% or 6.25% per annum plus the prime rate announced by the Wall Street Journal. In addition, the Company is to pay a monthly loan servicing fee in the amount of 1% of the principal balance of the Loan. The entire principal balance of the Loan, plus any accrued and unpaid interest, is due on December 29, 2016. The related party interest expense on this loan for the three and nine months ended September 30, 2016 and 2015 was $33,400, $100,100, $32,500 and $97,500. The Company paid $100,000 towards prepayment of this Loan to BB14 at December 31, 2015. During the nine months ended September 30, 2016, the Company prepaid an additional $400,000 towards this Loan then recaptured $417,500 of this repayment. The company entered into a convertible promissory note with HIA for $40,000. The note is convertible into common shares of the Company at $0.04 per share. The note bears interest at 3% per annum and has principal and interest due by June 30, 2017.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 5 – COMMITMENTS AND CONTINGENCIES Commitments: Franchise agreement The Company operates its Denver restaurant property under a franchise agreement with the Franchisor under an initial ten-year term, renewable for two additional five-year terms. Pursuant to the franchise agreement, as amended, the Company is to pay royalty fees based on a percentage of gross revenues (2.5%, subject to a monthly floor of $5,000) , plus additional fees and costs for marketing, training, inventory and other franchisor costs. Two shareholders of the Company have personally guaranteed royalty payments to the Franchisor. For the three and nine months ended September 30, 2016 and 2015, the Company incurred royalty expense of $37,690, $123,100, $41,900 and $99,600 respectively. Related Party In January 2014, the Company entered into a 120 month lease with a related party for its Colorado Springs-based restaurant. The Company pays $33,424 per month escalating by approximately 10% every 60 months. Contingencies: From time to time, the Company may become party to litigation and other claims in the ordinary course of business. To the extent that such claims and litigation arise, management provides for them if upon the advice of counsel, losses are determined to be both probable and estimable.

EQUITY

EQUITY	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
EQUITY	NOTE 6 – EQUITY Common stock: The Company issued 5,031,730 common shares of stock for proceeds of $210,346 between July 1, 2016 and September 30, 2016. For the period from January 1, 2016 through September 30, 2016, the Company issued 7,152,288 common shares of stock for proceeds of $637,113. The Company sold 225,000 shares of common stock subsequent to September 30, 2016 for proceeds or $9,000. Stock options: The stock-based compensation cost related to options that have been included as a charge to general and administrative expense in the condensed consolidated statements of loss was approximately $121,500, $236,300, $109,100 and $263,900 for the three and nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016 there was approximately $494,600 of unrecognized compensation cost related to non-vested stock options. The cost is expected to be recognized over a weighted-average period of less than four years. The following tables set forth the activity in the Company's Plan for the nine months ended September 30, 2016: Weighted Weighted average Shares average remaining Aggregate under exercise contractual intrinsic option price life value Outstanding at January 1, 2016 2,867,876 $ 0.30 Granted 5,400,000 0.05 Exercised (182,426 ) 0.00 Forfeited/cancelled (1,468,950 ) 0.25 Outstanding at September 30, 2016 6,616,500 0.11 4.48 $ - Exercisable at September 30, 2016 2,104,000 $ 0.23 4.40 $ - The following table summarizes the activity and value of non-vested options as of and for the nine months ended September 30, 2016: Weighted average Number of grant date options fair value Non-vested options outstanding at January 1, 2016 1,365,926 $ 0.18 Granted 5,400,000 0.05 Vested (1,907,426 ) 0.15 Forfeited/cancelled (346,000 ) 0.46 Non-vested options outstanding at September 30, 2016 4,512,500 $ 0.05 Warrants: The following table sets forth the activity regarding warrants for the nine months ended September 30, 2016: Weighted Weighted Average Shares Average Remaining Aggregate Underlying Exercise Contractual Intrinsic Warrants Price Life Value Outstanding at January 1, 2016 27,717,614 $ 0.25 2.96 Granted 3,010,554 0.30 Exercised (5,000,000 ) Forfeited/cancelled (250,000 ) 0.90 Outstanding at September 30, 2016 25,478,168 0.28 1.85 $ - Exercisable at September 30, 2016 24,623,168 $ 0.29 1.85 $ - The following table sets for the activity regarding non-vested warrants for the nine months ended September 30, 2016: Non-vested Weighted Weighted Shares Average Average Underlying Exercise Grant Date Warrants Price Fair Value Non-vested at January 1, 2016 173,000 $ 0.18 $ 0.24 Granted 3,010,554 0.30 $ - Vested (2,328,554 ) 0.39 - Forfeited/cancelled - - $ - Non-vested at September 855,000 $ 0.06 $ 0.07

SIGNIFICANT ACCOUNTING POLICI14

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accountin In February 2016, the FASB issued ASU No. 2016-02 ("ASU 2016-02"), Leases (Topic 842) "Leases (Topic 840)" In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) Simplifying the Measurement of Inventory , which changes the measurement from lower of cost or market to lower of cost and net realizable value. The guidance requires prospective application for reporting periods beginning after December 15, 2016 and permits adoption in an earlier period. The Company intends to adopt this ASU in the first quarter of 2017; the adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. The provisions of this ASU are to be applied using a modified retrospective approach. The Company is currently evaluating the effect that this ASU will have on the consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts from Customers Management has not identified any other recently issued accounting standards that it believes may have a significant impact on the consolidated financial statements.
Inventory	Inventory Inventory consists of food and beverages and is stated at the lower of cost (first-in, first-out) or market.

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Estimated Future Amortization Expense	Year ending 2016 (remainder of year) $ 1,250 2017 5,000 2018 5,000 2019 5,000 2020 5,000 Thereafter 10,625 $ 31,875

EQUITY (Tables)

EQUITY (Tables)	9 Months Ended
	Sep. 30, 2016
Warrants [Member]
Schedule of Activity	Weighted Weighted Average Shares Average Remaining Aggregate Underlying Exercise Contractual Intrinsic Warrants Price Life Value Outstanding at January 1, 2016 27,717,614 $ 0.25 2.96 Granted 3,010,554 0.30 Exercised (5,000,000 ) Forfeited/cancelled (250,000 ) 0.90 Outstanding at September 30, 2016 25,478,168 0.28 1.85 $ - Exercisable at September 30, 2016 24,623,168 $ 0.29 1.85 $ -
Schedule of Nonvested Share Activity	Non-vested Weighted Weighted Shares Average Average Underlying Exercise Grant Date Warrants Price Fair Value Non-vested at January 1, 2016 173,000 $ 0.18 $ 0.24 Granted 3,010,554 0.30 $ - Vested (2,328,554 ) 0.39 - Forfeited/cancelled - - $ - Non-vested at September 855,000 $ 0.06 $ 0.07
Stock Option [Member]
Schedule of Activity	Weighted Weighted average Shares average remaining Aggregate under exercise contractual intrinsic option price life value Outstanding at January 1, 2016 2,867,876 $ 0.30 Granted 5,400,000 0.05 Exercised (182,426 ) 0.00 Forfeited/cancelled (1,468,950 ) 0.25 Outstanding at September 30, 2016 6,616,500 0.11 4.48 $ - Exercisable at September 30, 2016 2,104,000 $ 0.23 4.40 $ -
Schedule of Nonvested Share Activity	Weighted average Number of grant date options fair value Non-vested options outstanding at January 1, 2016 1,365,926 $ 0.18 Granted 5,400,000 0.05 Vested (1,907,426 ) 0.15 Forfeited/cancelled (346,000 ) 0.46 Non-vested options outstanding at September 30, 2016 4,512,500 $ 0.05

BASIS OF PRESENTATION AND MANAG

BASIS OF PRESENTATION AND MANAGEMENT'S PLANS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Basis Of Presentation And Managements Plans Details
Net loss	$ (888,776)	$ (958,038)	$ (2,769,823)	$ (2,857,729)
Accumulated deficit	$ (14,509,118)		$ (14,509,118)		$ (12,092,077)

INTANGIBLE ASSETS (Schedule of

INTANGIBLE ASSETS (Schedule of Estimated Future Amortization Expense) (Details)	Sep. 30, 2016USD ($)
Estimated future amortization expense:
2016 (remainder of year)	$ 1,250
2,017	5,000
2,018	5,000
2,019	5,000
2,020	5,000
Thereafter	10,625
Total	$ 31,875

INTANGIBLE ASSETS (Narrative) (

INTANGIBLE ASSETS (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Intangible Assets Details Narrative
Accumulated amortization	$ 18,125		$ 18,125
Amortization expenses	$ 1,250	$ 1,250	$ 3,750	$ 3,750

RELATED PARTY NOTE PAYABLE (Det

RELATED PARTY NOTE PAYABLE (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Proceeds from loan					$ 300,771
Interest expense		$ 33,400	$ 32,500	100,100	97,497
Repayment of loan, net				438,400
Promissory Note [Member]
Principal amount	$ 1,250,000
Proceeds from loan	$ 1,197,714
Stated interest rate	9.50%
Loan servicing fee percentage	0.10%
Maturity date	Dec. 29, 2016
Interest expense		33,400	$ 32,500	100,100	$ 97,500
Repayment of loan, gross				400,000
Amount recaptured				417,500
Repayment of loan, net				300,000		$ 100,000
Promissory Note [Member] | HIA [Member]
Principal amount		$ 40,000		$ 40,000
Conversion price		$ 0.04		$ 0.04
Stated interest rate		3.00%		3.00%
Maturity date				Jun. 30, 2017
Promissory Note [Member] | Prime Rate [Member]
Percentage in addition to prime rate	6.25%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
	Jan. 31, 2014	Apr. 30, 2012	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Monthly royalty floor			$ 5,000		$ 5,000
Royalty expense			$ 37,690	$ 41,900	$ 123,100	$ 99,600
Royalty percentage			2.50%		2.50%
Restaurant in Denver Colorado [Member]
Property, Plant and Equipment [Line Items]
Lease Term		10 years
Lease renewal term		5 years
Restaurant in Colorado Springs [Member]
Property, Plant and Equipment [Line Items]
Lease Term	120 months
Monthly rent expense	$ 33,424
Increase percentage on lease rent			10.00%		10.00%

EQUITY (Narrative) (Details)

EQUITY (Narrative) (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Nov. 14, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Sale of common stock for cash, shares		5,031,730		7,152,288
Sale of common stock for cash		$ 210,346		$ 637,113
Stock-based compensation		121,500	$ 109,100	236,300	$ 263,900
Unrecognized share-based compensation expense		$ 494,600		$ 494,600
Subsequent Event [Member]
Sale of common stock for cash, shares	225,000
Sale of common stock for cash	$ 9,000

EQUITY (Schedule of Activity fo

EQUITY (Schedule of Activity for Stock Options) (Details) - Stock Option [Member]	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Shares under option
Outstanding, beginning balance | shares	2,867,876
Granted | shares	5,400,000
Exercised | shares	(182,426)
Forfeited/cancelled | shares	(1,468,950)
Outstanding, ending balance | shares	6,616,500
Exercisable | shares	2,104,000
Weighted average exercise price
Outstanding, beginning balance | $ / shares	$ 0.30
Granted | $ / shares	0.05
Exercised | $ / shares	0
Forfeited/cancelled | $ / shares	0.25
Outstanding, ending balance | $ / shares	0.11
Exercisable | $ / shares	$ 0.23
Aggregate intrinsic value
Outstanding, beginning balance | $
Outstanding, ending balance | $
Weighted average remaining contractual life, outstanding	4 years 5 months 23 days
Weighted average remaining contractual life, exercisable	4 years 4 months 24 days

EQUITY (Schedule of Nonvested S

EQUITY (Schedule of Nonvested Share Activity for Stock Options) (Details) - Stock Option [Member]	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Non-vested Stock Option Activity
Outstanding, beginning balance | shares	1,365,926
Granted | shares	5,400,000
Vested | shares	(1,907,426)
Forfeited/cancelled | shares	(346,000)
Outstanding, ending balance | shares	4,512,500
Weighted average exercise price
Outstanding, beginning balance | $ / shares	$ 0.18
Granted | $ / shares	0.05
Vested | $ / shares	0.15
Forfeited/cancelled | $ / shares	0.46
Outstanding, ending balance | $ / shares	$ 0.05

EQUITY (Schedule of Activity 25

EQUITY (Schedule of Activity for Warrants) (Details) - Warrants [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Shares Underlying Warrants
Outstanding, beginning balance	27,717,614
Granted	3,010,554
Exercised	(5,000,000)
Forfeited/cancelled	(250,000)
Outstanding, ending balance	25,478,168	27,717,614
Exercisable	24,623,168
Weighted average exercise price
Outstanding, beginning balance	$ 0.25
Granted	0.30
Exercised
Forfeited/cancelled	0.90
Outstanding, ending balance	0.28	$ 0.25
Exercisable	$ 0.29
Aggregate intrinsic value
Outstanding, beginning balance
Outstanding, ending balance
Weighted average remaining contractual life, outstanding	1 year 10 months 6 days	2 years 11 months 16 days
Weighted average remaining contractual life, exercisable	1 year 10 months 6 days

EQUITY (Schedule of Nonvested26

EQUITY (Schedule of Nonvested Share Activity for Warrants) (Details) - Warrants [Member]	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Non-vested Shares Underlying Warrants
Outstanding, beginning balance | shares	173,000
Granted | shares	3,010,554
Vested | shares	(2,328,554)
Forfeited/cancelled | shares
Outstanding, ending balance | shares	855,000
Weighted Average Exercise Price
Outstanding, beginning balance	$ 0.18
Granted	0.30
Vested	0.39
Forfeited/cancelled
Outstanding, ending balance	0.06
Weighted Average Grant Date Fair Value
Outstanding, beginning balance	0.24
Granted
Vested
Forfeited/cancelled
Outstanding, ending balance	$ 0.07