FAT Brands (FAT) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 13, 2018
Document And Entity Information
Entity Registrant Name	Fat Brands, Inc
Entity Central Index Key	1,705,012
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		11,529,891
Trading Symbol	FAT
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash	$ 1,859	$ 32
Accounts receivable, net of allowance for doubtful accounts of $689 and $679, respectively	2,230	918
Trade notes receivable, net of allowance for doubtful accounts of $17	83	77
Other current assets	774	153
Total current assets	4,946	1,180
Notes receivable - noncurrent, net of allowance for doubtful accounts of $17	2,461	346
Due from affiliates	12,998	7,963
Deferred income taxes	1,771	937
Goodwill	8,110	7,356
Other intangible assets, net	21,867	11,011
Other assets	404	7
Buffalo's creative and advertising fund		436
Total assets	52,557	29,236
Liabilities
Accounts payable	3,352	2,439
Deferred income	1,136	1,772
Accrued expenses	2,507	1,761
Accrued advertising	164	348
Accrued interest payable	671	405
Dividend payable on mandatorily redeemable preferred shares	321
Current portion of long-term debt	55
Total current liabilities	8,206	6,725
Deferred income - noncurrent	6,638	1,941
Long-term debt, net	14,938
Mandatorily redeemable preferred shares, net	14,175
Deferred dividend payable on mandatorily redeemable preferred shares	126
Notes payable to FCCG		18,125
Buffalo's creative and advertising fund - contra		436
Total liabilities	44,083	27,227
Commitments and contingencies (Note 17)
Stockholders' equity
Common stock, $.0001 par value; 25,000,000 shares authorized; 11,353,014 and 10,000,000 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	10,867	2,622
Accumulated deficit	(2,393)	(613)
Total stockholders' equity	8,474	2,009
Total liabilities and stockholders' equity	$ 52,557	$ 29,236

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable, net of allowance for doubtful accounts	$ 689	$ 679
Trade notes receivable, net of allowance for doubtful accounts	17	17
Trade notes receivable - noncurrent, net of allowance for doubtful accounts	$ 17	$ 17
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	11,353,014	10,000,000
Common stock, shares outstanding	11,353,014	10,000,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Revenue
Royalties	$ 3,370	$ 8,802
Franchise fees	1,343	2,041
Store opening fees	100	205
Advertising fees	1,038	2,264
Management fees	13	45
Total revenue	5,864	13,357
General and administrative expenses
Compensation and employee benefits	1,495	4,285
Travel and entertainment	177	503
Professional fees	513	1,071
Advertising expense	1,038	2,264
Other	532	1,357
Total general and administrative expenses	3,755	9,480
Income from operations	2,109	3,877
Non-operating income (expense)
Interest expense, net	(991)	(1,427)
Interest expense related to mandatorily redeemable preferred shares	(437)	(515)
Depreciation and amortization	(120)	(193)
Other expense, net	(352)	(355)
Total non-operating expense	(1,900)	(2,490)
Income before taxes	209	1,387
Income tax expense	199	495
Net income	$ 10	$ 892
Basic income per common share	$ 0	$ 0.08
Basic weighted average shares outstanding	11,317,679	10,498,931
Diluted income per common share	$ 0	$ 0.08
Diluted weighted average shares outstanding	11,334,620	10,507,281
Cash dividends declared per common share	$ 0	$ 0.24

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Common Stock [Member]	Par Value [Member]	Additional paid-in capital [Member]	Accumulated Deficit [Member]	Total
Balance, Beginning at Dec. 31, 2017	$ 2,622	$ 1	$ 2,621	$ (613)	$ 2,009
Balance, Beginning, shares at Dec. 31, 2017	10,000,000
Cumulative-effect adjustment from adoption of ASU 2014-09, Revenue from Contracts with Customers				(2,672)	(2,672)
Net income				892	892
Dividends on common stock			(2,551)		(2,551)
Issuance of common stock in lieu of director fees payable			420		420
Issuance of common stock in lieu of director fees payable, shares	52,254
Issuance of common stock in payment of related party note			7,272		7,272
Issuance of common stock in payment of related party note, shares	989,395
Issuance of common stock in lieu of dividend payable to FCCG			1,920		1,920
Issuance of common stock in lieu of dividend payable to FCCG, shares	311,365
Issuance of warrants to purchase common stock			774		774
Stock offering costs			(50)		(50)
Value of common stock beneficial conversion feature of Series A-1 Preferred Stock			90		90
Share-based compensation			370		370
Share-based compensation, shares
Balance, Ending at Sep. 30, 2018	$ 10,867	$ 1	$ 10,866	$ (2,393)	$ 8,474
Balance, Ending, shares at Sep. 30, 2018	11,353,014

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Cash flows from operating activities
Net income	$ 892
Adjustments to reconcile net income to net cash provided by operations:
Deferred income taxes	(22)
Depreciation and amortization	193
Share-based compensation	370
Accretion of long-term debt	413
Accretion of Series A and Series A-1 Mandatorily Redeemable Preferred Shares	18
Change in:
Accounts receivable	(805)
Trade notes receivable	64
Prepaid expenses	(362)
Accounts payables and accrued expense	1,033
Accrued advertising	(475)
Accrued interest payable	259
Dividend payable on mandatorily redeemable shares	447
Deferred income	(1,665)
Total adjustments	(532)
Net cash provided by operating activities	360
Cash flows from investing activities
Payments made in connection with acquisition, net	(7,677)
Additions to property and equipment	(139)
Net cash used in investing activities	(7,816)
Cash flows from financing activities
Issuance of mandatorily redeemable preferred shares and associated warrants, net	7,984
Proceeds from borrowings and associated warrants, net of issuance costs	17,096
Repayments of borrowings	(10,853)
Change in due from affiliates	(4,262)
Dividends paid in cash	(632)
Other	(50)
Net cash provided by financing activities	9,283
Net increase in cash	1,827
Cash at beginning of period	32
Cash at end of period	1,859
Supplemental disclosures of cash flow information:
Cash paid for interest	1,551
Cash paid for income taxes	184
Supplemental disclosure of non-cash financing and investing activities:
Dividends reinvested in common stock	1,920
Note payable to FCCG converted to common and preferred stock	9,272
Director fees converted to common stock	420
Income taxes payable offset against amounts due from affiliates	$ 74

Organization and Relationships

Organization and Relationships	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Relationships	NOTE 1. ORGANIZATION AND RELATIONSHIPS FAT Brands Inc. (the “Company”) was formed on March 21, 2017 as a wholly-owned subsidiary of Fog Cutter Capital Group Inc. (“FCCG”). On October 20, 2017, the Company completed an initial public offering and issued additional shares of common stock representing 20 percent of its ownership (the “Offering”). The Company’s common stock trades on the Nasdaq Capital Market under the symbol “FAT.” The Company did not begin operations until October 20, 2017. As a result, prior year comparative results are not presented in the accompanying statement of operations and statement of cash flows. On July 3, 2018, the Company completed the acquisition of Hurricane AMT, LLC, a Florida limited liability company (“Hurricane”), for a purchase price of $12,500,000. Hurricane is the franchisor of Hurricane Grill & Wings and Hurricane BTW Restaurants. At September 30, 2018, FCCG controlled a significant voting majority of the Company.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of operations Fatburger restaurants serve a variety of freshly made-to-order Fatburgers, Turkeyburgers, Chicken Sandwiches, Veggieburgers, French fries, onion rings, soft-drinks and milkshakes. Buffalo’s grants franchises for the operation of casual dining restaurants (Buffalo’s Southwest Cafés) and quick service restaurants outlets (Buffalo’s Express). These restaurants specialize in the sale of Buffalo-Style chicken wings, chicken tenders, burgers, ribs, wrap sandwiches, and salads. Hurricane restaurants have a tropical, laid-back vibe and are known for jumbo fresh wings with more than 35 signature sauces and rubs. Hurricane Grill & Wings’ menu includes Hurricane’s Garlic & Parmesan fries, tasty salads, seafood entrees and fresh ½ pound burgers. The brand’s signature Rum Bar with over 21 premium rums leads its tropical drinks menu, along with a wide selection of craft beers and wines. Ponderosa and Bonanza Steakhouses offer guests a high-quality buffet and broad array of great tasting, affordably-priced steak, chicken and seafood entrées. Buffets at Ponderosa and Bonanza Steakhouses feature a large variety of all you can eat salads, soups, appetizers, vegetables, breads, hot main courses and desserts. Bonanza Steak & BBQ operates full service steakhouses with fresh farm-to-table salad bar, including a menu showcase of USDA flame-grilled steaks, house-smoked BBQ and contemporized interpretations of traditional American classics. The Company also co-brands its franchise concepts. These co-branded restaurants sell products of multiple affiliated brands and share back-of-the-house facilities. The Company operates on a 52-week calendar and its fiscal year ends on the Sunday closest to December 31. Consistent with the industry practice, the Company measures its stores’ performance based upon 7-day work weeks. Using the 52-week cycle ensures consistent weekly reporting for operations and ensures that each week has the same days, since certain days are more profitable than others. The use of this fiscal year means a 53 rd Principles of consolidation Use of estimates in the preparation of the consolidated financial statements Financial Statement Reclassification Cash and Cash Equivalents Accounts receivable Trade notes receivable – Goodwill and other intangible assets Income taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. We utilize a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon the ultimate settlement. Franchise fees and royalty revenue Store opening fees – Advertising – Share-based compensation Earnings per share Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts With Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods and services to customers. The updated standard replaces most existing revenue recognition guidance in U.S. GAAP. These standards became effective for the Company on January 1, 2018. These standards require that the transaction price received from customers be allocated to each separate and distinct performance obligation. The transaction price attributable to each separate and distinct performance obligation is then recognized as the performance obligations are satisfied as specified in the contract. The agreements for services provided by the Company related to upfront fees received from franchisees (such as initial or renewal fees) do not currently contain separate and distinct performance obligations from the franchise right and thus those upfront fees will be recognized as revenue over the term of each respective franchise agreement. Previously, we recognized upfront franchise fees such as initial and renewal fees when the related services have been provided, which is when a store opened for initial fees and when renewal options became effective for renewal fees. These standards require any unamortized portion of fees received prior to adoption be presented in the consolidated balance sheet as a contract liability. The new standards also had an impact on transactions previously not included in the Company’s revenues and expenses such as franchisee contributions to and subsequent expenditures from advertising arrangements we have with our franchisees. The Company did not previously include these contributions and expenditures in its consolidated statements of operations or cash flows. Under the new standards, the Company will recognize advertising fees and the related expense in its consolidated statements of operations or cash flows. The Company will also consolidate the assets and liabilities related to advertising funds on its balance sheet. These standards will not impact the recognition of our sales-based royalties from franchisees, which is generally our largest source of revenue. We have implemented internal controls related to the recognition and presentation of the Company’s revenues under these new standards. The Company adopted ASU 2014-09 on January 1, 2018 using the modified retrospective method, in which the cumulative effect of applying the standard would be recognized at the date of initial application. An adjustment to increase deferred revenue in the amount of $3,482,000 was established on the date of adoption relating to fees received through December 31, 2017 that would have been deferred and recognized over the term of each respective franchise store agreement if the new guidance had been applied in the past. A deferred tax asset of $810,000 related to this contract liability was also established on the date of adoption. These adjustments had the effect of increasing beginning accumulated deficit by approximately $2,672,000. Adopting the new accounting standards for revenue affected several financial statement line items for the thirty-nine weeks ended September 30, 2018. The following tables provide the affected amounts as reported in these Unaudited Consolidated Financial Statements compared with what they would have been if the previous accounting guidance had remained in effect. As of September 30, 2018 (in thousands) Amounts As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Balance Sheet: Cash $ 1,859 $ 1,405 Accounts receivable $ 2,230 $ 1,642 Other current assets $ 774 $ 760 Due from affiliates $ 12,998 $ 12,804 Deferred income taxes $ 1,771 $ 959 Buffalo’s Creative and Advertising Fund $ - $ 356 Buffalo’s Creative and Advertising Fund - Contra $ - $ 356 Accounts payable $ 3,352 $ 2,482 Deferred income $ 7,774 $ 4,555 Accrued expenses $ 2,507 $ 2,117 Accrued advertising $ 164 $ 515 Accumulated deficit $ (2,393 ) $ (324 ) For the thirty-nine weeks ended September 30, 2018 (in thousands except per share data) As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Statement of Operations: Franchise fees and store opening fees $ 2,246 $ 1,643 Advertising fees $ 2,264 $ - Advertising expense $ 2,264 $ - Net income $ 892 $ 289 Earnings per common share - basic $ 0.08 $ 0.03 Earnings per common share - diluted $ 0.08 $ 0.03 For the thirty-nine weeks ended September 30, 2018 (in thousands) As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Statement of Cash Flows: Net income $ 892 $ 289 Adjustments to reconcile net income to net cash provided by operating activities: Accounts receivable $ (805 ) $ (724 ) Deferred income $ (1,665 ) 842 Accounts payable and accrued expenses $ 1,033 $ 399 Accrued advertising $ (475 ) $ 167 Increase in due from affiliates $ (4,262 ) $ (4,841 ) In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to reduce diversity in practice in how transactions are classified in the statement of cash flows. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), requiring a lessee to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with a lease term of more than twelve months. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease. This ASU is effective for interim and annual period beginning after December 15, 2018 and requires a modified retrospective approach to adoption for lessees related to capital and operating leases existing at, or entered into after, the earliest comparative period presented in the financial statements, with certain practical expedients available. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. The primary effect of adopting this ASU will be to record assets and obligations for the Company’s operating leases. In June 2018, the FASB issued ASU No.2018-07, Compensation- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Prior to this update, Top 718 applied only to share-based transactions to employees. Consistent with the accounting requirements for employee share-based payment awards, nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The amendments in the update are effective for public business entities form fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The adoption of this accounting standard is not expected to have a material effect on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU 2018-09, Codification Improvements. This ASU makes amendments to multiple codification Topics. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments in this ASU do not require transition guidance and will be effective upon issuance of this ASU. However, many of the amendments in this ASU do have transition guidance with effective dates for annual periods beginning after December 15, 2018. The Company is currently assessing the effect that this ASU will have on its financial position, results of operations, and disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU adds, modifies and removes several disclosure requirements relative to the three levels of inputs used to measure fair value in accordance with Topic 820, “Fair Value Measurement.” This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. The Company is currently assessing the effect that this ASU will have on its financial position, results of operations, and disclosures.

Hurricane Acquisition

Hurricane Acquisition	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Hurricane Acquisition	NOTE 3. HURRICANE ACQUISITION On July 3, 2018, the Company completed the acquisition of Hurricane AMT, LLC, a Florida limited liability company (“Hurricane”), for a purchase price of $12,500,000. Hurricane is the franchisor of Hurricane Grill & Wings and Hurricane BTW Restaurants. The purchase price of $12,500,000 was delivered through the payment of $8,000,000 in cash and the issuance to the Sellers of $4,500,000 of equity units of the Company valued at $10,000 per unit, or a total of 450 units. Each unit consists of (i) 100 shares of the Company’s newly designated Series A-1 Fixed Rate Cumulative Preferred Stock (the “Series A-1 Preferred Stock”) and (ii) a warrant to purchase 125 shares of the Company’s Common Stock at $8.00 per share (the “Hurricane Warrants”). The Company also entered into a Registration Rights Agreement with the Sellers under which the Company agreed to prepare and file a registration statement with the Securities and Exchange Commission (“ SEC Holders of Series A-1 Preferred Stock will be entitled to receive cumulative dividends on the $100.00 per share stated liquidation preference of the Series A-1 Preferred Stock, in the amount of cash dividends at a rate of 6.0% per year. Upon (i) the five-year anniversary of the initial issuance date (July 3, 2023), or (ii) the earlier liquidation, dissolution or winding-up of the Company (the “Series A-1 Mandatory Redemption Date”), the holders of Series A-1 Preferred Stock will be entitled to cash redemption of their shares in an amount equal to $100.00 per share plus any accrued and unpaid dividends. In addition, prior to the Series A-1 Mandatory Redemption Date, the Company may optionally redeem the Series A-1 Preferred Stock, in whole or in part, at par plus any accrued and unpaid dividends. Holders of Series A-1 Preferred Stock may also optionally cause the Company to redeem all or any portion of their shares of Series A-1 Preferred Stock beginning any time after the two-year anniversary of the initial issuance date for an amount equal to $100.00 per share plus any accrued and unpaid dividends, which amount may be settled in cash or Common Stock of the Company, at the option of the holder. If a holder elects to receive Common Stock, shares will be issued as payment for redemption at the rate of $12.00 per share of Common Stock. Fees and expenses related to the Hurricane acquisition totaled approximately $206,000 consisting primarily of professional fees, all of which are classified as other expenses in the accompanying consolidated statement of operations. These fees and expenses were funded through cash on hand and proceeds from borrowings. The allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in thousands): Cash $ 358 Accounts receivable 389 Notes receivable 2,184 Other current assets 760 Intangible assets 11,020 Goodwill 754 Accounts payable and accrued expenses (723 ) Deferred franchise fees (1,885 ) Other liabilities (357 ) Total net identifiable assets $ 12,500 The following table provides information regarding the revenue and earnings of Hurricane included in the accompanying consolidated financial statements since July 3, 2018 (in thousands): Hurricane Revenues Royalties $ 825 Franchise fees 16 Advertising fees 480 Total revenues 1,321 Expenses General and administrative 1,192 Income from operations 129 Other expense (133 ) Loss before income tax benefit (4 ) Income tax benefit (1 ) Net loss $ (3 ) The following unaudited pro forma information presents the revenue and earnings of Hurricane as if it had been acquired on January 1, 2018 (the beginning of the Company’s fiscal year) through September 30, 2018 (in thousands): Pro Forma Hurricane Revenues Royalties $ 2,519 Franchise fees 48 Advertising fees 1,362 Total revenues 3,929 Expenses General and administrative 4,310 Loss from operations (381 ) Other expense (263 ) Loss before income tax benefit (644 ) Income tax benefit (180 ) Net loss $ (464 ) The unaudited pro forma income statement reflects actual results of Hurricane for the thirty-nine weeks ended September 30, 2018 with the following adjustments: Revenue – The unaudited pro forma income statement presents franchise fee revenue and advertising revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers Selling, general and administrative expenses – Prior to the Acquisition, Hurricane incurred costs associated with a closed, company owned restaurant. These expenses have been eliminated in the pro forma adjustments since the Acquisition did not include the company owned restaurant. The pro forma adjustments include advertising expenses in accordance with ASU 2014-09. Interest expense, net – The pro forma interest expense has been adjusted to exclude actual Hurricane interest expense incurred prior to the Acquisition. All interest-bearing liabilities were paid off at the Acquisition date. Depreciation and amortization – The pro forma adjustments include the amortization of the intangible asset relating to acquired franchise agreements over their average remaining term of 13 years. Income tax benefit – The tax benefit of the pro forma net loss is calculated using an effective tax rate of 28%. Upon acquisition, Hurricane became subject to the Tax Sharing Agreement with FCCG. Had the Company owned Hurricane as of January 1, 2018, the unaudited pro forma consolidated net income of the Company would have been a loss of approximately $98,000 instead of net income of $892,000. This pro forma loss includes the additional financing carrying costs (net of tax benefits) in the amount of $529,000 that would have been incurred by FAT Brands had the acquisition been consummated as of January 1, 2018.

Notes Receivable

Notes Receivable	9 Months Ended
	Sep. 30, 2018
Receivables [Abstract]
Notes Receivable	Note 4. NOTES RECEIVABLE Prior to the acquisition by the Company, Hurricane had paid certain expenses on behalf of a former related party of Hurricane. As of September 30, 2018, the amount owed to Hurricane for these advances was $2,163,000. The advances are non-interest bearing and are due on demand. Additionally, trade notes receivable are created when the settlement of a delinquent franchisee receivable account is reached and the entire balance is not immediately paid. Notes receivable generally include personal guarantees from the franchisee. The notes are made for the shortest time frame negotiable and will generally carry an interest rate of 6% to 7.5%. Reserve amounts, on the notes, are established based on the likelihood of collection. As of September 30, 2018, these trade notes receivable totaled $381,000, which is net of reserves of $34,000.

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Note 5. GOODWILL Goodwill consists of the following (in thousands): September 30, 2018 December 31, 2017 Goodwill: Fatburger $ 529 $ 529 Buffalo’s 5,365 5,365 Hurricane 754 - Ponderosa 1,462 1,462 Total goodwill $ 8,110 $ 7,356

Other Intangible Assets

Other Intangible Assets	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Note 6. OTHER INTANGIBLE ASSETS Intangible assets consist of the following (in thousands): September 30, 2018 December 31, 2017 Trademarks: Fatburger $ 2,135 $ 2,135 Buffalo’s 27 27 Hurricane 6,840 - Ponderosa 7,230 7,230 Total trademarks 16,232 9,392 Franchise agreements: Hurricane – cost 4,180 - Hurricane – accumulated amortization (80 ) - Ponderosa – cost 1,640 1,640 Ponderosa – accumulated amortization (105 ) (21 ) Total franchise agreements 5,635 1,619 Total $ 21,867 $ 11,011 The expected future amortization of the Company’s capitalized franchise agreements is as follows (in thousands): Fiscal year: 2018 $ 107 2019 432 2020 432 2021 432 2022 432 Thereafter 3,800 Total $ 5,635

Deferred Income

Deferred Income	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Deferred Income	Note 7. DEFERRED INCOME Deferred income is as follows (in thousands): September 30, 2018 December 31, 2017 Deferred franchise fees $ 7,062 $ 2,781 Deferred royalties 712 932 Total $ 7,774 $ 3,713

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 8. Income Taxes Effective October 20, 2017, the Company entered into a Tax Sharing Agreement with FCCG that provides that FCCG will, to the extent permitted by applicable law, file consolidated federal, California and Oregon (and possibly other jurisdictions where revenue is generated, at FCCG’s election) income tax returns with the Company and its subsidiaries. The Company will pay FCCG the amount that its current tax liability would have been had it filed a separate return. To the extent the Company’s required payment exceeds its share of the actual combined income tax liability (which may occur, for example, due to the application of FCCG’s net operating loss carryforwards), the Company will be permitted, in the discretion of a committee of its board of directors comprised solely of directors not affiliated with or having an interest in FCCG, to pay such excess to FCCG by issuing an equivalent amount of its common stock in lieu of cash, valued at the fair market value at the time of the payment. An inter-company receivable of approximately $12,998,000 due from FCCG and its affiliates will be applied first to reduce excess income tax payment obligations to FCCG under the Tax Sharing Agreement. For financial reporting purposes, the Company has recorded a tax provision calculated as if the Company files its tax returns on a stand-alone basis. The amount payable to FCCG determined by this calculation of $74,000 was offset against amounts due from FCCG as of September 30, 2018 (See Note 12). Deferred taxes reflect the net effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for calculating taxes payable on a stand-alone basis. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): September 30, 2018 December 31, 2017 Deferred tax assets (liabilities) Deferred income $ 1,872 $ 882 Reserves and accruals 426 451 Intangibles (538 ) (372 ) Deferred state income tax (62 ) (25 ) Other 73 1 Total $ 1,771 $ 937 Components of the income tax provision are as follows (in thousands): Thirty-nine Weeks Ended September 30, 2018 Current Federal $ 49 State 142 Foreign 318 509 Deferred Federal 78 State (92 ) (14 ) Total income tax provision $ 495 Income tax provision related to continuing operations differ from the amounts computed by applying the statutory income tax rate of 21% to pretax income as follows (in thousands): Thirty-nine Weeks Ended September 30, 2018 Tax provision at statutory rate 21 % State and local income taxes 3 % Foreign taxes 2 % Share based compensation 11 % Other (1 )% Total income tax provision 36 % As of September 30, 2018, the Company’s subsidiaries’ annual tax filings for the prior three years are open for audit by Federal and for the prior four years for state tax agencies. The Company is the beneficiary of indemnification agreements from the prior owners of the subsidiaries for tax liabilities related to periods prior to its ownership of the subsidiaries. Management evaluated the Company’s overall tax positions and has determined that no provision for uncertain income tax positions is necessary as of September 30, 2018.

Debt

Debt	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Debt	Note 9. DEBT Senior Secured Redeemable Debentures On April 27, 2018, the Company established a credit facility with TCA Global Credit Master Fund, LP (“TCA”). The Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with TCA, pursuant to which TCA agreed to lend the Company up to $5,000,000 through the purchase of Senior Secured Redeemable Debentures issued by the Company (the “Debentures”). A total of $2,000,000 was funded by TCA in connection with the initial closing on April 27, 2018, and the Company issued to TCA an initial Debenture with a face amount of $2,000,000, maturing on October 27, 2019 and bearing interest at the rate of 15% per annum. The Company had the right to prepay the Debentures, in whole or in part, at any time prior to maturity without penalty. The Debentures required interest only payments during the first four months, followed by fully amortizing payments for the balance of the term. The Company paid a commitment fee of 2% of issued Debentures for the facility and agreed to pay an investment banking fee of $170,000 upon maturity of the Debentures. The Company used the net proceeds for working capital purposes and repayment of other indebtedness. The amounts borrowed under the Purchase Agreement were guaranteed by the Company’s operating subsidiaries and by FCCG, pursuant to a Guaranty Agreement in favor of TCA. The Company’s obligations under the Debentures were also secured by a Security Agreement, granting TCA a security interest in substantially all of its assets. In addition, FCCG’s obligations under the Guaranty Agreement were secured by a pledge in favor of TCA of certain shares of common stock that Fog Cutter holds in the Company. During the term of the Purchase Agreement, the Company was prohibited from incurring additional indebtedness, with customary exceptions for ordinary course financing arrangements and subordinated indebtedness. The entire balance of the Debenture was paid in full on July 3, 2018, and the credit facility was terminated. The Company recognized interest expense of $12,000 for the thirteen and $62,000 for the thirty-nine weeks ended September 30, 2018. Additionally, the Company recognized debt offering costs of $130,000 for the thirteen and $143,000 for the thirty-nine weeks ended September 30, 2018. Also, the Company recognized the investment banking fee of $170,000 upon repayment on July 3, 2018. Term Loan On July 3, 2018, the Company as borrower, and certain of the Company’s direct and indirect subsidiaries and affiliates as guarantors, entered into a new Loan and Security Agreement (the “Loan Agreement”) with FB Lending, LLC (the “Lender”). Pursuant to the Loan Agreement, the Company borrowed $16.0 million in a term loan (“Term Loan”) from the Lender. The Company used a portion of the loan proceeds to fund (i) the cash payment of $8.0 million to the members of Hurricane and closing costs in connection with the acquisition of Hurricane, and (ii) to repay borrowings of $2.0 million plus interest and fees owing under the Company’s existing loan facility with TCA Global Credit Master Fund, LP. The Company intends to use the remaining proceeds for additional acquisitions and general working capital purposes. The new term loan under the Loan Agreement matures on June 30, 2020. Interest on the term loan accrues at an annual fixed rate of 15.0%. The Company may prepay all or a portion of the outstanding principal and accrued unpaid interest under the Loan Agreement at any time upon prior notice to the Lender, subject to a prepayment penalty of 10% in the first year and 5% in the second year of the term loan. The Company is required to prepay all or a portion of the outstanding principal and accrued unpaid interest under the Loan Agreement in connection with certain dispositions of assets, extraordinary receipts, issuances of additional debt or equity, or a change of control of the Company. In connection with the Loan Agreement, the Company also issued warrants to purchase up to 499,000 shares of the Company’s Common Stock at $7.35 per share to the Lender (the “Lender Warrant”). Warrants were also issued to certain loan placement agents to purchase 65,306 shares of the Company’s common stock at $7.35 per share (the “Placement Agent Warrants”). (See Note 15) As security for its obligations under the Loan Agreement, the Company granted a lien on substantially all of its assets to the Lender. In addition, certain of the Company’s direct and indirect subsidiaries and affiliates entered into a Guaranty (the “Guaranty”) in favor of the Lender, pursuant to which they guaranteed the obligations of the Company under the Loan Agreement and granted as security for their guaranty obligations a lien on substantially all of their assets. The Loan Agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company’s ability to, among other things, incur other indebtedness, grant liens, merge or consolidate, dispose of assets, pay dividends or make distributions, in each case subject to customary exceptions. The Loan Agreement also includes customary events of default that include, among other things, non-payment, inaccuracy of representations and warranties, covenant breaches, events that result in a material adverse effect (as defined in the Loan Agreement), cross default to other material indebtedness, bankruptcy, insolvency and material judgments. The occurrence and continuance of an event of default could result in the acceleration of the Company’s obligations under the Loan Agreement and an increase in the interest rate by 5.0% per annum. On the issuance date, the Company allocated the proceeds between Term Loan and the Lender Warrant based on the relative fair values of each. The aggregate values assigned upon issuance of each component were as follows (in thousands): Warrants (equity component) Term Loan (debt component) Total Gross proceeds $ 571 $ 15,429 $ 16,000 Issuance costs - 760 760 Net proceeds $ 571 $ 14,669 $ 15,240 Balance sheet impact at issuance: Long-term debt, net of discount and offering costs $ - $ 14,669 $ 14,669 Additional paid-in capital $ 571 $ - $ 571 As of September 30, 2018, the total principal amount due under the gross Term Loan was $16,000,000. As of the same date, the net Term Loan balance was $14,938,000, which includes an unaccreted debt discount of $397,000 associated with the warrants and unamortized debt offering costs of $665,000. The Company recognized interest expense on the Term Loan of $664,000 for the thirteen and thirty-nine weeks ended September 30, 2018 as well as $174,000 in accretion expense for the thirteen and thirty-nine weeks ended September 30, 2018, and $95,000 for amortization of debt offering costs for the thirteen and thirty-nine weeks ended September 30, 2018.

Note Payable to FCCG

Note Payable to FCCG	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Note Payable to FCCG	Note 10. NOTE PAYABLE To FCCG Effective October 20, 2017, FCCG contributed two of its operating subsidiaries, Fatburger and Buffalo’s, to the Company in exchange for an unsecured promissory note with a principal balance of $30,000,000, bearing interest at a rate of 10.0% per annum, and maturing in five years (the “Related Party Debt”). The contribution was consummated pursuant to a Contribution Agreement between the Company and FCCG. Approximately $19,778,000 of the note payable to FCCG was subsequently repaid, reducing the balance to $10,222,000 at June 26, 2018. On June 27, 2018, the Company entered into the Note Exchange Agreement, as amended, under which it agreed with FCCG to exchange $9,272,053 of the remaining balance of the Company’s outstanding Related Party Debt for shares of capital stock of the Company in the following amounts: ● $2,000,000 of the Related Party Debt balance was exchanged for 20,000 shares of Series A Fixed Rate Cumulative Preferred Stock of the Company at $100 per share and warrants to purchase 25,000 of the Company’s common stock with an exercise price of $8.00 per share; and ● A portion of the remaining Related Party Debt balance of $7,272,053 was exchanged for 989,395 shares of Common Stock of the Company, representing an exchange price of $7.35 per share, which was the closing trading price of the Common Stock on June 26, 2018. Following the exchange, the remaining balance of the Related Party Debt was $950,000. As of September 30, 2018, the Related Party Debt had been repaid in full. The transactions described above were exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. The Company recognized interest expense on the note payable to FCCG of $24,000 for the thirteen weeks ended September 30, 2018 and $888,000 for the thirty-nine weeks ended September 30, 2018, respectively.

Mandatorily Redeemable Preferre

Mandatorily Redeemable Preferred Stock	9 Months Ended
	Sep. 30, 2018
Mandatorily Redeemable Preferred Stock
Mandatorily Redeemable Preferred Stock	Note 11. MANDaTORilY REDEEMABLE PREFERRED STOCK Series A Fixed Rate Cumulative Preferred Stock On June 8, 2018, the Company filed a Certificate of Designation of Rights and Preferences of Series A Fixed Rate Cumulative Preferred Stock with the Secretary of State of the State of Delaware (the “Certificate of Designation”), designating a total of 100,000 shares of Series A Preferred Stock. The Certificate of Designation contains the following terms pertaining to the Series A Preferred Stock: Dividends Voting Rights Liquidation and Redemption In addition, prior to the Series A Mandatory Redemption Date, the Company may optionally redeem the Series A Preferred Stock, in whole or in part, at the following redemption prices per share, plus any accrued and unpaid dividends: (i) On or prior to June 30, 2021: $115.00 per share. (ii) After June 30, 2021 and on or prior to June 30, 2022: $110.00 per share. (iii) After June 30, 2022: $100.00 per share. Holders of Series A Preferred Stock may also optionally cause the Company to redeem all or any portion of their shares of Series A Preferred Stock beginning any time after the two-year anniversary of the initial issuance date for an amount equal to $100.00 per share plus any accrued and unpaid dividends, which amount may be settled in cash or Common Stock of the Company, at the option of the holder. If a holder elects to receive Common Stock, the shares will be issued based on the 20-day volume weighted average price of the Common Stock immediately preceding the date of the holder’s redemption notice. On June 7, 2018, the Company entered into a Subscription Agreement for the issuance and sale (the “Offering”) of 800 units (the “Units”), with each Unit consisting of (i) 100 shares of the Company’s newly designated Series A Fixed Rate Cumulative Preferred Stock (the “Series A Preferred Stock”) and (ii) warrants (the “Series A Warrants”) to purchase 125 shares of the Company’s Common Stock at $8.00 per share. The sales price of each Unit was $10,000, resulting in gross proceeds to the Company from the initial closing of $8,000,000 and the issuance of 80,000 shares of Series A Preferred Stock and Series A Warrants to purchase 100,000 shares of common stock (the “Subscription Warrants”). On June 27, 2018, the Company entered into a Note Exchange Agreement, as amended, under which it agreed with FCCG to exchange all but $950,000 of the remaining balance of the Company’s outstanding Promissory Note issued to the FCCG on October 20, 2017, in the original principal amount of $30,000,000 (the “Note”). At the time, the Note had an estimated outstanding balance of principal plus accrued interest of $10,222,000 (the “Note Balance”). On June 27, 2018, $9,272,053 of the Note Balance was exchanged for shares of capital stock of the Company and warrants in the following amounts (the “Exchange Shares”): ● $2,000,000 of the Note Balance was exchanged for 200 Units consisting of 20,000 shares of Series A Fixed Rate Cumulative Preferred Stock of the Company at $100 per share and Series A Warrants to purchase 25,000 of the Company’s common stock at an exercise price of $8.00 per share (the “Exchange Warrants”); and ● $7,272,053 of the Note Balance was exchanged for 989,395 shares of Common Stock of the Company, representing an exchange price of $7.35 per share, which was the closing trading price of the Common Stock on June 26, 2018. The Company classified the Series A Preferred Stock as long-term debt because it contains an unconditional obligation requiring the Company to redeem the instruments at $100.00 per share on the Mandatory Redemption Date. The Series A Warrants have been recorded as additional paid-in capital. On the issuance date, the Company allocated the proceeds between the Series A Preferred Stock and the Series A Warrants based on the relative fair values of each. The aggregate values assigned upon issuance of each component were as follows (amounts in thousands, except price per unit): Series A Warrants (equity component) Mandatorily Redeemable Series A Preferred Stock (debt component) Total Subscription Agreement: Gross proceeds $ 87 $ 7,913 $ 8,000 Issuance costs - 15 15 Net proceeds 87 7,898 7,985 Exchange Shares: 25 1,975 2,000 Total proceeds $ 112 $ 9,873 $ 9,985 Subscription price per unit $ 108.75 $ 9,891.25 $ 10,000 Balance sheet impact at issuance: Long-term debt, net of debt discount and offering costs $ - $ 9,873 $ 9,873 Additional paid-in capital $ 112 $ - $ 112 As of September 30, 2018, the net Series A Preferred Stock balance was $9,881,000 including an unaccreted debt discount of $104,000 associated with the warrants and unamortized debt offering costs of $15,000. The Company recognized interest expense on the Series A Preferred Stock of $352,000 and $430,000 for the thirteen and thirty-nine weeks ended September 30, 2018, respectively. Also, the Company recognized accretion expense on the Series A Preferred Stock of $6,000 and $8,000 for the thirteen and thirty-nine weeks ended September 30, 2018, respectively, as well as, $1,000 during the thirteen and thirty-nine weeks ended September 30, 2018 for the amortization of debt offering costs. Each of these stock issuances was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. Each of the investors in the Offering represented that it is an accredited investor within the meaning of Rule 501(a) of Regulation D and was acquiring the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof. The securities were offered without any general solicitation by the Company or its representatives. Series A-1 Fixed Rate Cumulative Preferred Stock On July 3, 2018, the Company filed with the Secretary of State of the State of Delaware a Certificate of Designation of Rights and Preferences of Series A-1 Fixed Rate Cumulative Preferred Stock (the “Series A-1 Certificate of Designation”), designating a total of 200,000 shares of Series A-1 Fixed Rate Cumulative Preferred Stock (the “Series A-1 Preferred Stock”). The Series A-1 Certificate of Designation contains the following terms pertaining to the Series A-1 Preferred Stock: Dividends Voting Rights Liquidation and Redemption. Holders of Series A-1 Preferred Stock may also optionally cause the Company to redeem all or any portion of their shares of Series A-1 Preferred Stock beginning any time after the two-year anniversary of the initial issuance date for an amount equal to $100.00 per share plus any accrued and unpaid dividends, which amount may be settled in cash or Common Stock of the Company, at the option of the holder. If a holder elects to receive Common Stock, shares will be issued as payment for redemption at the rate of $12.00 per share of Common Stock. On July 3, 2018, in connection with the acquisition of Hurricane, the Company agreed to issue $4,500,000 of equity units of the Company valued at $10,000 per unit, or a total of 450 units. Each unit consists of (i) 100 shares of the Company’s newly designated Series A-1 Preferred Stock and (ii) a warrant to purchase 125 shares of the Company’s Common Stock at $8.00 per share (the “Hurricane Warrants”). The Company also entered into a Registration Rights Agreement with the Sellers under which the Company agreed to prepare and file a registration statement with the Securities and Exchange Commission to register for resale the Series A-1 Preferred Stock and shares of Common Stock issuable upon exercise of the Hurricane Warrants and upon conversion of the Series A-1 Preferred Stock. The Company classified the Series A-1 Preferred Stock as long-term debt because it contains an unconditional obligation requiring the Company to redeem the instruments at $100.00 per share on the Series A-1 Mandatory Redemption Date. The associated Hurricane Warrants have been recorded as additional paid-in capital. On the issuance date, the Company allocated the proceeds between the Series A-1 Preferred Stock and the Hurricane Warrants based on the relative fair values of each. In addition, because the effective conversion price of the Series A-1 Preferred Stock is lower than the contractual conversion price, the Company also recorded a beneficial conversion feature to additional paid in capital. The aggregate values assigned upon issuance of each component were as follows (amounts in thousands, except price per unit): Conversion Feature (equity component) Hurricane Warrants (equity component) Mandatorily Redeemable Series A-1 Preferred Stock (debt component) Total Hurricane Acquisition: Gross proceeds $ 90 $ 91 $ 4,319 $ 4,500 Issuance costs - - 35 35 Net proceeds $ 90 $ 91 $ 4,284 $ 4,465 Subscription price per unit $ 201.07 $ 201.07 $ 9,597.86 $ 10,000 Balance sheet impact at issuance: Long-term debt, net of debt discount and offering costs $ - $ - $ 4,284 $ 4,284 Additional paid-in capital $ 90 $ 91 $ - $ 181 As of September 30, 2018, the net Series A-1 Preferred Stock balance was $4,294,000 including an unaccreted debt discount of $173,000 associated with the warrants and beneficial conversion feature and unamortized debt offering costs of $33,000. The Company recognized interest expense on the Series A-1 Preferred Stock of $67,500 for the thirteen and thirty-nine weeks ended September 30, 2018. Also, the Company recognized accretion expense on the Series A-1 Preferred Stock of $7,600 for the thirteen and thirty-nine weeks ended September 30, 2018, as well as, $1,700 during the thirteen and thirty-nine weeks ended September 30, 2018 for the amortization of debt offering costs. Each of these stock issuances was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. Each of the investors in the Offering represented that it is an accredited investor within the meaning of Rule 501(a) of Regulation D and was acquiring the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof. The securities were offered without any general solicitation by the Company or its representatives.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Note 12. Related Party Transactions The Company had open accounts with affiliated entities under the common control of FCCG resulting in net amounts due to the Company of $12,998,000 as of September 30, 2018. Beginning October 20, 2017, the receivable from FCCG bears interest at a rate of 10% per annum. During the thirteen and thirty-nine weeks ended September 30, 2018, $230,000 and $711,000, respectively, of accrued interest income was added to the balance of the receivable from FCCG. The balance of Due From Affiliates includes a preferred capital investment in Homestyle Dining LLC, a Delaware limited liability corporation (“HSD”) in the amount of $4 million made effective July 5, 2018 (the “Preferred Interest”). FCCG owns all of the common interests in HSD. The holder of the Preferred Interest is entitled to a 15% priority return on the outstanding balance of the investment (the “Preferred Return”). Any available cash flows from HSD on a quarterly basis are to be distributed to pay the accrued Preferred Return and repay the Preferred Interest until fully retired. On or before the five-year anniversary of the investment, the Preferred Interest is to be fully repaid, together with all previously accrued but unpaid Preferred Return. FCCG has unconditionally guaranteed repayment of the Preferred Interest in the event HSD fails to do so. Prior to the Offering, the Company’s operations were insignificant other than structuring the Offering. During this time, FCCG provided executive administration and accounting services for the Company. The Company reimbursed FCCG for out-of-pocket costs associated with these services, but there was no allocation of FCCG’s overhead costs. Effective with the Offering, the Company assumed all direct and indirect administrative functions relating to its business. During the thirty-nine weeks ended September 30, 2018, the Company recognized payables to FCCG in the amount of $74,000 for use of FCCG’s net operating losses for tax purposes (See Note 8).

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Shareholders' Equity	Note 13. SHAREHOLDERS’ EQUITY As of September 30, 2018, the total number of authorized shares of common stock was 25,000,000. As of September 30, 2018, and December 31, 2017, there were 11,353,014 and 10,000,000 shares of common stock outstanding, respectively. Below are the changes to the Company’s common stock during the thirty-nine weeks ended September 30, 2018: ● On April 16, 2018, the Company issued 153,600 shares of common stock at a value of $6.25 per share to FCCG in lieu of cash for payment of common stock dividends (See Note 16). ● On June 15, 2018, the Company issued a total of 41,772 shares of common stock at a value of $7.90 per share to the non-employee members of the board of directors as consideration for accrued directors’ fees. ● One June 27, 2018, the Company and FCCG agreed to exchange $7,272,053 of an outstanding promissory note due to FCCG from the Company for 989,395 shares of Common Stock at a value of $7.35 per share. (See Note 10). ● On July 16, 2018, the Company issued 157,765, shares of common stock at a value of $6.085 per share to FCCG in lieu of cash for payment of common stock dividends (See Note 16). ● On September 20, 2018, the Company issued a total of 10,482 shares of common stock at a value of $8.59 per share to the non-employee members of the board of directors as consideration for accrued directors’ fees.

Stock Options

Stock Options	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Stock Options	Note 14. Stock OPTIONS Effective September 30, 2017, the Company adopted the 2017 Omnibus Equity Incentive Plan (the “Plan”). The Plan is a comprehensive incentive compensation plan under which the Company can grant equity-based and other incentive awards to officers, employees and directors of, and consultants and advisers to, FAT Brands Inc. and its subsidiaries. The Plan provides a maximum of 1,000,000 shares available for grant. All of the stock options issued by the Company to date have included a vesting period of three years, with one-third of each grant vesting annually. The Company’s stock option activity for the thirty-nine weeks ended September 30, 2018 can be summarized as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Stock options outstanding at December 31, 2017 362,500 $ 12.00 9.31 Grants 50,000 $ 10.00 9.6 Forfeited (30,000 ) $ 12.00 - Expired - $ - - Stock options outstanding at September 30, 2018 382,500 $ 11.74 9.1 Stock options exercisable at September 30, 2018 - The assumptions used in the Black-Scholes valuation model to record the stock-based compensation are as follows: Including Non-Employee Options Expected dividend yield 4.00% - 7.49 % Expected volatility 31.73 % Risk-free interest rate 1.60% - 2.85 % Expected term (in years) 5.50 – 9.06 The Company recognized share-based compensation expense in the amount of $125,000 and $370,000 during the thirteen and thirty-nine weeks ended September 30, 2018. There remains $355,000 of related share-based compensation expense relating to these non-vested grants, which will be recognized over the remaining vesting period, subject to future forfeitures.

Warrants

Warrants	9 Months Ended
	Sep. 30, 2018
Other Liabilities Disclosure [Abstract]
Warrants	Note 15. WARRANTS From the Offering through September 30, 2018, the Company has issued the following outstanding warrants to purchase shares of its common stock: ● Warrants issued on October 20, 2017 to purchase 80,000 shares of the Company’s stock granted to the selling agent in the Company’s initial public offering (the “Common Stock Warrants”). The Common Stock Warrants are exercisable commencing April 20, 2018 through October 20, 2022. The exercise price for the Common Stock Warrants is $15 per share, and the Common Stock Warrants are valued at $124,000. The Common Stock Warrants provide that upon exercise, the Company may elect to redeem the Common Stock Warrants in cash by paying the difference between the applicable exercise price and the then-current fair market value of the common stock. ● Warrants issued on June 7, 2018 to purchase 100,000 shares of the Company’s common stock at $8.00 per share (the “Subscription Warrants”). The Subscription Warrants were issued as part of the Subscription Agreement (see Note 11). The Subscription Warrants are valued at $87,000. The Subscription Warrants may be exercised at any time or times beginning on the issue date and ending on the five-year anniversary of the issue date. ● Warrants issued on June 27, 2018 to purchase 25,000 shares of the Company’s common stock at $8.00 per share (the “Exchange Warrants”). The Exchange Warrants were issued as part of the Exchange (See Notes 10 and 11). The Exchange Warrants are valued at $25,000. The Exchange Warrants may be exercised at any time or times beginning on the issue date and ending on the five-year anniversary of the issue date. ● Warrants issued on July 3, 2018 to purchase 56,250 shares of the Company’s common stock at $8.00 per share (the “Hurricane Warrants”). The Hurricane Warrants were issued as part of the acquisition of Hurricane (See Notes 3 and 11). The Hurricane Warrants are valued at $58,000. The Hurricane Warrants may be exercised at any time or times beginning on the issue date and ending on the five-year anniversary of the issue date. ● Warrants issued on July 3, 2018 to purchase 499,000 shares of the Company’s common stock at $7.35 per share (the “Lender Warrant”). The Lender Warrant was issued as part of the $16 million credit facility with FB Lending, LLC (See Note 9). The Lender Warrant is valued at $592,000. The Lender Warrant may be exercised at any time or times beginning on the issue date and ending on the five-year anniversary of the issue date. ● Warrants issued on July 3, 2018 to purchase 65,306 shares of the Company’s common stock at $7.35 per share (the “Placement Agent Warrants”). The Placement Agent Warrants were issued to the placement agents of the $16 million credit facility with FB Lending, LLC (See Note 9). The Placement Agent Warrants are valued at $78,000. The Placement Agent Warrants may be exercised at any time or times beginning on the issue date and ending on the five-year anniversary of the issue date. The Company’s warrant activity for the thirty-nine weeks ended September 30, 2018 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Warrants outstanding at December 31, 2017 80,000 $ 15.00 4.06 Grants 745,556 $ 7.51 4.75 Exercised - $ - - Forfeited - $ - - Expired - $ - - Warrants outstanding at September 30, 2018 825,556 $ 8.23 4.68 Warrants exercisable at September 30, 2018 825,556 The weighted average fair value of the warrants granted from the Offering through September 30, 2018 and the assumptions used in the Black-Scholes valuation model are as follows: Warrants Expected dividend yield 4.00% - 6.63 % Expected volatility 31.73 % Risk-free interest rate 0.99% - 1.91 % Expected term (in years) 5.00

Dividends on Common Stock

Dividends on Common Stock	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Dividends on Common Stock	Note 16. DIVIDENDS ON COMMON STOCK The Company’s Board of Directors has declared the following quarterly dividends on common stock during the thirty-nine weeks ended September 30, 2018: Declaration Date Record Date Payment Date Dividend Per Share Amount of Dividend February 8, 2018 March 30, 2018 April 16, 2018 $ 0.12 $ 1,200,000 June 27, 2018 July 6, 2018 July 16, 2018 $ 0.12 1,351,517 $ 2,551,517 Subsequently, on October 8, 2018, the Company declared a cash dividend on its common stock in the amount of $0.12 per share. The dividend was payable on October 31, 2018 to shareholders of record on October 18, 2018. On each dividend payment date, FCCG elected to reinvest all, or a portion of, its dividend from its common shares of the Company at the closing market price of the shares on the payment date. As a result, on April 16, 2018, the Company issued 153,600 shares of common stock to FCCG at a price of $6.25 per share in satisfaction of $960,000 dividend payable. On July 16, 2018, the Company issued 157,765 shares of common stock to FCCG at a price of $6.085 per share in satisfaction of $960,000 dividend payable. On October 31, 2018, FCCG elected to reinvest its dividend for all 9,300,760 shares into newly issued common shares of the Company at the closing market price of common stock on the payment date. The Company issued 176,877 shares of common stock to FCCG at a price of $6.31 per share in satisfaction of the $1,116,091 dividend payable. The issuance of these shares to FCCG was exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act and Rule 506 promulgated under Regulation D under the Securities Act as transactions by an issuer not involving a public offering. FCCG acquired the securities for investment only and not with a view to or for sale in connection with any distribution thereof.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 17. Commitments and Contingencies Litigation Eric Rojany, et al. v. FAT Brands Inc., et al. On June 7, 2018, Eric Rojany filed a complaint, personally and on behalf of all others similarly situated, against the Company, Andrew Wiederhorn, Ron Roe, Fog Cutter Capital Group, Inc., Tripoint Global Equities, LLC and members of the Company’s board of directors. The complaint asserts claims under Sections 12(a)(2) and 15 of the Securities Act of 1933, alleging that the defendants are responsible for false and misleading statements and omitted material facts in connection with the Company’s initial public offering, which resulted in declines in the price of the Company’s common stock. The plaintiff stated that he intends to certify the complaint as a class action and is seeking compensatory damages in an amount to be determined at trial. The Company and other defendants dispute the allegations of the lawsuit and intend to vigorously defend against the claims. Daniel Alden, et al. v. FAT Brands Inc., et al. On August 2, 2018, Daniel Alden and others filed a complaint, personally and on behalf of all others similarly situated, against the Company, Andrew Wiederhorn, Ron Roe, Fog Cutter Capital Group, Inc., Tripoint Global Equities, LLC and members of the Company’s board of directors. The complaint asserts claims under Sections 12(a)(2) and 15 of the Securities Act of 1933, alleging that the defendants are responsible for false and misleading statements and omitted material facts in connection with the Company’s initial public offering, which resulted in declines in the price of the Company’s common stock. The plaintiff stated that he intends to certify the complaint as a class action and is seeking compensatory damages in an amount to be determined at trial. The Company and other defendants dispute the allegations of the lawsuit and intend to vigorously defend against the claims. On September 13, 2018, counsel to all parties in Rojany Alden Rojany Alden Rojany Rojany Alden Rojany On October 10, 2018, plaintiffs in these actions filed a consolidated amended complaint (“CAC”). Pursuant to the Court’s order on September 17, 2018, defendants shall have until November 13, 2018 to file a response to the CAC. The Court scheduled the hearing for defendants’ anticipated demurrer to the CAC for January 11, 2019. The Court also continued a stay of discovery in the action, pending its ruling on defendants’ anticipated demurrer. Adam Vignola, et al. v. FAT Brands Inc., et al. On August 24, 2018, Adam Vignola filed a complaint, personally and on behalf of all others similarly situated, against the Company, Andrew Wiederhorn, Ron Roe, Fog Cutter Capital Group, Inc., Tripoint Global Equities, LLC and members of the Company’s board of directors. The complaint asserts claims under Sections 12(a)(2) and 15 of the Securities Act of 1933, alleging that the defendants are responsible for false and misleading statements and omitted material facts in connection with the Company’s initial public offering, which resulted in declines in the price of the Company’s common stock. The plaintiff stated that he intends to certify the complaint as a class action and is seeking compensatory damages in an amount to be determined at trial. The Company and other defendants dispute the allegations of the lawsuit and intend to vigorously defend against the claims. On October 23, 2018, Charles Jordan and David Kovacs filed a motion for appointment as lead plaintiffs and approval of choice of counsel. On the same day, Randy Siade filed a motion for appointment as lead plaintiff and approval of choice of counsel. The hearing date for these motions was set for November 26, 2018. On November 1, 2018, Randy Siade withdrew his motion for appointment as lead plaintiff and approval of choice of counsel. All discovery and other proceedings in this action are currently stayed by operation of the Private Securities Litigation Reform Act of 1995. P&K Food Market, Inc. vs. Buffalo’s Franchise Concepts, Inc., Fog Cutter Capital Group, Shaun Curtis, Andy Wiederhorn et al., Superior Court of California for the County of Los Angeles, Case No. 18STLC09534. On July 13, 2018, P&K Food Market, Inc. (“P&K”) filed a complaint against Buffalo’s Franchise Concepts, Inc., Fog Cutter Capital Group, Shaun Curtis, and Andy Wiederhorn for Breach of Contract, Fraudulent Misrepresentation and Unlawful Offer and Sale of Franchise By Means of Untrue Statements or Omissions of Material Fact Under Cal. Corp. Code §§31201; 31202; 31300; and 31301. The case was filed in connection with the sale of an affiliate-owned “Buffalo’s Café” restaurant located in Palmdale, California. The lawsuit seeks general damages, special damages, punitive damages, restitution, interest, costs and attorneys’ fees and costs related to the alleged unlawful sale of the Palmdale restaurant. The franchisor and related parties intend to vigorously defend the allegations. The Company is obligated to indemnify its officers and directors to the extent permitted by applicable law in connection with the above actions, and has insurance for such individuals, to the extent of the limits of the applicable insurance policies and subject to potential reservations of rights. The Company is also obligated to indemnify Tripoint Global Equities, LLC under certain conditions relating to the Rojany, Vignola and Alden matters. These proceedings are in their early stages and the Company is unable to predict the ultimate outcome of these matters. There can be no assurance that the defendants will be successful in defending against these actions. The Company is involved in other claims and legal proceedings from time-to-time that arise in the ordinary course of business. The Company does not believe that the ultimate resolution of these actions will have a material adverse effect on its business, financial condition, results of operations, liquidity or capital resources. Operating Leases The Company leases corporate headquarters located in Beverly Hills, California comprising 5,478 square feet of space, pursuant to a lease that expires on April 30, 2020. We believe that all our existing facilities are in good operating condition and adequate to meet our current and foreseeable needs.

Geographic Information and Majo

Geographic Information and Major Franchisees	9 Months Ended
	Sep. 30, 2018
Geographic Information And Major Franchisees
Geographic Information and Major Franchisees	Note 18. geographic information AND MAJOR FRANCHISEES R Thirteen Weeks Ended September 30, 2018 Thirty-nine Weeks Ended September 30, 2018 United States $ 4,155 $ 9,798 Other countries 1,709 3,559 Total revenues $ 5,864 $ 13,357 Revenues are shown based on the geographic location of our licensee restaurants. All our assets are located in the United States. During the thirteen and thirty-nine weeks ended September 30, 2018, no individual franchisee accounted for more than 10% of the Company’s revenues.

Operating Segments

Operating Segments	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Operating Segments	NOTE 19. OPERATING SEGMENTS Operating segments consist of (i) franchising operations conducted through Fatburger, (ii) franchising operations conducted through Buffalo’s, (iii) franchising operations conducted through Ponderosa and (iv) franchising operations conducted through Hurricane. Each segment operates with its own management and personnel, with additional centralized support from the Company. The actual cost of the support provided by the Company is allocated to each operating segment. The following is a summary of each of the operating segments for the thirty-nine weeks ended September 30, 2018 (dollars in thousands): Fatburger Buffalo’s Ponderosa Hurricane Combined Revenues Royalties $ 3,948 $ 1,000 $ 3,029 $ 825 $ 8,802 Franchise fees 1,884 113 28 16 2,041 Store opening fees 205 - - - 205 Advertising fees 879 436 469 480 2,264 Management fees 45 - - - 45 Total revenues 6,961 1,549 3,526 1,321 13,357 Expenses General and administrative 3,279 1,053 2,795 1,192 8,319 Income from operations 3,682 496 731 129 5,038 Other income (expense) 183 444 (78 ) (133 ) 416 Income (loss) before income tax expense $ 3,865 $ 940 $ 653 $ (4 ) $ 5,454 Reconciliation to consolidated net income (in thousands Thirty-nine Weeks Ended September 30, 2018 Combined segment net income before taxes $ 5,454 Corporate general and administrative expenses (1,161 ) Corporate other expense, net (2,906 ) Income tax expense (495 ) Net income $ 892

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	NOTE 20. SUBSEQUENT EVENTS Pursuant to FASB ASC 855, Management has evaluated all events and transactions that occurred from September 30, 2018 through the date of issuance of these financial statements. During this period, the Company did not have any significant subsequent events, except as disclosed below: Dividend Payable On October 8, 2018, the Company declared a cash dividend on its common stock in the amount of $0.12 per share. The dividend was payable on October 31, 2018 to shareholders of record on October 18, 2018. On October 31, 2018, FCCG was entitled to receive a cash dividend from the Company which had been declared on October 8, 2018. FCCG elected to reinvest its dividend from its 9,300,760 common shares in the amount of $1,116,091 in newly issued common shares of the Company at $6.31 per share, which was the closing market price of the shares on that date. As a result, the Company issued 176,877 shares of common stock to FCCG in satisfaction of the dividend payable. The issuance of the shares to FCCG described above was exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act and Rule 506 promulgated under Regulation D under the Securities Act as transactions by an issuer not involving a public offering. FCCG acquired the securities for investment only and not with a view to or for sale in connection with any distribution thereof. (See Note 16).

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Nature of Operations	Nature of operations Fatburger restaurants serve a variety of freshly made-to-order Fatburgers, Turkeyburgers, Chicken Sandwiches, Veggieburgers, French fries, onion rings, soft-drinks and milkshakes. Buffalo’s grants franchises for the operation of casual dining restaurants (Buffalo’s Southwest Cafés) and quick service restaurants outlets (Buffalo’s Express). These restaurants specialize in the sale of Buffalo-Style chicken wings, chicken tenders, burgers, ribs, wrap sandwiches, and salads. Hurricane restaurants have a tropical, laid-back vibe and are known for jumbo fresh wings with more than 35 signature sauces and rubs. Hurricane Grill & Wings’ menu includes Hurricane’s Garlic & Parmesan fries, tasty salads, seafood entrees and fresh ½ pound burgers. The brand’s signature Rum Bar with over 21 premium rums leads its tropical drinks menu, along with a wide selection of craft beers and wines. Ponderosa and Bonanza Steakhouses offer guests a high-quality buffet and broad array of great tasting, affordably-priced steak, chicken and seafood entrées. Buffets at Ponderosa and Bonanza Steakhouses feature a large variety of all you can eat salads, soups, appetizers, vegetables, breads, hot main courses and desserts. Bonanza Steak & BBQ operates full service steakhouses with fresh farm-to-table salad bar, including a menu showcase of USDA flame-grilled steaks, house-smoked BBQ and contemporized interpretations of traditional American classics. The Company also co-brands its franchise concepts. These co-branded restaurants sell products of multiple affiliated brands and share back-of-the-house facilities. The Company operates on a 52-week calendar and its fiscal year ends on the Sunday closest to December 31. Consistent with the industry practice, the Company measures its stores’ performance based upon 7-day work weeks. Using the 52-week cycle ensures consistent weekly reporting for operations and ensures that each week has the same days, since certain days are more profitable than others. The use of this fiscal year means a 53 rd
Principles of Consolidation	Principles of consolidation
Use of Estimates in the Preparation of the Consolidated Financial Statements	Use of estimates in the preparation of the consolidated financial statements
Financial Statement Reclassification	Financial Statement Reclassification
Cash and Cash Equivalents	Cash and Cash Equivalents
Accounts Receivable	Accounts receivable
Trade Notes Receivable	Trade notes receivable –
Goodwill and Other Intangible Assets	Goodwill and other intangible assets
Income Taxes	Income taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. We utilize a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon the ultimate settlement.
Franchise Fees and Royalty Revenue	Franchise fees and royalty revenue
Store Opening Fees	Store opening fees –
Advertising	Advertising –
Share-based Compensation	Share-based compensation
Earnings Per Share	Earnings per share
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts With Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods and services to customers. The updated standard replaces most existing revenue recognition guidance in U.S. GAAP. These standards became effective for the Company on January 1, 2018. These standards require that the transaction price received from customers be allocated to each separate and distinct performance obligation. The transaction price attributable to each separate and distinct performance obligation is then recognized as the performance obligations are satisfied as specified in the contract. The agreements for services provided by the Company related to upfront fees received from franchisees (such as initial or renewal fees) do not currently contain separate and distinct performance obligations from the franchise right and thus those upfront fees will be recognized as revenue over the term of each respective franchise agreement. Previously, we recognized upfront franchise fees such as initial and renewal fees when the related services have been provided, which is when a store opened for initial fees and when renewal options became effective for renewal fees. These standards require any unamortized portion of fees received prior to adoption be presented in the consolidated balance sheet as a contract liability. The new standards also had an impact on transactions previously not included in the Company’s revenues and expenses such as franchisee contributions to and subsequent expenditures from advertising arrangements we have with our franchisees. The Company did not previously include these contributions and expenditures in its consolidated statements of operations or cash flows. Under the new standards, the Company will recognize advertising fees and the related expense in its consolidated statements of operations or cash flows. The Company will also consolidate the assets and liabilities related to advertising funds on its balance sheet. These standards will not impact the recognition of our sales-based royalties from franchisees, which is generally our largest source of revenue. We have implemented internal controls related to the recognition and presentation of the Company’s revenues under these new standards. The Company adopted ASU 2014-09 on January 1, 2018 using the modified retrospective method, in which the cumulative effect of applying the standard would be recognized at the date of initial application. An adjustment to increase deferred revenue in the amount of $3,482,000 was established on the date of adoption relating to fees received through December 31, 2017 that would have been deferred and recognized over the term of each respective franchise store agreement if the new guidance had been applied in the past. A deferred tax asset of $810,000 related to this contract liability was also established on the date of adoption. These adjustments had the effect of increasing beginning accumulated deficit by approximately $2,672,000. Adopting the new accounting standards for revenue affected several financial statement line items for the thirty-nine weeks ended September 30, 2018. The following tables provide the affected amounts as reported in these Unaudited Consolidated Financial Statements compared with what they would have been if the previous accounting guidance had remained in effect. As of September 30, 2018 (in thousands) Amounts As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Balance Sheet: Cash $ 1,859 $ 1,405 Accounts receivable $ 2,230 $ 1,642 Other current assets $ 774 $ 760 Due from affiliates $ 12,998 $ 12,804 Deferred income taxes $ 1,771 $ 959 Buffalo’s Creative and Advertising Fund $ - $ 356 Buffalo’s Creative and Advertising Fund - Contra $ - $ 356 Accounts payable $ 3,352 $ 2,482 Deferred income $ 7,774 $ 4,555 Accrued expenses $ 2,507 $ 2,117 Accrued advertising $ 164 $ 515 Accumulated deficit $ (2,393 ) $ (324 ) For the thirty-nine weeks ended September 30, 2018 (in thousands except per share data) As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Statement of Operations: Franchise fees and store opening fees $ 2,246 $ 1,643 Advertising fees $ 2,264 $ - Advertising expense $ 2,264 $ - Net income $ 892 $ 289 Earnings per common share - basic $ 0.08 $ 0.03 Earnings per common share - diluted $ 0.08 $ 0.03 For the thirty-nine weeks ended September 30, 2018 (in thousands) As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Statement of Cash Flows: Net income $ 892 $ 289 Adjustments to reconcile net income to net cash provided by operating activities: Accounts receivable $ (805 ) $ (724 ) Deferred income $ (1,665 ) 842 Accounts payable and accrued expenses $ 1,033 $ 399 Accrued advertising $ (475 ) $ 167 Increase in due from affiliates $ (4,262 ) $ (4,841 ) In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to reduce diversity in practice in how transactions are classified in the statement of cash flows. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), requiring a lessee to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with a lease term of more than twelve months. Leases will continue to be classified as either financing or operating, with classification affecting the recognition, measurement and presentation of expenses and cash flows arising from a lease. This ASU is effective for interim and annual period beginning after December 15, 2018 and requires a modified retrospective approach to adoption for lessees related to capital and operating leases existing at, or entered into after, the earliest comparative period presented in the financial statements, with certain practical expedients available. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. The primary effect of adopting this ASU will be to record assets and obligations for the Company’s operating leases. In June 2018, the FASB issued ASU No.2018-07, Compensation- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Prior to this update, Top 718 applied only to share-based transactions to employees. Consistent with the accounting requirements for employee share-based payment awards, nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The amendments in the update are effective for public business entities form fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The adoption of this accounting standard is not expected to have a material effect on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU 2018-09, Codification Improvements. This ASU makes amendments to multiple codification Topics. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments in this ASU do not require transition guidance and will be effective upon issuance of this ASU. However, many of the amendments in this ASU do have transition guidance with effective dates for annual periods beginning after December 15, 2018. The Company is currently assessing the effect that this ASU will have on its financial position, results of operations, and disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU adds, modifies and removes several disclosure requirements relative to the three levels of inputs used to measure fair value in accordance with Topic 820, “Fair Value Measurement.” This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. Early adoption is permitted. The Company is currently assessing the effect that this ASU will have on its financial position, results of operations, and disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Schedule of Affected Amounts Reported in Financial Statements	The following tables provide the affected amounts as reported in these Unaudited Consolidated Financial Statements compared with what they would have been if the previous accounting guidance had remained in effect. As of September 30, 2018 (in thousands) Amounts As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Balance Sheet: Cash $ 1,859 $ 1,405 Accounts receivable $ 2,230 $ 1,642 Other current assets $ 774 $ 760 Due from affiliates $ 12,998 $ 12,804 Deferred income taxes $ 1,771 $ 959 Buffalo’s Creative and Advertising Fund $ - $ 356 Buffalo’s Creative and Advertising Fund - Contra $ - $ 356 Accounts payable $ 3,352 $ 2,482 Deferred income $ 7,774 $ 4,555 Accrued expenses $ 2,507 $ 2,117 Accrued advertising $ 164 $ 515 Accumulated deficit $ (2,393 ) $ (324 ) For the thirty-nine weeks ended September 30, 2018 (in thousands except per share data) As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Statement of Operations: Franchise fees and store opening fees $ 2,246 $ 1,643 Advertising fees $ 2,264 $ - Advertising expense $ 2,264 $ - Net income $ 892 $ 289 Earnings per common share - basic $ 0.08 $ 0.03 Earnings per common share - diluted $ 0.08 $ 0.03 For the thirty-nine weeks ended September 30, 2018 (in thousands) As Reported Amounts Under Previous Accounting Guidance Unaudited Consolidated Statement of Cash Flows: Net income $ 892 $ 289 Adjustments to reconcile net income to net cash provided by operating activities: Accounts receivable $ (805 ) $ (724 ) Deferred income $ (1,665 ) 842 Accounts payable and accrued expenses $ 1,033 $ 399 Accrued advertising $ (475 ) $ 167 Increase in due from affiliates $ (4,262 ) $ (4,841 )

Hurricane Acquisition (Tables)

Hurricane Acquisition (Tables)	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Schedule of Allocation of Tangible and Intangible Assets Acquired	The allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in thousands): Cash $ 358 Accounts receivable 389 Notes receivable 2,184 Other current assets 760 Intangible assets 11,020 Goodwill 754 Accounts payable and accrued expenses (723 ) Deferred franchise fees (1,885 ) Other liabilities (357 ) Total net identifiable assets $ 12,500
Schedule of Revenue and Earnings	The following table provides information regarding the revenue and earnings of Hurricane included in the accompanying consolidated financial statements since July 3, 2018 (in thousands): Hurricane Revenues Royalties $ 825 Franchise fees 16 Advertising fees 480 Total revenues 1,321 Expenses General and administrative 1,192 Income from operations 129 Other expense (133 ) Loss before income tax benefit (4 ) Income tax benefit (1 ) Net loss $ (3 )
Schedule of Pro Forma Revenue and Earnings	The following unaudited pro forma information presents the revenue and earnings of Hurricane as if it had been acquired on January 1, 2018 (the beginning of the Company’s fiscal year) through September 30, 2018 (in thousands): Pro Forma Hurricane Revenues Royalties $ 2,519 Franchise fees 48 Advertising fees 1,362 Total revenues 3,929 Expenses General and administrative 4,310 Loss from operations (381 ) Other expense (263 ) Loss before income tax benefit (644 ) Income tax benefit (180 ) Net loss $ (464 )

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Goodwill consists of the following (in thousands): September 30, 2018 December 31, 2017 Goodwill: Fatburger $ 529 $ 529 Buffalo’s 5,365 5,365 Hurricane 754 - Ponderosa 1,462 1,462 Total goodwill $ 8,110 $ 7,356

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consist of the following (in thousands): September 30, 2018 December 31, 2017 Trademarks: Fatburger $ 2,135 $ 2,135 Buffalo’s 27 27 Hurricane 6,840 - Ponderosa 7,230 7,230 Total trademarks 16,232 9,392 Franchise agreements: Hurricane – cost 4,180 - Hurricane – accumulated amortization (80 ) - Ponderosa – cost 1,640 1,640 Ponderosa – accumulated amortization (105 ) (21 ) Total franchise agreements 5,635 1,619 Total $ 21,867 $ 11,011
Schedule of Future Amortization	The expected future amortization of the Company’s capitalized franchise agreements is as follows (in thousands): Fiscal year: 2018 $ 107 2019 432 2020 432 2021 432 2022 432 Thereafter 3,800 Total $ 5,635

Deferred Income (Tables)

Deferred Income (Tables)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Deferred Income	Deferred income is as follows (in thousands): September 30, 2018 December 31, 2017 Deferred franchise fees $ 7,062 $ 2,781 Deferred royalties 712 932 Total $ 7,774 $ 3,713

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Deferred Tax Assets and Liabilities	Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): September 30, 2018 December 31, 2017 Deferred tax assets (liabilities) Deferred income $ 1,872 $ 882 Reserves and accruals 426 451 Intangibles (538 ) (372 ) Deferred state income tax (62 ) (25 ) Other 73 1 Total $ 1,771 $ 937
Schedule of Components of the Income Tax Provision (Benefit)	Components of the income tax provision are as follows (in thousands): Thirty-nine Weeks Ended September 30, 2018 Current Federal $ 49 State 142 Foreign 318 509 Deferred Federal 78 State (92 ) (14 ) Total income tax provision $ 495
Schedule of Pretax Loss	Income tax provision related to continuing operations differ from the amounts computed by applying the statutory income tax rate of 21% to pretax income as follows (in thousands): Thirty-nine Weeks Ended September 30, 2018 Tax provision at statutory rate 21 % State and local income taxes 3 % Foreign taxes 2 % Share based compensation 11 % Other (1 )% Total income tax provision 36 %

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of Aggregate Values Assigned Upon Issuance of Each Component	The aggregate values assigned upon issuance of each component were as follows (in thousands): Warrants (equity component) Term Loan (debt component) Total Gross proceeds $ 571 $ 15,429 $ 16,000 Issuance costs - 760 760 Net proceeds $ 571 $ 14,669 $ 15,240 Balance sheet impact at issuance: Long-term debt, net of discount and offering costs $ - $ 14,669 $ 14,669 Additional paid-in capital $ 571 $ - $ 571

Mandatorily Redeemable Prefer_2

Mandatorily Redeemable Preferred Stock (Tables)	9 Months Ended
	Sep. 30, 2018
Series A Preferred Stock [Member]
Schedule of Mandatorily Redeemable Preferred Stock	The aggregate values assigned upon issuance of each component were as follows (amounts in thousands, except price per unit): Series A Warrants (equity component) Mandatorily Redeemable Series A Preferred Stock (debt component) Total Subscription Agreement: Gross proceeds $ 87 $ 7,913 $ 8,000 Issuance costs - 15 15 Net proceeds 87 7,898 7,985 Exchange Shares: 25 1,975 2,000 Total proceeds $ 112 $ 9,873 $ 9,985 Subscription price per unit $ 108.75 $ 9,891.25 $ 10,000 Balance sheet impact at issuance: Long-term debt, net of debt discount and offering costs $ - $ 9,873 $ 9,873 Additional paid-in capital $ 112 $ - $ 112
Series A-1 Preferred Stock [Member]
Schedule of Mandatorily Redeemable Preferred Stock	The aggregate values assigned upon issuance of each component were as follows (amounts in thousands, except price per unit): Conversion Feature (equity component) Hurricane Warrants (equity component) Mandatorily Redeemable Series A-1 Preferred Stock (debt component) Total Hurricane Acquisition: Gross proceeds $ 90 $ 91 $ 4,319 $ 4,500 Issuance costs - - 35 35 Net proceeds $ 90 $ 91 $ 4,284 $ 4,465 Subscription price per unit $ 201.07 $ 201.07 $ 9,597.86 $ 10,000 Balance sheet impact at issuance: Long-term debt, net of debt discount and offering costs $ - $ - $ 4,284 $ 4,284 Additional paid-in capital $ 90 $ 91 $ - $ 181

Stock Options (Tables)

Stock Options (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Schedule of Stock Option Activity	The Company’s stock option activity for the thirty-nine weeks ended September 30, 2018 can be summarized as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Stock options outstanding at December 31, 2017 362,500 $ 12.00 9.31 Grants 50,000 $ 10.00 9.6 Forfeited (30,000 ) $ 12.00 - Expired - $ - - Stock options outstanding at September 30, 2018 382,500 $ 11.74 9.1 Stock options exercisable at September 30, 2018 -
Schedule of Assumptions Used for Stock-based Compensation	The assumptions used in the Black-Scholes valuation model to record the stock-based compensation are as follows: Including Non-Employee Options Expected dividend yield 4.00% - 7.49 % Expected volatility 31.73 % Risk-free interest rate 1.60% - 2.85 % Expected term (in years) 5.50 – 9.06

Warrants (Tables)

Warrants (Tables)	9 Months Ended
	Sep. 30, 2018
Other Liabilities Disclosure [Abstract]
Summary of Warrant Activity	The Company’s warrant activity for the thirty-nine weeks ended September 30, 2018 is as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Warrants outstanding at December 31, 2017 80,000 $ 15.00 4.06 Grants 745,556 $ 7.51 4.75 Exercised - $ - - Forfeited - $ - - Expired - $ - - Warrants outstanding at September 30, 2018 825,556 $ 8.23 4.68 Warrants exercisable at September 30, 2018 825,556
Schedule of Assumptions Used for Stock-based Compensation, Warrants	The weighted average fair value of the warrants granted from the Offering through September 30, 2018 and the assumptions used in the Black-Scholes valuation model are as follows: Warrants Expected dividend yield 4.00% - 6.63 % Expected volatility 31.73 % Risk-free interest rate 0.99% - 1.91 % Expected term (in years) 5.00

Dividends on Common Stock (Tabl

Dividends on Common Stock (Tables)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Schedule of Quarterly Dividends	The Company’s Board of Directors has declared the following quarterly dividends on common stock during the thirty-nine weeks ended September 30, 2018: Declaration Date Record Date Payment Date Dividend Per Share Amount of Dividend February 8, 2018 March 30, 2018 April 16, 2018 $ 0.12 $ 1,200,000 June 27, 2018 July 6, 2018 July 16, 2018 $ 0.12 1,351,517 $ 2,551,517

Geographic Information and Ma_2

Geographic Information and Major Franchisees (Tables)	9 Months Ended
	Sep. 30, 2018
Geographic Information And Major Franchisees
Schedule of Revenues by Geographic Area	R Thirteen Weeks Ended September 30, 2018 Thirty-nine Weeks Ended September 30, 2018 United States $ 4,155 $ 9,798 Other countries 1,709 3,559 Total revenues $ 5,864 $ 13,357

Operating Segments (Tables)

Operating Segments (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of Operating Segments	The following is a summary of each of the operating segments for the thirty-nine weeks ended September 30, 2018 (dollars in thousands): Fatburger Buffalo’s Ponderosa Hurricane Combined Revenues Royalties $ 3,948 $ 1,000 $ 3,029 $ 825 $ 8,802 Franchise fees 1,884 113 28 16 2,041 Store opening fees 205 - - - 205 Advertising fees 879 436 469 480 2,264 Management fees 45 - - - 45 Total revenues 6,961 1,549 3,526 1,321 13,357 Expenses General and administrative 3,279 1,053 2,795 1,192 8,319 Income from operations 3,682 496 731 129 5,038 Other income (expense) 183 444 (78 ) (133 ) 416 Income (loss) before income tax expense $ 3,865 $ 940 $ 653 $ (4 ) $ 5,454
Schedule of Reconciliation to Consolidated Net Income	Reconciliation to consolidated net income (in thousands Thirty-nine Weeks Ended September 30, 2018 Combined segment net income before taxes $ 5,454 Corporate general and administrative expenses (1,161 ) Corporate other expense, net (2,906 ) Income tax expense (495 ) Net income $ 892

Organization and Relationships

Organization and Relationships (Details Narrative) - USD ($) $ in Thousands	Jul. 03, 2018	Oct. 20, 2017
Equity ownership percentage		20.00%
Hurricane AMT, LLC [Member]
Purchase price of acquisition	$ 12,500

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Store opening fees	$ 100	$ 205
Adjustment to increase deferred revenue			$ 3,482
Cumulative adjustments in accumulated deficit	$ 2,672	2,672
Contract Liability [Member]
Deferred tax asset on contract liability		810
Domestic Stores [Member]
Store opening fees		45
International Stores [Member]
Store opening fees		$ 60
Domestic and International Stores [Member]
Store opening description		If the fees collected are less than the respective store opening fee amounts, the full up-front fees are recognized at opening. The $45,000 and $60,000 are based on out-of-pocket costs to the Company for each store opening and are primarily comprised of labor expenses associated with training, store design, and supply chain setup.
Tax Sharing Agreement [Member]
Income tax likely being realized		The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon the ultimate settlement.
Minimum [Member]
Interest rate percentage	6.00%	6.00%
Royalty fee percentage	0.75%	0.75%
Maximum [Member]
Interest rate percentage	7.50%	7.50%
Royalty fee percentage	6.00%	6.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Affected Amounts Reported in Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 02, 2018	Sep. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Cash		$ 1,859	$ 1,859	$ 32
Accounts receivable		2,230	2,230	918
Other current assets		774	774	153
Due from affiliates		12,998	12,998	7,963
Deferred income taxes		1,771	1,771	937
Buffalo's Creative and Advertising Fund
Buffalo's Creative and Advertising Fund - Contra
Accounts payable		3,352	3,352	2,439
Deferred income		1,136	1,136	1,772
Accrued expenses		2,507	2,507	1,761
Accrued advertising		164	164	348
Accumulated deficit		(2,393)	(2,393)	$ (613)
Franchise fees and store opening fees			2,246
Advertising fees		1,038	2,264
Advertising expense			2,264
Net income	$ 98	$ 10	$ 892
Earnings per common share - basic		$ 0	$ 0.08
Earnings per common share - diluted		$ 0	$ 0.08
Accounts receivable			$ (805)
Deferred income			(1,665)
Accounts payable and accrued expenses			1,033
Accrued advertising			(475)
Increase in due from affiliates			(4,262)
Amounts Under Previous Accounting Guidance [Member]
Cash		$ 1,405	1,405
Accounts receivable		1,642	1,642
Other current assets		760	760
Due from affiliates		12,804	12,804
Deferred income taxes		959	959
Buffalo's Creative and Advertising Fund		356	356
Buffalo's Creative and Advertising Fund - Contra		356	356
Accounts payable		2,482	2,482
Deferred income		4,555	4,555
Accrued expenses		2,117	2,117
Accrued advertising		515	515
Accumulated deficit		$ (324)	(324)
Franchise fees and store opening fees			1,643
Advertising fees
Advertising expense
Net income			$ 289
Earnings per common share - basic			$ 0.03
Earnings per common share - diluted			$ 0.03
Accounts receivable			$ (724)
Deferred income			842
Accounts payable and accrued expenses			399
Accrued advertising			167
Increase in due from affiliates			$ (4,841)

Hurricane Acquisition (Details

Hurricane Acquisition (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 03, 2018	Jan. 02, 2018	Sep. 30, 2018	Sep. 30, 2018	Jun. 27, 2018	Jun. 07, 2018	Oct. 20, 2017
Number of warrants to purchase common stock					25,000	100,000	80,000
Exercise price per share					$ 8	$ 8	$ 15
Professional fees			$ 513	$ 1,071
Net income		$ 98	$ 10	892
Hurricane Acquisition [Member]
Net income				892
Financing carrying costs				529
Series A-1 Preferred Stock [Member]
Number of warrants to purchase common stock	125
Exercise price per share	$ 8
Preferred stock stated liquidation preference per share	$ 100
Preferred stock, dividend rate, percentage	6.00%
Preferred stock, redemption per share	$ 100
Accrued and unpaid dividends per share	100
Common stock, redemption rate per share	$ 12
Hurricane AMT, LLC [Member]
Purchase price of business	$ 12,500
Payment of cash to acquire business	8,000
Issuance of equity	4,500
Equity units value per unit	$ 10
Number of units sold	450
Fees and expenses related to acquisition				$ 206
Intangible asset remaining terms				13 years
Effective tax rate percentage			28.00%	28.00%
Hurricane AMT, LLC [Member] | Series A-1 Fixed Rate Cumulative Preferred Stock [Member]
Number of preferred shares designated	100

Hurricane Acquisition - Schedul

Hurricane Acquisition - Schedule of Allocation of Tangible and Intangible Assets Acquired (Details) $ in Thousands	Sep. 30, 2018USD ($)
Business Combinations [Abstract]
Cash	$ 358
Accounts receivable	389
Notes receivable	2,184
Other current assets	760
Intangible assets	11,020
Goodwill	754
Accounts payable and accrued expenses	(723)
Deferred franchise fees	(1,885)
Other liabilities	(357)
Total net identifiable assets	$ 12,500

Hurricane Acquisition - Sched_2

Hurricane Acquisition - Schedule of Revenue and Earnings (Details) - USD ($) $ in Thousands	Jul. 03, 2018	Sep. 30, 2018
Business Combinations [Abstract]
Revenues: Royalties	$ 825
Revenues: Franchise fees	16
Advertising fees	480	$ 1,362
Total revenues	1,321
Expenses: General and administrative	1,192
Loss from operations	129
Other expense	(133)
Loss before income tax expense	(4)	$ (644)
Income tax benefit	(1)
Net income	$ (3)

Hurricane Acquisition - Sched_3

Hurricane Acquisition - Schedule of Pro Forma Revenue and Earnings (Details) - USD ($) $ in Thousands	Jul. 03, 2018	Sep. 30, 2018
Business Combinations [Abstract]
Revenues: Royalties		$ 2,519
Revenues: Franchise fees		48
Advertising fees	$ 480	1,362
Total revenues		3,929
Expenses: General and administrative		4,310
Income from operations		(381)
Other Income		(263)
Loss before income tax benefit	$ (4)	(644)
Income tax benefit		(180)
Net income		$ (464)

Notes Receivable (Details Narra

Notes Receivable (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Advances to affiliates	$ 2,163
Notes receivable	381
Notes receivable, reserves	$ 34
Minimum [Member]
Debt instrument rate of interest	6.00%
Maximum [Member]
Debt instrument rate of interest	7.50%

Goodwill - Schedule of Goodwill

Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Total goodwill	$ 8,110	$ 7,356
Fatburger [Member]
Total goodwill	529	529
Buffalo's [Member]
Total goodwill	5,365	5,365
Hurricane [Member]
Total goodwill	754
Ponderosa [Member]
Total goodwill	$ 1,462	$ 1,462

Other Intangible Assets - Sched

Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Total trademarks	$ 16,232	$ 9,392
Total franchise agreements	5,635	1,619
Total	21,867	11,011
Fatburger [Member]
Total trademarks	2,135	2,135
Buffalo's [Member]
Total trademarks	27	27
Hurricane [Member]
Total trademarks	6,840
Hurricane [Member] | Franchise Agreements [Member]
Cost	4,180
Accumulated amortization	(80)
Ponderosa [Member]
Total trademarks	7,230	7,230
Ponderosa [Member] | Franchise Agreements [Member]
Cost	1,640	1,640
Accumulated amortization	$ (105)	$ (21)

Other Intangible Assets - Sch_2

Other Intangible Assets - Schedule of Future Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2,018	$ 107
2,019	432
2,020	432
2,021	432
2,022	432
Thereafter	3,800
Total	$ 5,635	$ 1,619

Deferred Income - Schedule of D

Deferred Income - Schedule of Deferred Income (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Deferred franchise fees	$ 7,062	$ 2,781
Deferred royalties	712	932
Total	$ 7,774	$ 3,713

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - FCCG [Member] $ in Thousands	Sep. 30, 2018USD ($)
Due from related party	$ 12,998
Taxes payable	$ 74

Income Taxes - Schedule of Comp

Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Deferred income	$ 1,872	$ 882
Reserves and accruals	426	451
Intangibles	(538)	(372)
Deferred state income tax	(62)	(25)
Other	73	1
Total	$ 1,771	$ 937

Income Taxes - Schedule of Co_2

Income Taxes - Schedule of Components of the Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Current: Federal		$ 49
Current: State		142
Current: Foreign		318
Current Income Tax Expense (Benefit), Total		509
Deferred: Federal		78
Deferred: State		(92)
Deferred: Income Tax Expense (Benefit), Total		(14)
Total income tax provision	$ 199	$ 495

Income Taxes - Schedule of Pret

Income Taxes - Schedule of Pretax Loss (Details)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Tax provision at statutory rate	21.00%
State and local income taxes	3.00%
Foreign taxes	2.00%
Share based compensation	11.00%
Other	(1.00%)
Total income tax provision	36.00%

Income Taxes - Schedule of Pr_2

Income Taxes - Schedule of Pretax Loss (Details) (Parenthetical)	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Statutory income tax rate	21.00%

Debt (Details Narrative)

Debt (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 03, 2018	Apr. 27, 2018	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2018	Jun. 27, 2018	Jun. 07, 2018	Oct. 20, 2017
Interest expense			$ 991		$ 1,427
Number of warrants to purchase common stock						25,000	100,000	80,000
Exercise price per share						$ 8	$ 8	$ 15
Term Loan [Member]
Line of credit			14,938	$ 14,938	14,938
Interest expense				664	664
Debt discount			397	397	397
Line of credit gross			$ 16,000	16,000	16,000
Unamortized debt offering costs					665
Accretion expense				174	174
Amortization of debt offering costs				$ 95	$ 95
Maximum [Member]
Debt interest rate			7.50%	7.50%	7.50%
First Year [Member]
Prepayment penalty percentage	10.00%
Second Year [Member]
Prepayment penalty percentage	5.00%
Members of Hurricane [Member]
Repayment of borrowings	$ 8,000
Securities Purchase Agreement [Member]
Interest expense			$ 12		$ 62
Debt offering cost			$ 130		$ 143
Investment banking fee	$ 170
Loan and Security Agreement [Member]
Debt maturity date	Jun. 30, 2020
Debt interest rate	15.00%
Term loan borrowings	$ 16,000
Loan Agreement [Member] | Maximum [Member]
Debt interest rate	5.00%
Loan Agreement [Member] | Lender [Member]
Number of warrants to purchase common stock	499,000
Exercise price per share	$ 7.35
Loan Agreement [Member] | Placement Agent [Member]
Number of warrants to purchase common stock	65,306
Exercise price per share	$ 7.35
TCA Global Credit Master Fund, LP [Member]
Line of credit		$ 5,000
Proceeds from issuance of debt		$ 2,000
Debt maturity date		Oct. 27, 2019
Debt interest rate		15.00%
Commitment fees, rate		2.00%
Repayment of borrowings	$ 2,000
TCA Global Credit Master Fund, LP [Member] | Banking [Member]
Payment for investment banking fee		$ 170

Debt - Schedule of Aggregate Va

Debt - Schedule of Aggregate Values Assigned Upon Issuance of Each Component (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Gross proceeds	$ 16,000
Issuance costs	760
Net proceeds	15,240
Long-term debt, net of discount and offering costs	14,669
Additional paid-in capital	571
Term Loan [Member]
Gross proceeds	15,429
Issuance costs	760
Net proceeds	14,669
Long-term debt, net of discount and offering costs	14,669
Additional paid-in capital
Warrant [Member]
Gross proceeds	571
Issuance costs
Net proceeds	571
Long-term debt, net of discount and offering costs
Additional paid-in capital	$ 571

Note Payable to FCCG (Details N

Note Payable to FCCG (Details Narrative) - USD ($)	Jun. 27, 2018	Jun. 26, 2018	Oct. 20, 2017	Sep. 30, 2018	Sep. 30, 2018	Jun. 07, 2018
Notes payable, balance		$ 10,222,000
Related party debt balance amount converted	$ 7,272,053
Number of warrants to purchase common stock	25,000		80,000			100,000
Warrants exercise price	$ 8		$ 15			$ 8
Note Exchange Agreement [Member]
Debt principal balance			$ 30,000,000
Related party debt balance amount converted	$ 2,000,000	$ 7,272,053
Number of warrants to purchase common stock	25,000
Warrants exercise price	$ 8
Note Exchange Agreement [Member] | Common Stock [Member]
Number of shares converted		989,395
Conversion price per share		$ 7.35
Note Exchange Agreement [Member] | Series A Fixed Rate Cumulative Preferred Stock [Member]
Number of shares converted	20,000
Conversion price per share	$ 100
Fatburger And Buffalo [Member] | Unsecured Promissory Note [Member]
Debt principal balance			$ 30,000,000
Debt interest rate			10.00%
Maturity term			5 years
Fog Cutter Capital Group Inc [Member]
Debt interest rate			10.00%
Repayments of notes payable		$ 19,778,000
Related party debt balance amount converted	$ 950,000
Interest expense				$ 24,000	$ 888,000
Fog Cutter Capital Group Inc [Member] | Note Exchange Agreement [Member]
Related party debt balance amount converted	$ 9,272,053
FCCG [Member] | Note Exchange Agreement [Member]
Number of warrants to purchase common stock	25,000
Warrants exercise price	$ 8

Mandatorily Redeemable Prefer_3

Mandatorily Redeemable Preferred Stock (Details Narrative) - USD ($)	Jul. 16, 2018	Jul. 16, 2018	Jul. 03, 2018	Jun. 27, 2018	Jun. 27, 2018	Jun. 26, 2018	Jun. 08, 2018	Jun. 07, 2018	Apr. 16, 2018	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2018	Oct. 20, 2017
Warrants issued to purchase shares				25,000	25,000			100,000					80,000
Warrants exercise price				$ 8	$ 8			$ 8					$ 15
Related party debt balance amount converted					$ 7,272,053
Interest expense											$ 991,000	$ 1,427,000
Fog Cutter Capital Group Inc [Member]
Number of shares issued	157,765	157,765			989,395				153,600
Related party debt balance amount converted					$ 950,000
Interest expense										$ 24,000		888,000
Hurricane AMT, LLC [Member]
Number of shares designated			100
Sale of units in transactions			450
Issuance of equity			$ 4,500,000
Equity units value per unit			$ 10,000
Common Stock [Member] | Hurricane AMT, LLC [Member]
Warrants issued to purchase shares			125
Warrants exercise price			$ 8
Subscription Agreement [Member]
Sale of units in transactions								800
Sales price of shares issuance and sale								$ 10,000
Proceeds from initial offering								$ 8,000,000
Subscription Agreement [Member] | Warrant [Member]
Warrants issued to purchase shares								125
Warrants exercise price								$ 8
Subscription Agreement [Member] | Series A Warrants [Member]
Warrants issued to purchase shares								100,000
Note Exchange Agreement [Member]
Warrants issued to purchase shares				25,000	25,000
Warrants exercise price				$ 8	$ 8
Related party debt balance amount converted					$ 2,000,000	$ 7,272,053
Debt instrument, principal amount													$ 30,000,000
Accrued interest													$ 10,222,000
Note Exchange Agreement [Member] | Fog Cutter Capital Group Inc [Member]
Related party debt balance amount converted					$ 9,272,053
Note Exchange Agreement [Member] | Common Stock [Member]
Number of shares converted						989,395
Conversion price per share						$ 7.35
Series A Preferred Stock [Member]
Number of shares designated							100,000
Preferred stock, face value										$ 9,881,000	$ 9,881,000	$ 9,881,000
Liquidation preference shares							$ 100
Cash dividend rate							9.90%					6.00%
Deferred dividend rate							4.00%
Cash redemption price per share							$ 100			$ 100	$ 100	$ 100
Proceeds from initial offering												$ 4,500,000
Interest expense											$ 78,000	78,000
Debt discount										$ 104,000	104,000	104,000
Unamortized debt offering costs												15,000
Interest expense											352,000	430,000
Accretion expense											6,000	8,000
Amortization of debt offering costs											$ 1,000	$ 1,000
Series A Preferred Stock [Member] | Subscription Agreement [Member]
Number of shares issued								80,000
Series A Preferred Stock [Member] | On Or Prior to June 30, 2021 [Member]
Cash redemption price per share										$ 115	$ 115	$ 115
Series A Preferred Stock [Member] | After June 30, 2021 and On Or Prior to June 30, 2022 [Member]
Cash redemption price per share										110	110	110
Series A Preferred Stock [Member] | After June 30, 2022 [Member]
Cash redemption price per share										$ 100	$ 100	$ 100
Series A Fixed Rate Cumulative Preferred Stock [Member]
Proceeds from initial offering												$ 8,000,000
Series A Fixed Rate Cumulative Preferred Stock [Member] | Subscription Agreement [Member]
Number of preferred stock designated								100
Series A Fixed Rate Cumulative Preferred Stock [Member] | Note Exchange Agreement [Member]
Number of preferred stock designated				200	200
Number of shares converted					20,000
Conversion price per share				$ 100	$ 100
Exchange Shares [Member] | Note Exchange Agreement [Member]
Related party debt balance amount converted				$ 7,272,053
Exchange Shares [Member] | Note Exchange Agreement [Member] | Common Stock [Member]
Number of shares converted				989,395
Conversion price per share				$ 7.35	$ 7.35
Series A-1 Preferred Stock [Member]
Number of shares designated			200,000
Preferred stock, face value										$ 4,294,000	$ 4,294,000	$ 4,294,000
Liquidation preference shares			$ 100
Cash dividend rate			6.00%
Cash redemption price per share			$ 100
Warrants issued to purchase shares			125
Warrants exercise price			$ 8
Conversion price per share										$ 12	$ 12	$ 12
Interest expense										$ 67,500		$ 67,500
Debt discount										173,000	$ 173,000	173,000
Unamortized debt offering costs												33,000
Accretion expense										7,600		7,600
Amortization of debt offering costs										$ 1,700		$ 1,700

Mandatorily Redeemable Prefer_4

Mandatorily Redeemable Preferred Stock - Schedule of Mandatorily Redeemable Preferred Stock (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)$ / shares
Issuance costs	$ 760
Net proceeds	7,984
Long-term debt, net of debt discount and offering costs	14,669
Additional paid-in capital	571
Series A Fixed Rate Cumulative Preferred Stock [Member]
Gross proceeds	8,000
Issuance costs	15
Net proceeds	7,985
Exchange shares	2,000
Total proceeds	$ 9,985
Subscription price per unit | $ / shares	$ 10
Long-term debt, net of debt discount and offering costs	$ 9,873
Additional paid-in capital	112
Series A Fixed Rate Cumulative Preferred Stock [Member] | Mandatorily Redeemable Preferred Stock [Member]
Gross proceeds	7,913
Issuance costs	15
Net proceeds	7,898
Exchange shares	1,975
Total proceeds	$ 9,873
Subscription price per unit | $ / shares	$ 9,891.25
Long-term debt, net of debt discount and offering costs	$ 9,873
Additional paid-in capital
Series A Fixed Rate Cumulative Preferred Stock [Member] | Series A Warrants [Member]
Gross proceeds	87
Issuance costs
Net proceeds	87
Exchange shares	25
Total proceeds	$ 112
Subscription price per unit | $ / shares	$ 108.75
Long-term debt, net of debt discount and offering costs
Additional paid-in capital	112
Series A-1 Fixed Rate Cumulative Preferred Stock [Member]
Gross proceeds	4,500
Issuance costs	35
Net proceeds	$ 4,465
Subscription price per unit | $ / shares	$ 10
Long-term debt, net of debt discount and offering costs	$ 4,284
Additional paid-in capital	181
Series A-1 Fixed Rate Cumulative Preferred Stock [Member] | Mandatorily Redeemable Preferred Stock [Member]
Gross proceeds	4,319
Issuance costs	35
Net proceeds	$ 4,284
Subscription price per unit | $ / shares	$ 9,597.86
Long-term debt, net of debt discount and offering costs	$ 4,284
Additional paid-in capital
Series A-1 Fixed Rate Cumulative Preferred Stock [Member] | Conversion Feature [Member]
Gross proceeds	90
Net proceeds	$ 90
Subscription price per unit | $ / shares	$ 201.07
Long-term debt, net of debt discount and offering costs
Additional paid-in capital	90
Series A-1 Fixed Rate Cumulative Preferred Stock [Member] | Hurricane Warrants [Member]
Gross proceeds	91
Net proceeds	$ 91
Subscription price per unit | $ / shares	$ 201.07
Long-term debt, net of debt discount and offering costs
Additional paid-in capital	$ 91

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Jul. 03, 2018	Oct. 20, 2017
Fog Cutter Capital Group Inc [Member]
Due from related party	$ 12,998	$ 12,998
Debt interest rate				10.00%
Accrued interest income receivable	230	711
Taxes payable	$ 74	$ 74
Homestyle Dining LLC [Member]
Debt interest rate			15.00%
Principal amount			$ 4,000

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - USD ($)	Sep. 20, 2018	Jul. 16, 2018	Jul. 16, 2018	Jun. 27, 2018	Jun. 15, 2018	Apr. 16, 2018	Sep. 30, 2018	Dec. 31, 2017
Common stock, shares authorized							25,000,000	25,000,000
Common stock, shares issued							11,353,014	10,000,000
Common stock, shares outstanding							11,353,014	10,000,000
Related party debt balance amount converted				$ 7,272,053
Non-Employees [Member]
Stock issued during period new issues	10,482				41,772
Share issued price per share	$ 8.59				$ 7.90
Fog Cutter Capital Group Inc [Member]
Stock issued during period new issues		157,765	157,765	989,395		153,600
Share issued price per share		$ 6.085	$ 6.085	$ 7.35		$ 6.25
Related party debt balance amount converted				$ 950,000

Stock Options (Details Narrativ

Stock Options (Details Narrative)	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)shares	Sep. 30, 2018USD ($)shares
Options vesting period		3 years
Options vesting description		All of the stock options issued by the Company to date have included a vesting period of three years, with one-third of each grant vesting annually.
Stock based compensation expense	$ 125,000	$ 370,000
Stock based compensation to non-vested grants		$ 355,000
2017 Omnibus Equity Incentive Plan [Member] | Maximum [Member]
Number of shares available for grant | shares	1,000,000	1,000,000

Stock Options - Schedule of Sto

Stock Options - Schedule of Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Equity [Abstract]
Number of Shares, Stock options outstanding, beginning balance	362,500
Number of Shares, Grants	50,000
Number of Shares, Forfeited	(30,000)
Number of Shares, Expired
Number of Shares, Stock options outstanding, ending balance	382,500
Number of Shares, Stock options exercisable, ending balance
Weighted Average Exercise Price, Stock options outstanding, beginning balance | $ / shares	$ 12
Weighted Average Exercise Price, Grants | $ / shares	10
Weighted Average Exercise Price, Forfeited | $ / shares	12
Weighted Average Exercise Price, Stock options outstanding, ending balance | $ / shares	$ 11.74
Weighted Average Remaining Contractual Life (Years), Stock options outstanding, beginning balance	9 years 3 months 22 days
Weighted Average Remaining Contractual Life (Years), Grants	9 years 7 months 6 days
Weighted Average Remaining Contractual Life (Years), Stock options outstanding, ending balance	9 years 1 month 6 days

Stock Options - Schedule of Ass

Stock Options - Schedule of Assumptions Used for Stock-based Compensation (Details) - Including Non-Employee Option [Member]	9 Months Ended
	Sep. 30, 2018
Expected volatility	31.73%
Minimum [Member]
Expected dividend yield	4.00%
Risk-free interest rate	1.60%
Expected term (in years)	5 years 6 months
Maximum [Member]
Expected dividend yield	7.49%
Risk-free interest rate	2.85%
Expected term (in years)	9 years 22 days

Warrants (Details Narrative)

Warrants (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 03, 2018	Jun. 27, 2018	Jun. 07, 2018	Oct. 20, 2017
Number of shares eligible for warrants		25,000	100,000	80,000
Warrants exercise price		$ 8	$ 8	$ 15
Common stock warrants value		$ 25	$ 87	$ 124
Warrant One [Member]
Number of shares eligible for warrants	56,250
Warrants exercise price	$ 8
Common stock warrants value	$ 58
Warrant Two [Member]
Number of shares eligible for warrants	499,000
Warrants exercise price	$ 7.35
Common stock warrants value	$ 592
Warrant Three [Member]
Number of shares eligible for warrants	65,306
Warrants exercise price	$ 7.35
Common stock warrants value	$ 78

Warrants - Summary of Warrant A

Warrants - Summary of Warrant Activity (Details) - Warrant [Member]	9 Months Ended
	Sep. 30, 2018$ / sharesshares
Number of Shares, Warrants Outstanding, Beginning balance	80,000
Number of Shares, Warrants Grants	745,556
Number of Shares, Warrants Exercised
Number of Shares, Warrants Forfeited
Number of Shares, Warrants Expired
Number of Shares, Warrants Outstanding, Ending balance	825,556
Number of Shares, Warrants exercisable ending balance	825,556
Weighted Average Exercise Price, Warrants outstanding, Beginning balance | $ / shares	$ 15
Weighted Average Exercise Price, Warrants grants | $ / shares	7.51
Weighted Average Exercise Price, Warrants outstanding, Ending balance | $ / shares	$ 8.23
Weighted Average Remaining Contractual Life (Years), Warrants outstanding, Beginning balance	4 years 22 days
Weighted Average Remaining Contractual Life (Years), Warrants Grants	4 years 9 months
Weighted Average Remaining Contractual Life (Years), Warrants outstanding, Ending balance	4 years 8 months 5 days

Warrants - Schedule of Assumpti

Warrants - Schedule of Assumptions Used for Stock-based Compensation, Warrants (Details) - Warrant [Member]	9 Months Ended
	Sep. 30, 2018
Measurement Input, Expected Dividend Rate [Member] | Minimum [Member]
Fair value of assumptions, percentage	4.00%
Measurement Input, Expected Dividend Rate [Member] | Maximum [Member]
Fair value of assumptions, percentage	6.63%
Measurement Input, Price Volatility [Member]
Fair value of assumptions, percentage	31.73%
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member]
Fair value of assumptions, percentage	0.99%
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member]
Fair value of assumptions, percentage	1.91%
Measurement Input, Expected Term [Member]
Fair value of assumptions, expected term	5 years

Dividends on Common Stock (Deta

Dividends on Common Stock (Details Narrative) - Fog Cutter Capital Group Inc [Member] - USD ($)	Jul. 16, 2018	Jul. 16, 2018	Jun. 27, 2018	Apr. 16, 2018	Sep. 30, 2018	Sep. 30, 2018
Number of common stock share issued	157,765	157,765	989,395	153,600
Shares issued price per share	$ 6.085	$ 6.085	$ 7.35	$ 6.25
Dividend payable				$ 960,000
October 8, 2018 [Member]
Dividend declared per share					$ 0.12	$ 0.12
Dividend payable date						Oct. 31, 2018
Dividend payable record date						Oct. 18, 2018
July 16, 2018 [Member]
Shares issued price per share	$ 6.085	$ 6.085
Dividend payable	$ 960,000	$ 960,000
October 31, 2018 [Member]
Number of common stock share issued					176,877
Shares issued price per share					$ 6.31	$ 6.31
Dividend payable					$ 1,116,091	$ 1,116,091
Dividend reinvest on share					9,300,760

Dividends on Common Stock - Sch

Dividends on Common Stock - Schedule of Quarterly Dividends (Details)	9 Months Ended
	Sep. 30, 2018USD ($)$ / shares
Amount of dividend	$ 2,551,517
February 8, 2018 [Member]
Declaration date	Feb. 8, 2018
Record date	Mar. 30, 2018
Payment date	Apr. 16, 2018
Dividend per share | $ / shares	$ 0.12
Amount of dividend	$ 1,200,000
June 27, 2018 [Member]
Declaration date	Jun. 27, 2018
Record date	Jul. 6, 2018
Payment date	Jul. 16, 2018
Dividend per share | $ / shares	$ 0.12
Amount of dividend	$ 1,351,517

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	9 Months Ended
	Sep. 30, 2018ft²
Operating lease expiration date	Apr. 30, 2020
Beverly Hills, California [Member]
Square feet of space	5,478

Geographic Information and Ma_3

Geographic Information and Major Franchisees (Details Narrative)	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Geographic Information And Major Franchisees
Franchise revenue percentage description	No individual franchisee accounted for more than 10% of the Company's revenues	No individual franchisee accounted for more than 10% of the Company's revenues

Geographic Information and Ma_4

Geographic Information and Major Franchisees - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Total Revenue	$ 5,864	$ 13,357
United States [Member]
Total Revenue	4,155	9,798
Other Countries [Member]
Total Revenue	$ 1,709	$ 3,559

Operating Segments - Schedule o

Operating Segments - Schedule of Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Royalties, Revenues	$ 3,370	$ 8,802
Franchise fees, Revenues	1,343	2,041
Store opening fees, Revenues	100	205
Advertising fees, Revenue	1,038	2,264
Management fees, Revenues	13	45
Total revenues	5,864	13,357
General and administrative, Expenses	3,755	9,480
Income from operations	2,109	3,877
Other income (expense)	$ (352)	(355)
Income (loss) before income tax expense		5,454
Fatburger [Member]
Royalties, Revenues		3,948
Franchise fees, Revenues		1,884
Store opening fees, Revenues		205
Advertising fees, Revenue		879
Management fees, Revenues		45
Total revenues		6,961
General and administrative, Expenses		3,279
Income from operations		3,682
Other income (expense)		183
Income (loss) before income tax expense		3,865
Buffalo's [Member]
Royalties, Revenues		1,000
Franchise fees, Revenues		113
Store opening fees, Revenues
Advertising fees, Revenue		436
Management fees, Revenues
Total revenues		1,549
General and administrative, Expenses		1,053
Income from operations		496
Other income (expense)		444
Income (loss) before income tax expense		940
Ponderosa [Member]
Royalties, Revenues		3,029
Franchise fees, Revenues		28
Store opening fees, Revenues
Advertising fees, Revenue		469
Management fees, Revenues
Total revenues		3,526
General and administrative, Expenses		2,795
Income from operations		731
Other income (expense)		(78)
Income (loss) before income tax expense		653
Hurricane [Member]
Royalties, Revenues		825
Franchise fees, Revenues		16
Store opening fees, Revenues
Advertising fees, Revenue		480
Management fees, Revenues
Total revenues		1,321
General and administrative, Expenses		1,192
Income from operations		129
Other income (expense)		(133)
Income (loss) before income tax expense		$ (4)

Operating Segments - Schedule_2

Operating Segments - Schedule of Reconciliation to Consolidated Net Income (Details) - USD ($) $ in Thousands	Jan. 02, 2018	Sep. 30, 2018	Sep. 30, 2018
Segment Reporting [Abstract]
Combined segment net income before taxes			$ 5,454
Corporate general and administrative expenses			(1,161)
Corporate other expense, net			(2,906)
Income tax expense		$ (199)	(495)
Net income	$ 98	$ 10	$ 892

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Oct. 31, 2018	Oct. 08, 2018	Jul. 16, 2018	Jul. 16, 2018	Jun. 27, 2018	Apr. 16, 2018
Fog Cutter Capital Group Inc [Member]
Shares issued price per unit			$ 6.085	$ 6.085	$ 7.35	$ 6.25
Number of common stock share issued			157,765	157,765	989,395	153,600
Subsequent Event [Member]
Dividend declared per share		$ 0.12
Dividend payable date		Oct. 31, 2018
Dividend payable record date		Oct. 18, 2018
Subsequent Event [Member] | Fog Cutter Capital Group Inc [Member]
Dividend reinvest on share	9,300,760
Dividend amount reinvested in newly issued shares	$ 1,116,091
Shares issued price per unit	$ 6.31
Number of common stock share issued	176,877