Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 7-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | NOBLE ROMANS INC | |
Entity Central Index Key | 709005 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 20,481,760 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash | $193,332 | $200,349 |
Accounts receivable - net | 1,750,181 | 1,687,954 |
Inventories | 363,403 | 381,400 |
Prepaid expenses | 544,682 | 467,721 |
Deferred tax asset - current portion | 1,675,000 | 1,675,000 |
Total current assets | 4,526,598 | 4,412,424 |
Equipment | 1,388,549 | 1,383,380 |
Leasehold improvements | 88,718 | 88,718 |
Total | 1,477,267 | 1,472,098 |
Less accumulated depreciation and amortization | 1,059,898 | 1,041,951 |
Net property and equipment | 417,369 | 430,147 |
Deferred tax asset (net of current portion) | 7,662,004 | 7,899,497 |
Other assets including long-term portion of receivables-net | 5,102,760 | 5,015,931 |
Total assets | 17,708,731 | 17,757,999 |
Liabilities and Stockholders' Equity | ||
Current portion of long-term note payable to bank | 1,449,583 | 1,469,028 |
Accounts payable and accrued expenses | 601,889 | 676,386 |
Total current liabilities | 2,051,472 | 2,145,414 |
Note payable to bank - net of current portion | 1,484,340 | 1,846,736 |
Total long-term liabilities | 1,484,340 | 1,846,736 |
Stockholders' equity: | ||
Common stock - no par value (25,000,000 shares authorized, 20,095,087 issued and outstanding as of December 31, 2014 and 20,125,087 issued and outstanding as of March 31, 2015) | 23,997,630 | 23,970,654 |
Accumulated deficit | -9,824,711 | -10,204,805 |
Total stockholders' equity | 14,172,919 | 13,765,849 |
Total liabilities and stockholders' equity | $17,708,731 | $17,757,999 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Common stock, par value | $0 | $0 |
Common stock, authorized shares | 25,000,000 | 25,000,000 |
Common stock, issued shares | 20,125,087 | 20,095,087 |
Common stock, outstanding shares | 20,125,087 | 20,095,087 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
Royalties and fees | $1,772,571 | $1,814,066 |
Administrative fees and other | 11,749 | 20,686 |
Restaurant revenue | 83,347 | 76,952 |
Total revenue | 1,867,667 | 1,911,704 |
Operating expenses: | ||
Salaries and wages | 279,518 | 259,894 |
Trade show expense | 126,115 | 126,261 |
Travel expense | 56,146 | 47,118 |
Other operating expenses | 207,627 | 188,586 |
Restaurant expenses | 106,127 | 91,428 |
Depreciation and amortization | 26,354 | 27,821 |
General and administrative | 402,158 | 394,007 |
Total expenses | 1,204,045 | 1,135,115 |
Operating income | 663,622 | 776,589 |
Interest and other expense | 46,035 | 50,053 |
Income before income taxes | 617,587 | 726,536 |
Income tax expense | 237,493 | 287,781 |
Net income | $380,094 | $438,755 |
Earnings per share - basic: | ||
Net income | $0.02 | $0.02 |
Weighted average number of common shares outstanding | 20,098,087 | 19,771,765 |
Diluted earnings per share: | ||
Net income | $0.02 | $0.02 |
Weighted average number of common shares outstanding | 21,877,128 | 21,253,507 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (USD $) | Common Stock | Accumulated Deficit | Total |
Beginning Balance, Amount at Dec. 31, 2014 | $23,970,654 | ($10,204,805) | $13,765,849 |
Beginning Balance, Shares at Dec. 31, 2014 | 20,095,087 | ||
Net income | 380,094 | 380,094 | |
Exercise of employee stock options, Amount | 10,800 | 10,800 | |
Exercise of employee stock options, Shares | 30,000 | ||
Ending Balance, Amount at Mar. 31, 2015 | $23,997,630 | ($9,824,711) | $14,172,919 |
Ending Balance, Shares at Mar. 31, 2015 | 20,125,087 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
OPERATING ACTIVITIES | ||
Net income | $380,094 | $438,755 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 34,122 | 28,993 |
Deferred income taxes | 237,493 | 287,781 |
(Increase) decrease in: | ||
Accounts receivable | -62,228 | -84,065 |
Inventories | 17,997 | 6,471 |
Prepaid expenses | -76,960 | -41,076 |
Other assets | -86,829 | -12,232 |
Increase (decrease) in: | ||
Accounts payable and accrued expenses | -7,242 | 400 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 436,447 | 625,027 |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | -5,169 | -2,975 |
NET CASH USED IN INVESTING ACTIVITIES | -5,169 | -2,975 |
FINANCING ACTIVITIES | ||
Payment of principal on outstanding debt | -381,840 | -304,063 |
Proceeds from the exercise of employee stock options | 10,800 | 830 |
NET CASH USED IN FINANCING ACTIVITIES | -371,040 | -303,233 |
DISCONTINUED OPERATIONS | ||
Payment of obligations from discontinued operations | -67,255 | -76,115 |
Increase (decrease) in cash | -7,017 | 242,704 |
Cash at beginning of period | 200,349 | 157,787 |
Cash at end of period | $193,332 | $400,491 |
1_Basis_of_Presentation
1. Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
1. Basis of Presentation | Note 1 - The accompanying unaudited interim condensed consolidated financial statements, included herein, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated statements have been prepared in accordance with the Company’s accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and should be read in conjunction with the audited consolidated financial statements and the notes thereto included in that report. Unless the context indicates otherwise, references to the “Company” mean Noble Roman’s, Inc. and its subsidiaries. |
In the opinion of the management of the Company, the information contained herein reflects all adjustments necessary for a fair presentation of the results of operations and cash flows for the interim periods presented and the financial condition as of the dates indicated, which adjustments are of a normal recurring nature. The results for the three-month period ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year ending December 31, 2015. |
2_Royalties_and_Fees
2. Royalties and Fees | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
2. Royalties and Fees | Note 2 – Royalties and fees included $38,000 and $37,000 for the three-month periods ended March 31, 2014 and 2015, respectively, of initial franchise fees. Royalties and fees included $11,926 and $29,054 for the three-month periods ended March 31, 2014 and 2015, respectively, of equipment commissions. Royalties and fees, less initial franchise fees and equipment commissions were $1,764,140 and $1,706,517 for the three-month periods ended March 31, 2014 and 2015, respectively. Most of the cost for the services required to be performed by the Company are incurred prior to the franchise fee income being recorded, which is based on a contractual liability for the franchisee. For the most part, the Company’s royalty income is paid by the Company initiating a draft on the franchisee’s account by electronic withdrawal. |
There were 2,215 franchises/licenses in operation on December 31, 2014 and 2,246 franchises/licenses in operation on March 31, 2015. During the three-month period ended March 31, 2015, there were 45 new outlets opened and 14 outlets closed. In the ordinary course, grocery stores from time to time add our licensed products, remove them and subsequently re-offer them. Therefore, it is unknown how many licensed grocery store units have left the system. |
3_Earnings_per_Share
3. Earnings per Share | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Notes to Financial Statements | |||||||||||||
3. Earnings per Share | Note 3 - The following table sets forth the calculation of basic and diluted earnings per share for the three-month period ended March 31, 2014: | ||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||
Income | Shares | Per-Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
Net income | $ | 438,755 | 19,771,765 | $ | 0.02 | ||||||||
Effect of dilutive securities | |||||||||||||
Options | 1,481,742 | ||||||||||||
Diluted earnings per share | |||||||||||||
Net income per share with assumed conversions | $ | 438,755 | 21,253,507 | $ | 0.02 | ||||||||
The following table sets forth the calculation of basic and diluted earnings per share for the three-month period ended March 31, 2015: | |||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Income | Shares | Per-Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
Net income | $ | 380,094 | 20,098,087 | $ | 0.02 | ||||||||
Effect of dilutive securities | |||||||||||||
Options | 1,779,041 | ||||||||||||
Diluted earnings per share | |||||||||||||
Net income per share with assumed conversions | $ | 380,094 | 21,877,128 | $ | 0.02 | ||||||||
3_Earnings_per_Share_Tables
3. Earnings per Share (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Earnings Per Share Tables | |||||||||||||
Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per share for the three-month period ended March 31, 2014: | ||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||
Income | Shares | Per-Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
Net income | $ | 438,755 | 19,771,765 | $ | 0.02 | ||||||||
Effect of dilutive securities | |||||||||||||
Options | 1,481,742 | ||||||||||||
Diluted earnings per share | |||||||||||||
Net income per share with assumed conversions | $ | 438,755 | 21,253,507 | $ | 0.02 | ||||||||
The following table sets forth the calculation of basic and diluted earnings per share for the three-month period ended March 31, 2015: | |||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Income | Shares | Per-Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
Net income | $ | 380,094 | 20,098,087 | $ | 0.02 | ||||||||
Effect of dilutive securities | |||||||||||||
Options | 1,779,041 | ||||||||||||
Diluted earnings per share | |||||||||||||
Net income per share with assumed conversions | $ | 380,094 | 21,877,128 | $ | 0.02 | ||||||||
2_Royalties_and_Fees_Details_N
2. Royalties and Fees (Details Narrative) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Integer | Integer | ||
Royalties and Fees | $1,706,517 | $1,764,140 | |
Number of Franchisee | 2,246 | 2,215 | |
Outlets opened | 45 | ||
Outlets closed | 14 | ||
Initial Franchisee Fees | |||
Royalties and Fees | 37,000 | 38,000 | |
Equipment Commission | |||
Royalties and Fees | $29,054 | $11,926 |
3_Earnings_Per_Share_Details
3. Earnings Per Share (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income (Numerator) | ||
Net income | $380,094 | $438,755 |
Dilutive earnings per share: Income available to common stockholders and assumed conversions | $380,094 | $438,755 |
Shares (Denominator) | ||
Shares, basic | 20,098,087 | 19,771,765 |
Dilutive earnings per share: Income available to common stockholders and assumed conversions | 21,877,128 | 21,253,507 |
Per-Share (Amount) | ||
Earnings per share | $0.02 | $0.02 |
Diluted earnings per share Income available to common stockholders and assumed conversions | $0.02 | $0.02 |
Options | ||
Shares (Denominator) | ||
Effect of dilutive securities | 1,779,041 | 1,481,742 |