RAVE Restaurant (RAVE) 10-Q 8 Nov 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 24, 2017	Nov. 06, 2017
Document And Entity Information
Entity Registrant Name	RAVE RESTAURANT GROUP, INC.
Entity Central Index Key	718,332
Document Type	10-Q
Document Period End Date	Sep. 24, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-24
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		14,282,558
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 24, 2017	Sep. 25, 2016
Income Statement [Abstract]
REVENUES:	$ 13,157	$ 15,264
COSTS AND EXPENSES:
Cost of sales	10,840	13,656
General and administrative expenses	1,291	1,877
Franchise expenses	913	852
Pre-opening expenses	115	19
Loss on sale of assets	2	43
Impairment of long-lived assets and other lease charges	148	169
Bad debt	124	53
Interest expense	68	0
Total costs and expenses	13,501	16,669
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES	(344)	(1,405)
Income tax expense	12	5
LOSS FROM CONTINUING OPERATIONS	(356)	(1,410)
Loss from discontinued operations, net of taxes	0	(86)
NET LOSS	$ (356)	$ (1,496)
LOSS PER SHARE OF COMMON STOCK - BASIC:
Loss from continuing operations	$ (0.03)	$ (0.14)
Loss from discontinued operations	0	0
Net loss	(0.03)	(0.14)
LOSS PER SHARE OF COMMON STOCK - DILUTED:
Loss from continuing operations	(0.03)	(0.14)
Loss from discontinued operations	0	0
Net loss	$ (0.03)	$ (0.14)
Weighted average common shares outstanding - basic	11,159	10,469
potential dilutive common shares outstanding	11,159	10,469

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 24, 2017	Jun. 25, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 3,976	$ 451
Accounts receivable, less allowance for bad debts accounts of $243 and $249, respectively	2,560	2,761
Notes receivable	350	675
Inventories	91	79
Income tax receivable	194	194
Property held for sale	631	671
Prepaid expenses and other	496	295
Total current assets	8,298	5,126
LONG-TERM ASSETS
Property, plant and equipment, net	4,069	3,808
Intangible assets definite-lived, net	235	238
Long-term notes receivable	0	127
Deposits and other, net	243	247
Total assets	12,845	9,546
CURRENT LIABILITIES
Accounts payable - trade	3,570	4,165
Short-term debt	1,000	1,000
Accrued expenses	1,099	1,265
Deferred rent	83	101
Deferred revenues	253	212
Total current liabilities	6,005	6,743
LONG-TERM LIABILITIES
Convertible notes	2,675	2,749
Deferred rent, net of current portion	656	655
Deferred revenues, net of current portion	850	1,425
Other long-term liabilities	56	53
Total liabilities	10,242	11,625
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 21,401,958 and 17,786,049 shares, respectively; outstanding 14,282,558 and 10,666,649 shares, respectively	214	178
Additional paid-in capital	31,786	26,784
Accumulated deficit	(4,761)	(4,405)
Treasury stock at cost shares in treasury: 7,119,400	(24,636)	(24,636)
Total shareholders' equity (deficit)	2,603	(2,079)
Total liabilities and shareholders' equity	$ 12,845	$ 9,546

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 24, 2017	Jun. 25, 2017
Statement of Financial Position [Abstract]
Allowance for bad debts accounts	$ 243	$ 249
Common Stock, Par Value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	26,000,000	26,000,000
Common Stock, Shares Issued	21,401,958	17,786,049
Common Stock, Shares Outstanding	14,282,558	10,666,649
Treasury Stock, shares	7,119,400	7,119,400

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 24, 2017	Sep. 25, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (356)	$ (1,496)
Depreciation and amortization	314	790
Amortization of intangible assets definite-lived	10	46
Amortization of debt issue costs	11	0
Impairment of long-lived assets	148	0
Stock compensation expense	10	45
Loss on sale/disposal of assets	2	43
Provision for bad debt	124	53
Changes in operating assets and liabilities:
Notes and accounts receivable	529	66
Inventories	(12)	5
Accounts payable - trade	(907)	(577)
Accrued expenses	(166)	(182)
Deferred rent	(17)	(154)
Deferred revenue	(534)	(11)
Prepaid expenses and other	(194)	(50)
Cash used in operating activities	(1,048)	(1,468)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets	0	5
Purchase of intangible assets definite-lived	(7)	0
Capital expenditures	(363)	(162)
Cash used in investing activities	(370)	(157)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock	4,943	0
Proceeds from stock options	0	806
Cash provided by financing activities	4,943	806
Net increase (decrease) in cash and cash equivalents	3,525	(819)
Cash and cash equivalents, beginning of period	451	873
Cash and cash equivalents, end of period	3,976	54
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	0	0
Income taxes paid	0	25
Non-cash activities:
Capital expenditures included in accounts payable	$ 164	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 24, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(1) Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All appropriate intercompany balances and transactions have been eliminated. Cash and Cash Equivalents Fiscal Quarters The three month periods ended September 24, 2017 and September 25, 2016, each contained 13 weeks. Revenue Recognition The Company recognizes revenue when products are delivered and the customer takes ownership and assumes risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. The Company's Norco division sells food and supplies to franchisees on trade accounts under terms common in the industry. Food and supply sales revenues, including shipping and handling costs, are recognized upon delivery of the product. Revenue from restaurant sales is recognized when food and beverage products are sold. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities. Franchise revenue consists of income from license fees, royalties, and area development and foreign master license fees. License fees are recognized as income when there has been substantial performance under the agreement by the Company. Domestic license fees are generally recognized at the time the restaurant is opened. Foreign master license fees are generally recognized upon execution of the agreement as all material services relating to the sale have been substantially performed by the Company and the fee has been collected. Royalties are recognized as income when earned. Stock-Based Compensation The Company accounts for stock options using the fair value recognition provisions of the authoritative guidance on share-based payments. The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow. Restricted Stock Units Compensation cost is measured as an amount equal to the fair value of the restricted stock units on the date of grant and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on the best estimate of the ultimate achievement level. Use of Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically and actual results could differ materially from estimates. Reclassification Certain items have been reclassified in the prior year financial statements to conform to current year presentation.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 24, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(2) Commitments and Contingencies On April 22, 2009 the Company’s board of directors amended the 2007 Stock Purchase Plan first adopted on May 23, 2007 and previously amended on June 2, 2008, to increase the number of shares of common stock the Company may repurchase shares to a total of 3,016,000 shares. The 2007 Stock Purchase Plan does not have an expiration date. There were no stock repurchases in the first quarter of fiscal 2017. As of September 24, 2017, up to an additional 848,425 shares could be repurchased under the 2007 Stock Purchase Plan. The Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company's annual results of operations or financial condition if decided in a manner that is unfavorable to the Company.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Sep. 24, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	(3) Stock-Based Compensation Stock Options: For the three months ended September 24, 2017, and September 25, 2016, the Company recognized stock-based compensation expense related to stock options of $10 thousand and $25 thousand, respectively. As of September 24, 2017, unamortized stock-based compensation expense related to stock options was $26 thousand. The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options: <BTB> Three Months Ended < September 24, 2017 September 25, 2016 Outstanding at beginning of year 478,056 847,556 Granted — 50,000 Exercised — (315,000 ) Forfeited/Canceled/Expired — (80,000 ) Outstanding at end of period 478,056 502,556 Exercisable at end of period 438,056 365,406 Restricted Stock Units: For the three months ended September 24, 2017, and September 25, 2016, the Company recognized $0 and $20 thousand in stock-based compensation expense related to restricted stock units. As of September 24, 2017, unamortized stock-based compensation expense related to restricted stock units was $0. During fiscal 2017, the Company determined that the probability of achieving the minimum performance criteria was remote. A summary of the status of restricted stock units as of September 24, 2017, and changes during the fiscal quarter then ended is presented below: Number of Restricted Stock Units Unvested at June 25, 2017 487,950 Granted — Vested — Forfeited (20,620 ) Unvested at September 24, 2017 467,330

Earnings per Share (EPS)

Earnings per Share (EPS)	3 Months Ended
	Sep. 24, 2017
Earnings Per Share [Abstract]
Earnings per Share (EPS)	(4) Earnings per Share (EPS) The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts). Three Months Ended September 24, September 25, 2017 2016 Loss from continuing operations $ (356 ) $ (1,410 ) Income (loss) from discontinued operations — (86 ) Net loss available to common stockholders $ (356 ) $ (1,496 ) BASIC: Weighted average common shares 11,159 10,469 Loss from continuing operations per common share $ (0.03 ) $ (0.14 ) Income (loss) from discontinued operations per common share — — Net loss per common share $ (0.03 ) $ (0.14 ) DILUTED: Weighted average common shares 11,159 10,469 Stock options — — Weighted average common shares outstanding 11,159 10,469 Loss from continuing operations per common share $ (0.03 ) $ (0.14 ) Income (loss) from discontinued operations per common share — — Net loss per common share $ (0.03 ) $ (0.14 ) For the three months ended September 24, 2017, options to purchase 478,056 shares of common stock at an exercise prices ranging from $1.87 to $13.11 were excluded from the computation of diluted EPS because their inclusion would have been anti-dilutive.

Closed restaurants and disconti

Closed restaurants and discontinued operations	3 Months Ended
	Sep. 24, 2017
Discontinued Operations and Disposal Groups [Abstract]
Closed restaurants and discontinued operations	(5) Closed restaurants and discontinued operations In April, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which modifies the definition of discontinued operations to include only disposals of an entity that represent strategic shifts that have or will have a major effect on an entity’s operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. The standard was effective prospectively for annual and interim periods beginning after December 15, 2014, with early adoption permitted. This pronouncement did not have a material impact on our condensed consolidated financial statements The authoritative guidance on “Accounting for the Impairment or Disposal of Long-Lived Assets,” requires that discontinued operations that meet certain criteria be reflected in the statement of operations after results of continuing operations as a net amount. This guidance also requires that the operations of closed restaurants, including any impairment charges, be reclassified to discontinued operations for all periods presented. The authoritative guidance on “Accounting for Costs Associated with Exit or Disposal Activities,” requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred. This authoritative guidance also establishes that fair value is the objective for initial measurement of the liability. Discontinued operations include losses from leased buildings associated with Company-owned restaurants closed in prior years and closed Pizza Inn corporate-owned stores.

Income Taxes

Income Taxes	3 Months Ended
	Sep. 24, 2017
Income Tax Disclosure [Abstract]
Income Taxes	(6) Income Taxes For the three months ended September 24, 2017, income tax expense represents an income tax benefit of $117 thousand calculated at a rate consistent with the 34% statutory U.S. federal rate offset by an income tax expense of $129 thousand related to recording a valuation allowance for deferred tax assets of $117 thousand, foreign taxes of $6 thousand and state taxes of $6 thousand. For the three months ended September 25, 2016, income tax expense was $5 thousand. The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. The Company continues to record a full valuation allowance against its net deferred tax assets. The Company assessed whether a valuation allowance should be established against its deferred tax assets based on consideration of all available evidence, using a “more likely than not” standard. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Future sources of taxable income were also considered in determining the amount of the recorded valuation allowance. Based on the Company’s review of this evidence at September 24, 2017, management determined that a valuation allowance against all of the Company’s deferred tax assets accruing during the first quarter of fiscal 2018 was appropriate. There was approximately $9.2 million of deferred tax assets at September 24, 2017.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Sep. 24, 2017
Related Party Transactions [Abstract]
Related Party Transactions	(7) Related Party Transactions On February 20, 2014, the Company entered into an Advisory Services Agreement (the “Agreement”) with NCM Services, Inc. (“NCMS”) pursuant to which NCMS will provide certain advisory and consulting services to the Company. NCMS is indirectly owned and controlled by Mark E. Schwarz, the Chairman of the Company. The term of the Agreement commenced December 30, 2013, and continued quarterly thereafter until terminated by either party. Pursuant to the Agreement, NCMS was paid an initial fee of $150,000 and earns quarterly fees of $50,000 and an additional fee of up to $50,000 per quarter (not to exceed an aggregate of $100,000 in additional fees). The quarterly and additional fees were waived if the Company was not in compliance with all financial covenants under its primary credit facility or to the extent that payment of those fees would result in non-compliance with such financial covenants. The Agreement was terminated at the end of fiscal 2017.

Segment Reporting

Segment Reporting	3 Months Ended
	Sep. 24, 2017
Segment Reporting [Abstract]
Segment Reporting	(8) Segment Reporting Summarized in the following tables are net sales and operating revenues, operating income and geographic information (revenues) for the Company’s reportable segments for the three month periods ended September 24, 2017 and September 25, 2016 (in thousands). Operating income reported below excludes income tax provision and discontinued operations. Three Months Ended September 24, September 25, 2017 2016 Net sales and operating revenues: Franchising and food and supply distribution $ 10,982 $ 10,557 Company-owned restaurants 2,175 4,707 Consolidated revenues $ 13,157 $ 15,264 Depreciation and amortization: Franchising and food and supply distribution $ 1 $ 6 Company-owned restaurants 200 687 Combined 201 693 Corporate administration and other 113 97 Depreciation and amortization $ 314 $ 790 Income (loss) from continuing operations before taxes: Franchising and food and supply distribution (1) $ 1,153 $ 875 Company-owned restaurants (1) (689 ) (1,505 ) Combined 464 (630 ) Impairment of long-lived assets and other lease charges (148 ) — Corporate administration and other (1) (660 ) (775 ) Loss from continuing operations before taxes $ (344 ) $ (1,405 ) Geographic information (revenues): United States $ 12,981 $ 15,069 Foreign countries 176 195 Consolidated total $ 13,157 $ 15,264 (1) Portions of corporate administration and other have been allocated to segments

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 24, 2017
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All appropriate intercompany balances and transactions have been eliminated.
Cash and Cash Equivalents	Cash and Cash Equivalents
Fiscal Quarters	Fiscal Quarters The three month periods ended September 24, 2017 and September 25, 2016, each contained 13 weeks.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when products are delivered and the customer takes ownership and assumes risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. The Company's Norco division sells food and supplies to franchisees on trade accounts under terms common in the industry. Food and supply sales revenues, including shipping and handling costs, are recognized upon delivery of the product. Revenue from restaurant sales is recognized when food and beverage products are sold. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities. Franchise revenue consists of income from license fees, royalties, and area development and foreign master license fees. License fees are recognized as income when there has been substantial performance under the agreement by the Company. Domestic license fees are generally recognized at the time the restaurant is opened. Foreign master license fees are generally recognized upon execution of the agreement as all material services relating to the sale have been substantially performed by the Company and the fee has been collected. Royalties are recognized as income when earned.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock options using the fair value recognition provisions of the authoritative guidance on share-based payments. The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow.
Restricted Stock Units	Restricted Stock Units Compensation cost is measured as an amount equal to the fair value of the restricted stock units on the date of grant and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on the best estimate of the ultimate achievement level.
Use of Management Estimates	Use of Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically and actual results could differ materially from estimates.
Reclassification	Reclassification Certain items have been reclassified in the prior year financial statements to conform to current year presentation.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 24, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Summary of Outstanding Stock Options	The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options: <BTB> Three Months Ended < September 24, 2017 September 25, 2016 Outstanding at beginning of year 478,056 847,556 Granted — 50,000 Exercised — (315,000 ) Forfeited/Canceled/Expired — (80,000 ) Outstanding at end of period 478,056 502,556 Exercisable at end of period 438,056 365,406
Schedule of Summary of Restricted Stock Units	A summary of the status of restricted stock units as of September 24, 2017, and changes during the fiscal quarter then ended is presented below: Number of Restricted Stock Units Unvested at June 25, 2017 487,950 Granted — Vested — Forfeited (20,620 ) Unvested at September 24, 2017 467,330

Earnings per Share (EPS) (Table

Earnings per Share (EPS) (Tables)	3 Months Ended
	Sep. 24, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts). Three Months Ended September 24, September 25, 2017 2016 Loss from continuing operations $ (356 ) $ (1,410 ) Income (loss) from discontinued operations — (86 ) Net loss available to common stockholders $ (356 ) $ (1,496 ) BASIC: Weighted average common shares 11,159 10,469 Loss from continuing operations per common share $ (0.03 ) $ (0.14 ) Income (loss) from discontinued operations per common share — — Net loss per common share $ (0.03 ) $ (0.14 ) DILUTED: Weighted average common shares 11,159 10,469 Stock options — — Weighted average common shares outstanding 11,159 10,469 Loss from continuing operations per common share $ (0.03 ) $ (0.14 ) Income (loss) from discontinued operations per common share — — Net loss per common share $ (0.03 ) $ (0.14 )

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Sep. 24, 2017
Segment Reporting [Abstract]
Segment Reporting Detail	Three Months Ended September 24, September 25, 2017 2016 Net sales and operating revenues: Franchising and food and supply distribution $ 10,982 $ 10,557 Company-owned restaurants 2,175 4,707 Consolidated revenues $ 13,157 $ 15,264 Depreciation and amortization: Franchising and food and supply distribution $ 1 $ 6 Company-owned restaurants 200 687 Combined 201 693 Corporate administration and other 113 97 Depreciation and amortization $ 314 $ 790 Income (loss) from continuing operations before taxes: Franchising and food and supply distribution (1) $ 1,153 $ 875 Company-owned restaurants (1) (689 ) (1,505 ) Combined 464 (630 ) Impairment of long-lived assets and other lease charges (148 ) — Corporate administration and other (1) (660 ) (775 ) Loss from continuing operations before taxes $ (344 ) $ (1,405 ) Geographic information (revenues): United States $ 12,981 $ 15,069 Foreign countries 176 195 Consolidated total $ 13,157 $ 15,264 (1) Portions of corporate administration and other have been allocated to segments

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - shares	Sep. 24, 2017	Jun. 02, 2008
Commitments and Contingencies Disclosure [Abstract]
Common stock shares may be repurchased		3,016,000
Additional shares that can be repurchased under the 2007 Stock Purchase Plan	848,425

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Summary of Outstanding Stock Options (Details) - shares	3 Months Ended
	Sep. 24, 2017	Sep. 25, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding at beginning of year	478,056	847,556
Granted	0	50,000
Exercised	0	(315,000)
Forfeited/Canceled/Expired	0	(80,000)
Outstanding at end of period	478,056	502,556
Exercisable at end of period	438,056	365,406

Stock-Based Compensation - Sc20

Stock-Based Compensation - Schedule of Summary of Restricted Stock Units (Details)	Sep. 24, 2017shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unvested at June 25, 2017	487,950
Granted	0
Vested	0
Forfeited	(20,620)
Unvested at September 24, 2017	467,330

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Sep. 24, 2017	Sep. 25, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation recognized	$ 10	$ 25
Unamortizied stock-based compensation expense	26
StockBasedCompensationExpenseRelatedToRestrictedStockUnits	0	$ 20
Unamortized stock-based compensation expense related to stock units	$ 0

Earnings per Share (EPS) - Sche

Earnings per Share (EPS) - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 24, 2017	Sep. 25, 2016
Earnings Per Share [Abstract]
Loss from continuing operations	$ (356)	$ (1,410)
Income (loss) from discontinued operations	0	(86)
Net loss available to common stockholders	$ (356)	$ (1,496)
BASIC:
Weighted average common shares	11,159	10,469
Loss from continuing operations per common share	$ (0.03)	$ (0.14)
Income (loss) from discontinued operations per common share	0	0
Net loss per common share	$ (0.03)	$ (0.14)
DILUTED:
Weighted average common shares	11,159	10,469
Stock options	$ 0	$ 0
Weighted average common shares outstanding	11,159	10,469
Loss from continuing operations per common share	$ (0.03)	$ (0.14)
Income (loss) from discontinued operations per common share	0	0
Net loss per common share	$ (0.03)	$ (0.14)

Earnings per Share (EPS) (Detai

Earnings per Share (EPS) (Details Narrative)	3 Months Ended
	Sep. 24, 2017shares
Earnings Per Share [Abstract]
Options to purchase shares of common stock excluded from computation of diluted shares	478,056
Common Stock exercise price excluded	common stock at an exercise prices ranging from $1.87 to $13.11 were excluded from the computation of diluted EPS

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended
	Sep. 24, 2017	Sep. 25, 2016
Income Tax Disclosure [Abstract]
Income tax benefit	$ 117,000
Statutory U.S federal rate	34.00%
Income tax expense	$ 129,000
Valuation allowance for deferred tax assets	117,000
Foreign Taxes	6,000
State taxes	6,000
Income tax expense	12,000	$ 5,000
Deferred tax assets	$ 9,200,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative)	Dec. 30, 2013USD ($)
Related Party Transactions [Abstract]
NCMS was paid an initial fee	$ 150,000
Earns quarterly fees	50,000
Additional fee per quarter	50,000
Aggregate amount not to be exceeded in additional fees	$ 100,000

SEGMENT REPORTING (Details - Ge

SEGMENT REPORTING (Details - Geographic information revenues) - USD ($) $ in Thousands	3 Months Ended
	Sep. 24, 2017	Sep. 25, 2016
Revenues	$ 13,157	$ 15,264
Foreign countries
Revenues	176	195
UNITED STATES
Revenues	$ 12,981	$ 15,069

SEGMENT REPORTING (Details - Se

SEGMENT REPORTING (Details - Segment reporting) - USD ($) $ in Thousands	3 Months Ended
	Sep. 24, 2017	Sep. 25, 2016
Net sales and operating revenues	$ 13,157	$ 15,264
Depreciation and amortization	314	790
Impairment of long-lived assets and other lease charges	(148)	(169)
Income (Loss) from continuing operations before taxes	(344)	(1,405)
Corporate administration and other
Depreciation and amortization	113	97
Income (Loss) from continuing operations before taxes	(660)	(775)
Franchising and food and supply distribution
Net sales and operating revenues	10,982	10,557
Depreciation and amortization	1	6
Income (Loss) from continuing operations before taxes	1,153	875
Company-owned restaurants (1)
Net sales and operating revenues	2,175	4,707
Depreciation and amortization	200	687
Income (Loss) from continuing operations before taxes	(689)	(1,505)
Combined
Depreciation and amortization	201	693
Income (Loss) from continuing operations before taxes	$ 464	$ (630)