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) |