RAVE Restaurant (RAVE) 10-Q/A 7 Nov 18 2018 Q1 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 23, 2018	Nov. 02, 2018
Document And Entity Information
Entity Registrant Name	RAVE RESTAURANT GROUP, INC.
Entity Central Index Key	718,332
Document Type	10-Q/A
Document Period End Date	Sep. 23, 2018
Amendment Flag	true
Amendment Description	Filing to add XBRL
Current Fiscal Year End Date	--09-23
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		15,071,311
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Sep. 23, 2018	Sep. 24, 2017
Income Statement [Abstract]
REVENUES	$ 2,991,000	$ 5,433,000
COSTS AND EXPENSES:
Cost of sales	159,000	2,086,000
General and administrative expenses	1,414,000	2,055,000
Franchise expenses	1,061,000	640,000
Pre-opening expenses		115,000
Loss/(Gain) on sale of assets	(4,000)	2,000
Impairment of long-lived assets and other lease charges	15,000	148,000
Bad debt	24,000	124,000
Interest expense	25,000	68,000
Depreciation and amortization expense	139,000	314,000
Total costs and expenses	2,833,000	5,552,000
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES	158,000	(119,000)
Income tax expense	50,000	12,000
INCOME/(LOSS) FROM CONTINUING OPERATIONS	108,000	(131,000)
Loss from discontinued operations		(225,000)
NET INCOME/(LOSS)	$ 108,000	$ (356,000)
INCOME/(LOSS) PER SHARE OF COMMON STOCK - BASIC:
Income/(Loss) from continuing operations	$ .01	$ .01
Loss from discontinued operations		(0.02)
Net Income/(Loss)	.01	(0.03)
INCOME/(LOSS) PER SHARE OF COMMON STOCK - DILUTED:
Income/(Loss) from continuing operations	.01	.01
Loss from discontinued operations		(0.02)
Net Income/(Loss)	$ 0.01	$ (0.03)
Weighted average common shares outstanding - basic	15,064	11,159
Weighted average common and potential dilutive common shares outstanding	15,897	11,159

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 23, 2018	Jun. 24, 2018	Sep. 24, 2017	Jun. 23, 2017
CURRENT ASSETS
Cash and Cash Equivalents	$ 2,006,000	$ 1,386,000	$ 3,976,000	$ 451,000
Accounts receivable, less allowance for bad debts accounts of $179 and $158, respectively	1,357,000	1,518,000
Other receivable	939,000	300,000
Notes receivable	939,000	712,000
Inventories	6,000	6,000
Income tax receivable	4,000	5,000
Property held for sale	467,000	539,000
Deferred contract charges	15,000
Prepaid expenses and other	351,000	273,000
Total current assets	5,145,000	4,739,000
LONG-TERM ASSETS
Property, plant and equipment, net	1,391,000	1,510,000
Intangible assets definite-lived, net	202,000	212,000
Long-term notes receivable	791,000	803,000
Deferred tax asset, net	3,462,000	3,479,000
Long term deferred contract charges	221,000
Deposits and other	243,000	243,000
Total assets	11,455,000	10,986,000
CURRENT LIABILITIES
Accounts payable - trade	797,000	774,000
Accrued expenses	836,000	1,109,000
Deferred rent	34,000	32,000
Deferred revenues	428,000	65,000
Total current liabilities	2,095,000	1,980,000
LONG-TERM LIABILITIES
Convertible notes	1,567,000	1,562,000
Deferred rent, net of current portion	424,000	433,000
Deferred revenues, net of current portion	2,399,000	670,000
Other long-term liabilities	48,000	42,000
Total liabilities	6,533,000	4,687,000
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,190,515 and 22,166,674 shares, respectively; outstanding 15,071,311 and 15,047,470 shares, respectively	222,000	222,000
Additional paid-in capital	33,343,000	33,206,000
Accumulated deficit	(4,007,000)	(2,493,000)
Treasury stock at cost Shares in treasury: 7,119,204	(24,636,000)	(24,636,000)
Total shareholders' equity	4,922,000	6,299,000
Total liabilities and shareholders' equity	$ 11,455,000	$ 10,986,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 23, 2018	Jun. 24, 2018
Statement of Financial Position [Abstract]
Allowance for bad debts accounts, accounts receivable	$ 179	$ 158
Common Stock, Par Value	$ .01	$ .01
Common Stock, Shares Authorized	26,000,000	26,000,000
Common Stock, Shares Issued	22,190,515	22,166,674
Common Stock, Shares Outstanding	15,071,311	15,047,470
Treasury Stock, shares	7,119,204	7,119,204

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 23, 2018	Sep. 24, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income/(Loss)	$ 108	$ (356)
Adjustments to reconcile net income/(loss) to cash provided by/(used in) operating activties:
Impairment of fixed assets and other assets		148
Stock compensation expense	101	10
Depreciation and amortization	129	304
Amortization of intangible assets definite-lived	10	10
Amortization of debt issue costs	5	11
Gain/(Loss) on sale of assets	(4)	2
Provision for bad debt	24	124
Changes in operating assets and liabilities:
Accounts receivable	296	529
Inventories		(12)
Prepaid expenses, deposits and other, net	(79)	(194)
Deferred revenue	234	(534)
Accounts payable - trade	23	(907)
Deferred tax assets	17
Accrued expenses, deferred rent and other	(274)	(183)
Cash provided by (used in) operating activities	590	(1,048)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets	4
Purchase of intangible assets definite-lived		(7)
Capital expenditures	(10)	(363)
Cash used in investing activities	(6)	(370)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of stock	36	4,943
Cash provided by financing activities	36	4,943
Net increase in cash and cash equivalents	620	3,525
Cash and cash equivalents, beginning of period	1,386	451
Cash and cash equivalents, end of period	2,006	3,976
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest	2
Income taxes	4
Non-cash activities:
Capital expenditures included in accounts payable		164
Conversion of notes to equity

Shareholders Equity

Shareholders Equity - 3 months ended Sep. 23, 2018 - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings / Accumulated Deficit	Treasury Stock	Total
Beginning balance, shares at Jun. 24, 2018	15,047			(7,119)
Beginning balance, value at Jun. 24, 2018	$ 222	$ 33,206	$ (2,493)	$ (24,636)	$ 6,299
ASC 606 Cumulative Adjustment			(1,622)		(1,622)
Stock compensation expense		101			101
Conversion of senior notes, net, value
Issuance of common stock	24	36			36
Net lncome			$ 108		$ 108
Ending balance, shares at Sep. 23, 2018	15,071			(7,119)
Ending balance, value at Sep. 23, 2018	$ 222	$ 33,343	$ (4,007)	$ (24,636)	$ 4,922

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	3 Months Ended
	Sep. 23, 2018
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 23, 2018 and September 24, 2017 each contained 13 weeks. 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. Revenue Recognition Revenue is measured based on consideration specified in contracts with customers and excludes incentives and amounts collected on behalf of third parties, primarily sales tax. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. As further described in Accounting Standards Adopted, Adoption of ASU 2014-09, “Revenue from Contracts with Customers,” revenue recognition in fiscal 2019 follows ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” and ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” Prior year revenue recognition follows ASU Topic 605, Revenue Recognition. The following describes principal activities, separated by major product or service, from which the Company generates its revenues: Restaurant Sales Revenue from restaurant sales is recognized when food and beverage products are sold in Company-owned restaurants. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities. Franchise Revenues Franchise revenues consist of 1) franchise royalties, 2) supplier and distributor incentive revenues, 3) franchise license fees, 4) area development exclusivity fees and foreign master license fees, 5) advertising funds, and 6) supplier convention funds. Franchise royalties, which are based on a percentage of franchise restaurant sales, are recognized as sales occur. Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer. Franchise license fees are typically billed upon execution of the franchise agreement and amortized over the term of the franchise agreement which can range from five to 20 years. Fees received for renewal periods are amortized over the life of the renewal period. Area development exclusivity fees and foreign master license fees are typically billed upon execution of the area development and foreign master license agreements. Area development exclusivity fees are included in deferred revenue in the Condensed Consolidated Balance Sheets and allocated on a pro rata basis to all stores opened under that specific development agreement. Area development exclusivity fees that include rights to subfranchise are amortized as revenue over the term of the contract. For periods prior to adoption of Topic 606, revenue was recognized when we performed our obligations related to such fees, primarily the store opening date for initial franchise fees and area development fees, or the date the renewal option was effective for renewal fees. Advertising fund contributions for Pie Five units represent contributions collected where we have control over the activities of the fund. Contributions are based on a percentage of net retail sales. The adoption of Topic 606 revises the determination of whether these arrangements are considered principal versus agent. For Pie Five, we have determined that we are the principal in these arrangements, and advertising fund contributions and expenditures are, therefore, reported on a gross basis in the Condensed Consolidated Statements of Income. In general, we expect such advertising fund contributions and expenditures to be largely offsetting and, therefore, do not expect a significant impact on our reported income before income taxes. Our obligation related to these funds is to develop and conduct advertising activities. Pie Five marketing fund contributions are billed and collected weekly. Supplier convention funds are deferred until the obligations of the agreement are met and the event takes place. Accounting Standards Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under GAAP, including industry-specific requirements, and provides companies with a single framework for recognizing revenue from contracts with customers. In March and April 2016, the FASB issued Topic 606. This update and subsequently issued amendments require companies to recognize revenue at amounts that reflect the consideration to which the companies expect to be entitled in exchange for those goods or services at the time of transfer. Topic 606 requires that we assess contracts to determine each separate and distinct performance obligation. If a contract has multiple performance obligations, we allocate the transaction price using our best estimate of the standalone selling price to each distinct good or service in the contract. The Company adopted Topic 606 as of June 25, 2018. See Note 2 for additional information. 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. Compensation cost for restricted stock units (“RSU’s”) is measured as an amount equal to the fair value of the RSU’s 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. Discontinuation of Norco Distribution Division During the fiscal quarter ended December 24, 2017, the Company discontinued its Norco distribution division and revised its arrangements with third party suppliers and distributors of food, equipment and supplies. As a result, sale of food, equipment and supplies is no longer recognized as revenue and the cost of such items is no longer included in cost of sales. The Company now recognizes incentive revenues received from third party suppliers and distributors as revenue.

2. Adoption of ASU 2014-09, Rev

2. Adoption of ASU 2014-09, Revenue from Contracts with Customers	3 Months Ended
	Sep. 23, 2018
Revenue from Contract with Customer [Abstract]
Adoption of ASU 2014-09, Revenue from Contracts with Customers	2) Adoption of ASU 2014-09, “Revenue from Contracts with Customers” The Company adopted ASU 2014-09 and Topic 606 using the modified retrospective transition method effective June 25, 2018. Results for reporting periods beginning after June 25, 2018 are presented in accordance with Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historical accounting under Topic 605, Revenue Recognition. A cumulative effect adjustment of $1.6 million was recorded as a reduction to retained earnings as of June 25, 2018 to reflect the impact of adopting Topic 606. The impact of applying Topic 606 for the quarter ended September 23, 2018, was an increase in revenues of $450 thousand and an increase in pre-tax income of $31 thousand. The adoption of Topic 606 did not impact the recognition and reporting of our two largest sources of revenue: franchise royalties and supplier and distributor incentives. The items impacted by the adoption include the timing of franchise and development revenue recognition and the presentation of advertising funds and supplier convention contributions. Cumulative adjustment from adoption As noted above, an after-tax reduction of $1.6 million was recorded to retained earnings to reflect the cumulative impact of adopting Topic 606. This is comprised of $1.3 million related to domestic franchise and renewal fees, $0.2 million related to domestic area development fees and $0.3 million related to international development and franchise master license fees partially offset by $0.2 million in deferral of contract-related expenses. The following chart presents the specific line items impacted by the cumulative adjustment to opening retained earnings: As Reported Adjusted June 24, Total Balance Sheet (In thousands, except share amounts) 2018 Adjustment June 25, 2018 ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,386 $ — $ 1,386 Accounts receivable, less allowance for bad debts of $158 1,518 — 1,518 Other receivable 300 — 300 Notes receivable 712 — 712 Inventories 6 — 6 Income tax receivable 5 — 5 Property held for sale 539 — 539 Deferred contract charges — 10 10 Prepaid expenses and other 273 — 273 Total current assets 4,739 10 4,749 LONG-TERM ASSETS Property, plant and equipment, net 1,510 — 1,510 Intangible assets definite-lived, net 212 — 212 Long-term notes receivable 803 — 803 Deferred tax asset, net 3,479 — 3,479 Long term deferred contract charges — 182 182 Deposits and other 243 — 243 Total assets $ 10,986 $ 192 $ 11,178 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable - trade $ 774 $ — $ 774 Accrued expenses 1,109 (4 ) 1,105 Deferred rent 32 — 32 Deferred revenues 65 243 308 Total current liabilities 1,980 239 2,219 LONG-TERM LIABILITIES Convertible notes 1,562 — 1,562 Deferred rent, net of current portion 433 — 433 Deferred revenues, net of current portion 670 1,575 2,245 Other long-term liabilities 42 — 42 Total liabilities 4,687 1,814 6,501 COMMITMENTS AND CONTINGENCIES (SEE NOTE 3) SHAREHOLDERS' EQUITY Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares outstanding 15,047,470 shares 222 — 222 Additional paid-in capital 33,206 — 33,206 Accumulated deficit (2,493 ) (1,622 ) (4,115 ) Treasury stock at cost Shares in treasury: 7,119,204 (24,636 ) — (24,636 ) Total shareholders' equity 6,299 (1,622 ) 4,677 Total liabilities and shareholders' equity $ 10,986 $ 192 $ 11,178 The following charts present the specific line items impacted by the application of Topic 606 in the first quarter of fiscal 2019. As Reported Balance Sheet September 23, Total Without Adoption (In thousands, except share amounts) 2018 (Unaudited) Adjustment of Topic 606 ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,006 $ — $ 2,006 Accounts receivable, less allowance for bad debts of $179 1,357 — 1,357 Notes receivable 939 — 939 Inventories 6 — 6 Income tax receivable 4 — 4 Property held for sale 467 — 467 Deferred contract charges 15 15 30 Prepaid expenses and other 351 (47 ) 304 Total current assets 5,145 (32 ) 5,113 LONG-TERM ASSETS Property, plant and equipment, net 1,391 — 1,391 Intangible assets definite-lived, net 202 — 202 Long-term notes receivable 791 — 791 Deferred tax asset, net 3,462 — 3,462 Long term deferred contract charges 221 221 442 Deposits and other 243 — 243 Total assets $ 11,455 $ 189 $ 11,644 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable - trade $ 797 $ — $ 797 Accrued expenses 836 3 839 Deferred rent 34 — 34 Deferred revenues 428 240 668 Total current liabilities 2,095 243 2,338 LONG-TERM LIABILITIES Convertible notes 1,567 — 1,567 Deferred rent, net of current portion 424 — 424 Deferred revenues, net of current portion 2,399 1,538 3,937 Other long-term liabilities 48 — 48 Total liabilities 6,533 1,781 8,314 COMMITMENTS AND CONTINGENCIES (SEE NOTE 3) SHAREHOLDERS' EQUITY Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,190,515 shares outstanding 15,071,311 shares 222 — 222 Additional paid-in capital 33,343 — 33,343 Accumulated deficit (4,007 ) (1,592 ) (5,599 ) Treasury stock at cost Shares in treasury: 7,119,204 (24,636 ) — (24,636 ) Total shareholders' equity 4,922 (1,592 ) 3,330 Total liabilities and shareholders' equity $ 11,455 $ 189 $ 11,644 As Reported Income Statement Three Months Ended Without Adoption September 23, Total of 2018 Adjustments Topic 606 REVENUES: $ 2,991 $ (450 ) $ 2,541 COSTS AND EXPENSES: Cost of sales 159 — 159 General and administrative expenses 1,414 — 1,414 Franchise expenses 1,061 (419 ) 642 Pre-opening expenses — — — Loss/(Gain) on sale of assets (4 ) — (4 ) Impairment of long-lived assets and other lease charges 15 — 15 Bad debt 24 — 24 Interest expense 25 — 25 Depreciation and amortization expense 139 — 139 Total costs and expenses 2,833 (419 ) 2,414 INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES 158 (31 ) 127 Income tax expense 50 — 50 INCOME/(LOSS) FROM CONTINUING OPERATIONS 108 (31 ) 77 Loss from discontinued operations, net of taxes — — — NET INCOME / (LOSS) $ 108 $ (31 ) $ 77 INCOME / (LOSS) PER SHARE OF COMMON STOCK - BASIC: Income / (loss) from continuing operations $ 0.01 $ (0.00 ) $ 0.01 Loss from discontinued operations — — — Net income / (loss) $ 0.01 $ (0.00 ) $ 0.01 INCOME / (LOSS) PER SHARE OF COMMON STOCK - DILUTED: Income / (loss) from continuing operations $ 0.01 $ (0.00 ) $ 0.01 Loss from discontinued operations — — — Net income / (loss) $ 0.01 $ (0.00 ) $ 0.01 Weighted average common shares outstanding - basic 15,064 15,064 15,064 Weighted average common and potential dilutive common shares outstanding 15,897 15,897 15,897

3. Commitments and Contingencie

3. Commitments and Contingencies	3 Months Ended
	Sep. 23, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(3) Commitments and Contingencies On May 23, 2007, the Company’s board of directors approved a stock purchase plan (the “2007 Stock Purchase Plan”) authorizing the purchase on our behalf of up to 1,016,000 shares of our common stock in the open market or in privately negotiated transactions. On June 2, 2008, the Company’s board of directors amended the 2007 Stock Purchase Plan to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 2,016,000 shares. On April 22, 2009 the Company’s board of directors amended the 2007 Stock Purchase Plan again to increase the number of shares of common stock the Company may repurchase by 1,000,000 shares to a total of 3,016,000 shares. The 2007 Stock Purchase Plan does not have an expiration date. There were no stock purchases in the fiscal quarter ended September 23, 2018. 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.

4. Stock-Based Compensation

4. Stock-Based Compensation	3 Months Ended
	Sep. 23, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	4) Stock-Based Compensation Stock Options: For the fiscal quarter ended September 23, 2018, the Company did not recognize any stock-based compensation expense related to stock options compared to $10 thousand in the same period of the prior year. As of September 23, 2018, there was no unamortized stock-based compensation expense related to stock options. The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options: Three Months Ended September 23, September 24, Shares Shares Outstanding at beginning of year 478,056 478,056 Granted — — Exercised — — Forfeited/Canceled/Expired (100,000 ) — Outstanding at end of period 378,056 478,056 Exercisable at end of Period 378,056 438,056 Restricted Stock Units: For the fiscal quarter ended September 23, 2018, the Company recognized $0.1 million in stock-based compensation expense related to RSU’s compared to no expense in the same period of the prior year. As of September 23, 2018, unamortized stock-based compensation expense related to RSU’s was $0.5 million. A summary of the status of restricted stock units as of September 23, 2018, and changes during the fiscal quarter then ended is presented below: Number of Restricted Stock Units Unvested at June 24, 2018 908,293 Granted — Vested — Forfeited (134,723 ) Unvested at September 23, 2018 773,570

5. Earnings per Share (EPS)

5. Earnings per Share (EPS)	3 Months Ended
	Sep. 23, 2018
Earnings Per Share [Abstract]
Earnings per Share (EPS)	5) 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 23, September 24, 2018 2017 Income/(loss) from continuing operations $ 108 $ (131 ) Loss from discontinued operations — (225 ) Net income/(loss) available to common stockholders $ 108 $ (356 ) Interest saved on convertible notes of $1,567 at 4% $ 16 $ — Adjusted net income/(loss) $ 124 $ (356 ) BASIC: Weighted average common shares 15,064 11,159 Income/(loss) from continuing operations per common share $ 0.01 $ (0.01 ) Loss from discontinued operations per common share — (0.02 ) Net income/(loss) per common share $ 0.01 $ (0.03 ) DILUTED: Weighted average common shares 15,064 11,159 Convertible notes 833 — Dilutive stock options — — Weighted average common shares outstanding 15,897 11,159 Income/(loss) from continuing operations per common share $ 0.01 $ (0.01 ) Loss from discontinued operations per common share — (0.02 ) Net income/(loss) per common share $ 0.01 $ (0.03 ) For the three months ended September 23, 2018, options to purchase 378,056 shares of common stock at exercise prices ranging from $1.55 to $13.11 were excluded from the computation of diluted EPS because their inclusion would have been anti-dilutive. For the three months ended September 24, 2017, options to purchase 478,056 shares of common stock at exercise prices from $1.87 to $13.11 were excluded from the computation of diluted EPS because their inclusion would have been anti-dilutive.

6. Closed restaurants and disco

6. Closed restaurants and discontinued operations	3 Months Ended
	Sep. 23, 2018
Discontinued Operations and Disposal Groups [Abstract]
Closed restaurants and discontinued operations	6) 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. 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 attributable to the discontinued Norco distribution and supply division, leased buildings associated with Company-owned restaurants closed in prior years, and closed Company-owned restaurants closed in the reported period.

7. Income Taxes

7. Income Taxes	3 Months Ended
	Sep. 23, 2018
Income Tax Disclosure [Abstract]
Income Taxes	7) Income Taxes For the three months ended September 23, 2018, the Company recorded an income tax expense of $50 thousand calculated at a rate consistent with the 21% statutory U.S. federal rate. Income tax expense consists of $28 thousand in state taxes and $22 thousand in deferred taxes. The Company anticipates utilizing net operating loss carryforwards to offset any federal taxes. 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. In assessing the need for the valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of deferred tax assets. Future sources of taxable income are also considered in determining the amount of the recorded valuation allowance. Based on the review of this evidence, the Company determined it was appropriate to reverse a portion of the valuation allowance against the deferred tax assets as of June 24, 2018. As of September 23, 2018, the Company had $5.9 million of gross deferred tax assets partially offset by a valuation allowance of $2.4 million. The Company determined it was not necessary to further adjust the of valuation allowance. However, the Company will continue to review the need for an adjustment to the valuation allowance.

8. Segment Reporting

8. Segment Reporting	3 Months Ended
	Sep. 23, 2018
Segment Reporting [Abstract]
Segment Reporting	(8) Segment Reporting The Company has three reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information: (1) Pizza Inn Franchising, (2) Pie Five Franchising and (3) Company-Owned Restaurants. These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the three operating segments. Other revenue consists of non-recurring items. The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for this segment is derived from franchise royalties, franchise fees, sale of area development and foreign master license rights and incentive payments from third party suppliers and distributors. Assets for this segment include equipment, furniture and fixtures. The Company-Owned Restaurant segment includes sales and operating results for all Company-owned restaurants. Assets for this segment include equipment, furniture and fixtures for the Company-owned restaurants. Corporate administration and other assets primarily include cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets. All assets are located within the United States. Summarized in the following table are net sales and operating revenues, depreciation and amortization expense, income from continuing operations before taxes, capital expenditures and assets for the Company's reportable segments as of the three months ended September 23, 2018 and September 24, 2017 (in thousands): Three Months Ended September 23, September 24, 2018 2017 Net sales and operating revenues: Pizza Inn Franchising $ 1,904 $ 1,774 Pie Five Franchising 963 1,483 Company-Owned Restaurants (Note 1) 114 2,175 Interest income 10 1 Consolidated revenues $ 2,991 $ 5,433 Depreciation and amortization: Pizza Inn Franchising $ — $ — Pie Five Franchising — — Company-Owned Restaurants (Note 1) 31 200 Combined 31 200 Corporate administration and other (Note 2) 108 114 Depreciation and amortization $ 139 $ 314 Income/(Loss) from continuing operations before taxes: Pizza Inn Franchising $ 1,347 $ 1,478 Pie Five Franchising 459 1,139 Company-Owned Restaurants (Note 1) (129 ) (838 ) Combined 1,677 1,779 Corporate administration and other (1,519 ) (1,898 ) Income/(loss) from continuing operations before taxes $ 158 $ (119 ) Geographic information (revenues): United States $ 2,894 $ 5,355 Foreign countries 97 78 Consolidated total $ 2,991 $ 5,433 Notes: (1) Company stores that were closed are included in discontinued operations in the accompanying Condensed Consolidated Statement of Operations. (2) Portions of corporate administration and other have been allocated to segments.

1. Summary of Significant Acc_2

1. Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 23, 2018
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 23, 2018 and September 24, 2017 each contained 13 weeks.
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.
Revenue Recognition	Revenue Recognition Revenue is measured based on consideration specified in contracts with customers and excludes incentives and amounts collected on behalf of third parties, primarily sales tax. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. As further described in Accounting Standards Adopted, Adoption of ASU 2014-09, “Revenue from Contracts with Customers,” revenue recognition in fiscal 2019 follows ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” and ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” Prior year revenue recognition follows ASU Topic 605, Revenue Recognition. The following describes principal activities, separated by major product or service, from which the Company generates its revenues: Restaurant Sales Revenue from restaurant sales is recognized when food and beverage products are sold in Company-owned restaurants. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities. Franchise Revenues Franchise revenues consist of 1) franchise royalties, 2) supplier and distributor incentive revenues, 3) franchise license fees, 4) area development exclusivity fees and foreign master license fees, 5) advertising funds, and 6) supplier convention funds. Franchise royalties, which are based on a percentage of franchise restaurant sales, are recognized as sales occur. Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer. Franchise license fees are typically billed upon execution of the franchise agreement and amortized over the term of the franchise agreement which can range from five to 20 years. Fees received for renewal periods are amortized over the life of the renewal period. Area development exclusivity fees and foreign master license fees are typically billed upon execution of the area development and foreign master license agreements. Area development exclusivity fees are included in deferred revenue in the Condensed Consolidated Balance Sheets and allocated on a pro rata basis to all stores opened under that specific development agreement. Area development exclusivity fees that include rights to subfranchise are amortized as revenue over the term of the contract. For periods prior to adoption of Topic 606, revenue was recognized when we performed our obligations related to such fees, primarily the store opening date for initial franchise fees and area development fees, or the date the renewal option was effective for renewal fees. Advertising fund contributions for Pie Five units represent contributions collected where we have control over the activities of the fund. Contributions are based on a percentage of net retail sales. The adoption of Topic 606 revises the determination of whether these arrangements are considered principal versus agent. For Pie Five, we have determined that we are the principal in these arrangements, and advertising fund contributions and expenditures are, therefore, reported on a gross basis in the Condensed Consolidated Statements of Income. In general, we expect such advertising fund contributions and expenditures to be largely offsetting and, therefore, do not expect a significant impact on our reported income before income taxes. Our obligation related to these funds is to develop and conduct advertising activities. Pie Five marketing fund contributions are billed and collected weekly. Supplier convention funds are deferred until the obligations of the agreement are met and the event takes place.
Accounting Standards Adopted	Accounting Standards Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under GAAP, including industry-specific requirements, and provides companies with a single framework for recognizing revenue from contracts with customers. In March and April 2016, the FASB issued Topic 606. This update and subsequently issued amendments require companies to recognize revenue at amounts that reflect the consideration to which the companies expect to be entitled in exchange for those goods or services at the time of transfer. Topic 606 requires that we assess contracts to determine each separate and distinct performance obligation. If a contract has multiple performance obligations, we allocate the transaction price using our best estimate of the standalone selling price to each distinct good or service in the contract. The Company adopted Topic 606 as of June 25, 2018. See Note 2 for additional information.
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. Compensation cost for restricted stock units (“RSU’s”) is measured as an amount equal to the fair value of the RSU’s 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.
Discontinuation of Norco Distribution Division	Discontinuation of Norco Distribution Division During the fiscal quarter ended December 24, 2017, the Company discontinued its Norco distribution division and revised its arrangements with third party suppliers and distributors of food, equipment and supplies. As a result, sale of food, equipment and supplies is no longer recognized as revenue and the cost of such items is no longer included in cost of sales. The Company now recognizes incentive revenues received from third party suppliers and distributors as revenue.

2. Adoption of ASU 2014-09, R_2

2. Adoption of ASU 2014-09, Revenue from Contracts with Customers (Tables)	3 Months Ended
	Sep. 23, 2018
Cumulative adjustment from adoption	As Reported Adjusted June 24, Total Balance Sheet (In thousands, except share amounts) 2018 Adjustment June 25, 2018 ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,386 $ — $ 1,386 Accounts receivable, less allowance for bad debts of $158 1,518 — 1,518 Other receivable 300 — 300 Notes receivable 712 — 712 Inventories 6 — 6 Income tax receivable 5 — 5 Property held for sale 539 — 539 Deferred contract charges — 10 10 Prepaid expenses and other 273 — 273 Total current assets 4,739 10 4,749 LONG-TERM ASSETS Property, plant and equipment, net 1,510 — 1,510 Intangible assets definite-lived, net 212 — 212 Long-term notes receivable 803 — 803 Deferred tax asset, net 3,479 — 3,479 Long term deferred contract charges — 182 182 Deposits and other 243 — 243 Total assets $ 10,986 $ 192 $ 11,178 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable - trade $ 774 $ — $ 774 Accrued expenses 1,109 (4 ) 1,105 Deferred rent 32 — 32 Deferred revenues 65 243 308 Total current liabilities 1,980 239 2,219 LONG-TERM LIABILITIES Convertible notes 1,562 — 1,562 Deferred rent, net of current portion 433 — 433 Deferred revenues, net of current portion 670 1,575 2,245 Other long-term liabilities 42 — 42 Total liabilities 4,687 1,814 6,501 COMMITMENTS AND CONTINGENCIES (SEE NOTE 3) SHAREHOLDERS' EQUITY Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares outstanding 15,047,470 shares 222 — 222 Additional paid-in capital 33,206 — 33,206 Accumulated deficit (2,493 ) (1,622 ) (4,115 ) Treasury stock at cost Shares in treasury: 7,119,204 (24,636 ) — (24,636 ) Total shareholders' equity 6,299 (1,622 ) 4,677 Total liabilities and shareholders' equity $ 10,986 $ 192 $ 11,178
Balance Sheet Without Adoption [Member]
Cumulative adjustment from adoption	As Reported Income Statement Three Months Ended Without Adoption September 23, Total of 2018 Adjustments Topic 606 REVENUES: $ 2,991 $ (450 ) $ 2,541 COSTS AND EXPENSES: Cost of sales 159 — 159 General and administrative expenses 1,414 — 1,414 Franchise expenses 1,061 (419 ) 642 Pre-opening expenses — — — Loss/(Gain) on sale of assets (4 ) — (4 ) Impairment of long-lived assets and other lease charges 15 — 15 Bad debt 24 — 24 Interest expense 25 — 25 Depreciation and amortization expense 139 — 139 Total costs and expenses 2,833 (419 ) 2,414 INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES 158 (31 ) 127 Income tax expense 50 — 50 INCOME/(LOSS) FROM CONTINUING OPERATIONS 108 (31 ) 77 Loss from discontinued operations, net of taxes — — — NET INCOME / (LOSS) $ 108 $ (31 ) $ 77 INCOME / (LOSS) PER SHARE OF COMMON STOCK - BASIC: Income / (loss) from continuing operations $ 0.01 $ (0.00 ) $ 0.01 Loss from discontinued operations — — — Net income / (loss) $ 0.01 $ (0.00 ) $ 0.01 INCOME / (LOSS) PER SHARE OF COMMON STOCK - DILUTED: Income / (loss) from continuing operations $ 0.01 $ (0.00 ) $ 0.01 Loss from discontinued operations — — — Net income / (loss) $ 0.01 $ (0.00 ) $ 0.01 Weighted average common shares outstanding - basic 15,064 15,064 15,064 Weighted average common and potential dilutive common shares outstanding 15,897 15,897 15,897
Statement of Operations Without Adoption [Member]
Cumulative adjustment from adoption	As Reported Balance Sheet September 23, Total Without Adoption (In thousands, except share amounts) 2018 (Unaudited) Adjustment of Topic 606 ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,006 $ — $ 2,006 Accounts receivable, less allowance for bad debts of $179 1,357 — 1,357 Notes receivable 939 — 939 Inventories 6 — 6 Income tax receivable 4 — 4 Property held for sale 467 — 467 Deferred contract charges 15 15 30 Prepaid expenses and other 351 (47 ) 304 Total current assets 5,145 (32 ) 5,113 LONG-TERM ASSETS Property, plant and equipment, net 1,391 — 1,391 Intangible assets definite-lived, net 202 — 202 Long-term notes receivable 791 — 791 Deferred tax asset, net 3,462 — 3,462 Long term deferred contract charges 221 221 442 Deposits and other 243 — 243 Total assets $ 11,455 $ 189 $ 11,644 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable - trade $ 797 $ — $ 797 Accrued expenses 836 3 839 Deferred rent 34 — 34 Deferred revenues 428 240 668 Total current liabilities 2,095 243 2,338 LONG-TERM LIABILITIES Convertible notes 1,567 — 1,567 Deferred rent, net of current portion 424 — 424 Deferred revenues, net of current portion 2,399 1,538 3,937 Other long-term liabilities 48 — 48 Total liabilities 6,533 1,781 8,314 COMMITMENTS AND CONTINGENCIES (SEE NOTE 3) SHAREHOLDERS' EQUITY Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,190,515 shares outstanding 15,071,311 shares 222 — 222 Additional paid-in capital 33,343 — 33,343 Accumulated deficit (4,007 ) (1,592 ) (5,599 ) Treasury stock at cost Shares in treasury: 7,119,204 (24,636 ) — (24,636 ) Total shareholders' equity 4,922 (1,592 ) 3,330 Total liabilities and shareholders' equity $ 11,455 $ 189 $ 11,644

4. Stock-Based Compensation (Ta

4. Stock-Based Compensation (Tables)	3 Months Ended
	Sep. 23, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Summary of Outstanding Stock Options	Three Months Ended September 23, September 24, Shares Shares Outstanding at beginning of year 478,056 478,056 Granted — — Exercised — — Forfeited/Canceled/Expired (100,000 ) — Outstanding at end of period 378,056 478,056 Exercisable at end of Period 378,056 438,056
Schedule of Summary of Restricted Stock Units	Number of Restricted Stock Units Unvested at June 24, 2018 908,293 Granted — Vested — Forfeited (134,723 ) Unvested at September 23, 2018 773,570

5. Earnings per Share (EPS) (Ta

5. Earnings per Share (EPS) (Tables)	3 Months Ended
	Sep. 23, 2018
Earnings Per Share [Abstract]
Schedule Of Earnings Per Share Basic And Diluted	Three Months Ended September 23, September 24, 2018 2017 Income/(loss) from continuing operations $ 108 $ (131 ) Loss from discontinued operations — (225 ) Net income/(loss) available to common stockholders $ 108 $ (356 ) Interest saved on convertible notes of $1,567 at 4% $ 16 $ — Adjusted net income/(loss) $ 124 $ (356 ) BASIC: Weighted average common shares 15,064 11,159 Income/(loss) from continuing operations per common share $ 0.01 $ (0.01 ) Loss from discontinued operations per common share — (0.02 ) Net income/(loss) per common share $ 0.01 $ (0.03 ) DILUTED: Weighted average common shares 15,064 11,159 Convertible notes 833 — Dilutive stock options — — Weighted average common shares outstanding 15,897 11,159 Income/(loss) from continuing operations per common share $ 0.01 $ (0.01 ) Loss from discontinued operations per common share — (0.02 ) Net income/(loss) per common share $ 0.01 $ (0.03 )

8. Segment Reporting (Tables)

8. Segment Reporting (Tables)	3 Months Ended
	Sep. 23, 2018
Segment Reporting [Abstract]
Segment Reporting Detail	Three Months Ended September 23, September 24, 2018 2017 Net sales and operating revenues: Pizza Inn Franchising $ 1,904 $ 1,774 Pie Five Franchising 963 1,483 Company-Owned Restaurants (Note 1) 114 2,175 Interest income 10 1 Consolidated revenues $ 2,991 $ 5,433 Depreciation and amortization: Pizza Inn Franchising $ — $ — Pie Five Franchising — — Company-Owned Restaurants (Note 1) 31 200 Combined 31 200 Corporate administration and other (Note 2) 108 114 Depreciation and amortization $ 139 $ 314 Income/(Loss) from continuing operations before taxes: Pizza Inn Franchising $ 1,347 $ 1,478 Pie Five Franchising 459 1,139 Company-Owned Restaurants (Note 1) (129 ) (838 ) Combined 1,677 1,779 Corporate administration and other (1,519 ) (1,898 ) Income/(loss) from continuing operations before taxes $ 158 $ (119 ) Geographic information (revenues): United States $ 2,894 $ 5,355 Foreign countries 97 78 Consolidated total $ 2,991 $ 5,433 Notes: (1) Company stores that were closed are included in discontinued operations in the accompanying Condensed Consolidated Statement of Operations. (2) Portions of corporate administration and other have been allocated to segments.

2. Adoption of ASU 2014-09, R_3

2. Adoption of ASU 2014-09, Revenue from Contracts with Customers (Details - Cumulative Adjustment Retained Earnings) - USD ($)	Sep. 23, 2018	Jun. 25, 2018	Jun. 24, 2018	Sep. 24, 2017	Jun. 23, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 2,006,000		$ 1,386,000	$ 3,976,000	$ 451,000
Accounts receivable, less allowance for bad debts of $158	1,357,000		1,518,000
Other receivable	939,000		300,000
Notes receivable	939,000		712,000
Inventories	6,000		6,000
Income tax receivable	4,000		5,000
Property held for sale	467,000		539,000
Deferred contract charges	15,000
Prepaid expenses and other	351,000		273,000
Total current assets	5,145,000		4,739,000
LONG-TERM ASSETS
Property, plant and equipment, net	1,391,000		1,510,000
Intangible assets definite-lived, net	202,000		212,000
Long-term notes receivable	791,000		803,000
Deferred tax asset, net	3,462,000		3,479,000
Long term deferred contract charges	221,000
Deposits and other	243,000		243,000
Total assets	11,455,000		10,986,000
CURRENT LIABILITIES
Accounts payable - trade	797,000		774,000
Accrued expenses	836,000		1,109,000
Deferred rent	34,000		32,000
Deferred revenues	428,000		65,000
Total current liabilities	2,095,000		1,980,000
LONG-TERM LIABILITIES
Convertible notes	1,567,000		1,562,000
Deferred rent, net of current portion	424,000		433,000
Deferred revenues, net of current portion	2,399,000		670,000
Other long-term liabilities	48,000		42,000
Total liabilities	6,533,000		4,687,000
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares; outstanding 15,047,470 shares	222,000		222,000
Additional paid-in capital	33,343,000		33,206,000
Accumulated deficit	(4,007,000)		(2,493,000)
Treasury stock at cost Shares in treasury: 7,119,204	(24,636,000)		(24,636,000)
Total shareholders' equity	4,922,000		6,299,000
Total liabilities and shareholders' equity	$ 11,455,000		10,986,000
Adjustment From Adoption [Member]
CURRENT ASSETS
Cash and cash equivalents
Accounts receivable, less allowance for bad debts of $158
Other receivable
Notes receivable
Inventories
Income tax receivable
Property held for sale
Deferred contract charges			10,000
Prepaid expenses and other
Total current assets			10,000
LONG-TERM ASSETS
Property, plant and equipment, net
Intangible assets definite-lived, net
Long-term notes receivable
Deferred tax asset, net
Long term deferred contract charges			181,000
Deposits and other
Total assets			191,000
CURRENT LIABILITIES
Accounts payable - trade
Accrued expenses			(4,000)
Deferred rent
Deferred revenues			243,000
Total current liabilities			239,000
LONG-TERM LIABILITIES
Convertible notes
Deferred rent, net of current portion
Deferred revenues, net of current portion			1,575,000
Other long-term liabilities
Total liabilities			1,814,000
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares; outstanding 15,047,470 shares
Additional paid-in capital
Accumulated deficit			(1,623,000)
Treasury stock at cost Shares in treasury: 7,119,204
Total shareholders' equity			(1,623,000)
Total liabilities and shareholders' equity			$ 191,000
Balance Sheet Adjustment [Member]
CURRENT ASSETS
Cash and cash equivalents		$ 1,386,000
Accounts receivable, less allowance for bad debts of $158		1,518,000
Other receivable		300,000
Notes receivable		712,000
Inventories		6,000
Income tax receivable		5,000
Property held for sale		539,000
Deferred contract charges		10,000
Prepaid expenses and other		273,000
Total current assets		4,749,000
LONG-TERM ASSETS
Property, plant and equipment, net		1,510,000
Intangible assets definite-lived, net		212,000
Long-term notes receivable		803,000
Deferred tax asset, net		3,479,000
Long term deferred contract charges		181,000
Deposits and other		243,000
Total assets		11,177,000
CURRENT LIABILITIES
Accounts payable - trade		774,000
Accrued expenses		1,105,000
Deferred rent		32,000
Deferred revenues		308,000
Total current liabilities		2,219,000
LONG-TERM LIABILITIES
Convertible notes		1,562,000
Deferred rent, net of current portion		433,000
Deferred revenues, net of current portion		2,245,000
Other long-term liabilities		42,000
Total liabilities		6,501,000
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares; outstanding 15,047,470 shares		222,000
Additional paid-in capital		33,206,000
Accumulated deficit		(4,116,000)
Treasury stock at cost Shares in treasury: 7,119,204		24,636,000
Total shareholders' equity		4,676,000
Total liabilities and shareholders' equity		$ 11,177,000

2. Adoption of ASU 2014-09, R_4

2. Adoption of ASU 2014-09, Revenue from Contracts with Customers (Details - Balance Sheet wiithout Adoption - USD ($)	Sep. 23, 2018	Jun. 24, 2018	Sep. 24, 2017	Jun. 23, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 2,006,000	$ 1,386,000	$ 3,976,000	$ 451,000
Accounts receivable, less allowance for bad debts of $158	1,357,000	1,518,000
Notes receivable	939,000	712,000
Inventories	6,000	6,000
Income tax receivable	4,000	5,000
Property held for sale	467,000	539,000
Deferred contract charges	15,000
Prepaid expenses and other	351,000	273,000
Total current assets	5,145,000	4,739,000
LONG-TERM ASSETS
Property, plant and equipment, net	1,391,000	1,510,000
Intangible assets definite-lived, net	202,000	212,000
Long-term notes receivable	791,000	803,000
Deferred tax asset, net	3,462,000	3,479,000
Long term deferred contract charges	221,000
Deposits and other	243,000	243,000
Total assets	11,455,000	10,986,000
CURRENT LIABILITIES
Accounts payable - trade	797,000	774,000
Accrued expenses	836,000	1,109,000
Deferred rent	34,000	32,000
Deferred revenues	428,000	65,000
Total current liabilities	2,095,000	1,980,000
LONG-TERM LIABILITIES
Convertible notes	1,567,000	1,562,000
Deferred rent, net of current portion	424,000	433,000
Deferred revenues, net of current portion	2,399,000	670,000
Other long-term liabilities	48,000	42,000
Total liabilities	6,533,000	4,687,000
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares; outstanding 15,047,470 shares	222,000	222,000
Additional paid-in capital	33,343,000	33,206,000
Accumulated deficit	(4,007,000)	(2,493,000)
Treasury stock at cost Shares in treasury: 7,119,204	(24,636,000)	(24,636,000)
Total shareholders' equity	4,922,000	6,299,000
Total liabilities and shareholders' equity	11,455,000	$ 10,986,000
Adjustment From Adoption2 [Member]
CURRENT ASSETS
Cash and cash equivalents
Accounts receivable, less allowance for bad debts of $158
Notes receivable
Inventories
Income tax receivable
Property held for sale
Deferred contract charges	15,000
Prepaid expenses and other	(47,000)
Total current assets	(32,000)
LONG-TERM ASSETS
Property, plant and equipment, net
Intangible assets definite-lived, net
Long-term notes receivable
Deferred tax asset, net
Long term deferred contract charges	221,000
Deposits and other
Total assets	189,000
CURRENT LIABILITIES
Accounts payable - trade
Accrued expenses	3,000
Deferred rent
Deferred revenues	240,000
Total current liabilities	243,000
LONG-TERM LIABILITIES
Convertible notes
Deferred rent, net of current portion
Deferred revenues, net of current portion	1,538,000
Other long-term liabilities
Total liabilities	1,781,000
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares; outstanding 15,047,470 shares
Additional paid-in capital
Accumulated deficit	(1,592,000)
Treasury stock at cost Shares in treasury: 7,119,204
Total shareholders' equity	(1,592,000)
Total liabilities and shareholders' equity	189,000
Balance Sheet Adjustment [Member]
CURRENT ASSETS
Cash and cash equivalents	2,006,000
Accounts receivable, less allowance for bad debts of $158	1,357,000
Notes receivable	939,000
Inventories	6,000
Income tax receivable	4,000
Property held for sale	467,000
Deferred contract charges	30,000
Prepaid expenses and other	304,000
Total current assets	5,113,000
LONG-TERM ASSETS
Property, plant and equipment, net	1,391,000
Intangible assets definite-lived, net	202,000
Long-term notes receivable	791,000
Deferred tax asset, net	3,462,000
Long term deferred contract charges	442,000
Deposits and other	243,000
Total assets	11,644,000
CURRENT LIABILITIES
Accounts payable - trade	797,000
Accrued expenses	839,000
Deferred rent	34,000
Deferred revenues	668,000
Total current liabilities	2,338,000
LONG-TERM LIABILITIES
Convertible notes	1,567,000
Deferred rent, net of current portion	424,000
Deferred revenues, net of current portion	3,937,000
Other long-term liabilities	48,000
Total liabilities	8,314,000
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares; outstanding 15,047,470 shares	222,000
Additional paid-in capital	33,343,000
Accumulated deficit	(5,599,000)
Treasury stock at cost Shares in treasury: 7,119,204	(24,636,000)
Total shareholders' equity	3,330,000
Total liabilities and shareholders' equity	$ 11,644,000

2. Adoption of ASU 2014-09, R_5

2. Adoption of ASU 2014-09, Revenue from Contracts with Customers (Details - Statement of Operations without Adoption) - USD ($)	3 Months Ended
	Sep. 23, 2018	Sep. 24, 2017
REVENUES	$ 2,991,000	$ 5,433,000
COSTS AND EXPENSES:
Cost of sales	159,000	2,086,000
General and administrative expenses	1,414,000	2,055,000
Franchise expenses	1,061,000	640,000
Pre-opening expenses		115,000
Loss/(Gain) on sale of assets	(4,000)	2,000
Impairment of long-lived assets and other lease charges	15,000	148,000
Bad debt	24,000	124,000
Interest expense	25,000	68,000
Depreciation and amortization expense	139,000	314,000
Total costs and expenses	2,833,000	5,552,000
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES	158,000	(119,000)
Income tax expense	50,000	12,000
INCOME/(LOSS) FROM CONTINUING OPERATIONS	108,000	(131,000)
Loss from discontinued operations		(225,000)
NET INCOME/(LOSS)	$ 108,000	$ (356,000)
INCOME/(LOSS) PER SHARE OF COMMON STOCK - BASIC:
Income/(Loss) from continuing operations	$ .01	$ .01
Loss from discontinued operations		(0.02)
Net Income/(Loss)	.01	(0.03)
INCOME/(LOSS) PER SHARE OF COMMON STOCK - DILUTED:
Income/(Loss) from continuing operations	.01	.01
Loss from discontinued operations		(0.02)
Net Income/(Loss)	$ 0.01	$ (0.03)
Weighted average common shares outstanding - basic	15,064	11,159
Weighted average common and potential dilutive common shares outstanding	15,897	11,159
Adjustment From Adoption3 [Member]
REVENUES	$ (450,000)
COSTS AND EXPENSES:
Cost of sales
General and administrative expenses
Franchise expenses	(419,000)
Pre-opening expenses
Loss/(Gain) on sale of assets
Impairment of long-lived assets and other lease charges
Bad debt
Interest expense
Depreciation and amortization expense
Total costs and expenses	(419,000)
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES	(31,000)
Income tax expense
INCOME/(LOSS) FROM CONTINUING OPERATIONS	(31,000)
Loss from discontinued operations
NET INCOME/(LOSS)	$ (31,000)
INCOME/(LOSS) PER SHARE OF COMMON STOCK - BASIC:
Income/(Loss) from continuing operations	$ 0
Loss from discontinued operations
Net Income/(Loss)	0
INCOME/(LOSS) PER SHARE OF COMMON STOCK - DILUTED:
Income/(Loss) from continuing operations	0
Loss from discontinued operations
Net Income/(Loss)	$ 0
Weighted average common shares outstanding - basic	15,064
Weighted average common and potential dilutive common shares outstanding	15,897
Statement of Operations Without Adoption [Member]
REVENUES	$ 2,541,000
COSTS AND EXPENSES:
Cost of sales	159,000
General and administrative expenses	1,414,000
Franchise expenses	642,000
Pre-opening expenses
Loss/(Gain) on sale of assets	(4,000)
Impairment of long-lived assets and other lease charges	15,000
Bad debt	24,000
Interest expense	25,000
Depreciation and amortization expense	139,000
Total costs and expenses	2,414,000
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES	127,000
Income tax expense	50,000
INCOME/(LOSS) FROM CONTINUING OPERATIONS	77,000
Loss from discontinued operations
NET INCOME/(LOSS)	$ 77,000
INCOME/(LOSS) PER SHARE OF COMMON STOCK - BASIC:
Income/(Loss) from continuing operations	$ 0.01
Loss from discontinued operations
Net Income/(Loss)	0.01
INCOME/(LOSS) PER SHARE OF COMMON STOCK - DILUTED:
Income/(Loss) from continuing operations	0.01
Loss from discontinued operations
Net Income/(Loss)	$ 0.01
Weighted average common shares outstanding - basic	15,064
Weighted average common and potential dilutive common shares outstanding	15,897

4. Stock-Based Compensation (De

4. Stock-Based Compensation (Details - Schedule of Summary of Outstanding Stock Options) - shares	3 Months Ended
	Sep. 23, 2018	Sep. 24, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding shares at beginning of year	478,056	478,056
Granted
Exercised
Forfeited/Canceled/Expired shares	(100,000)
Outstanding shares at end of year	378,056	478,056
Exerciseable at end of year	378,056	478,056

4. Stock-Based Compensation (_2

4. Stock-Based Compensation (Details - Schedule of Summary of Restricted Stock Units)	3 Months Ended
	Sep. 23, 2018shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unvested at beginning of June 24, 2018	908,293
Granted
Vested
Forfeited	(134,723)
Unvested at September 23, 2018	773,570

5. Earnings per Share (EPS) (De

5. Earnings per Share (EPS) (Details - Schedule Of Earnings Per Share Basic And Diluted) - USD ($)	3 Months Ended
	Sep. 23, 2018	Sep. 24, 2017
Income Statement [Abstract]
Income/(loss) from continuing operations	$ 108,000	$ (131,000)
Loss from discontinued operations		(225,000)
Net income/(loss) available to common stockholders	108,000	(356,000)
Interest saved on Notes of $1,567 at 4%	16,000
Adjusted net income/(loss)	$ 124,000	$ (356,000)
BASIC:
Weighted average common shares	15,064	11,159
Income/(loss) from continuing operations per common share	$ .01	$ .01
Loss from discontinued operations per common share		(0.02)
Net income/(loss) per common share	$ .01	$ (0.03)
DILUTED:
Weighted average common shares	15,064	11,159
Convertible Notes	833
Dilutive stock options
Weighted average common shares outstanding	15,897	11,159
Income/(loss) from continuing operations per common share	$ .01	$ .01
Loss from discontinued operations per common share		(0.02)
Net income/(loss) per common share	$ 0.01	$ (0.03)

8. Segment Reporting (Details -

8. Segment Reporting (Details - Segment Reporting) - USD ($)	3 Months Ended
	Sep. 23, 2018	Sep. 24, 2017
Depreciation and amortization	$ 139,000	$ 314,000
Interest Income	10,000	1,000
Gain/(Loss) from continuing operations before taxes	158,000	(119,000)
Consolidated revenues	2,991,000	5,433,000
Pizza Inn Franchising [Member]
Net sales and operating revenues	1,904,000	1,774,000
Depreciation and amortization
Gain/(Loss) from continuing operations before taxes	1,347,000	1,478,000
Pie Five Franchising [Member]
Net sales and operating revenues	963,000	1,483,000
Depreciation and amortization
Gain/(Loss) from continuing operations before taxes	459,000	1,139,000
Company-owned restaurants (1)
Net sales and operating revenues	114,000	2,175,000
Depreciation and amortization	31,000	200,000
Gain/(Loss) from continuing operations before taxes	(129,000)	(838,000)
Combined
Depreciation and amortization	31,000	200,000
Gain/(Loss) from continuing operations before taxes	1,677,000	1,779,000
Corporate administration and other (2)
Depreciation and amortization	108,000	114,000
Gain/(Loss) from continuing operations before taxes	$ (1,519,000)	$ (1,898,000)

8. Segment Reporting (Details_2

8. Segment Reporting (Details - Geographic information revenues) - USD ($) $ in Thousands	3 Months Ended
	Sep. 23, 2018	Sep. 24, 2017
Revenues	$ 2,991	$ 5,433
UNITED STATES [Member]
Revenues	2,896	5,355
Foreign countries [Member]
Revenues	$ 97	$ 78

3. Commitments and Contingenc_2

3. Commitments and Contingencies (Details Narrative) - shares	Apr. 22, 2009	Jun. 02, 2008	Mar. 23, 2007
Commitments and Contingencies Disclosure [Abstract]
Common stock shares may be repurchased	3,016,000	2,016,000	1,016,000

4. Stock-Based Compensation (_3

4. Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Sep. 23, 2018	Sep. 24, 2017
Stock-based compensation recognized	$ 101	$ 10
Restricted Stock Units (RSUs) [Member]
Stock-based compensation recognized	100
Unamortizied stock-based compensation expense	$ 500

5. Earnings per Share (EPS) (_2

5. Earnings per Share (EPS) (Details Narrative) - shares	3 Months Ended
	Sep. 23, 2018	Sep. 24, 2017
Earnings Per Share [Abstract]
Options To Purchase Shares Of Common Stock Excluded From Computation Of Diluted Shares	378,056	478,056

7. Income Taxes (Details Narrat

7. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Sep. 23, 2018	Sep. 24, 2017
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 50	$ 12
Federal statutory rate	21.00%
Deferred taxes	$ 22
State tax expense	28
Deferred tax assets	5,900
Reversal of portion of valuation allowance	$ 2,400