Indiana
|
35-1281154
|
(State
or other jurisdiction of organization)
|
(I.R.S.
Employer Identification No.)
|
6612
E. 75th Street, Suite 450
Indianapolis, Indiana
|
46250
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large Accelerated
Filer ____
Non-Accelerated
Filer ___
Emerging
Growth Company ____
|
Accelerated Filer
__
Smaller
Reporting Company X
|
Title of each class
|
Trading symbol(s)
|
Name of each exchange on which registered
|
N/A
|
N/A
|
N/A
|
Condensed
consolidated balance sheets as of December 31, 2018
and March 31, 2019
(unaudited)
|
Page 4
|
Condensed
consolidated statements of operations for the three-month
periods ended March 31, 2018 and 2019
(unaudited)
|
Page 5
|
Condensed
consolidated statements of changes in stockholders' equity
for
the three-month periods ended March 31, 2019 and March
31,
2018 (unaudited)
|
Page 6
|
Condensed
consolidated statements of cash flows for the three-month
periods ended March 31, 2018 and 2019
(unaudited)
|
Page 7
|
Notes to condensed consolidated financial
statements (unaudited)
|
Page 8
|
Assets
|
December
31,
2018
|
March
31,
2019
|
Current
assets:
|
|
|
Cash
|
$76,194
|
$145,791
|
Accounts
receivable - net
|
1,573,600
|
1,560,958
|
Inventories
|
962,783
|
929,698
|
Prepaid
expenses
|
688,259
|
720,515
|
Total
current assets
|
3,300,836
|
3,356,962
|
|
|
|
Property and
equipment:
|
|
|
Equipment
|
2,872,494
|
2,878,293
|
Leasehold
improvements
|
1,180,050
|
1,180,637
|
Construction
and equipment in progress
|
119,340
|
109,815
|
|
4,171,844
|
4,168,745
|
Less
accumulated depreciation and amortization
|
1,399,435
|
1,474,003
|
Net
property and equipment
|
2,772,449
|
2,694,742
|
Deferred tax
asset
|
4,817,309
|
4,666,910
|
Deferred contract
cost
|
698,935
|
698,935
|
Goodwill
|
278,466
|
278,466
|
Operating lease
right of use assets
|
-
|
4,475,106
|
Other assets
including long-term portion of receivables - net
|
3,808,957
|
4,050,439
|
Total
assets
|
$15,676,952
|
$20,221,560
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
Current
liabilities:
|
|
|
Current
portion of term loan payable to bank
|
$871,429
|
$871,429
|
Accounts
payable and accrued expenses
|
523,315
|
253,271
|
Current
portion of operating lease liability
|
-
|
312,739
|
Total
current liabilities
|
1,394,744
|
1,437,439
|
|
|
|
Long-term
obligations:
|
|
|
Term
loans payable to bank (net of current portion)
|
3,898,733
|
3,705,579
|
Convertible
notes payable
|
1,539,204
|
1,496,906
|
Operating
lease liabilities - net of short-term portion
|
-
|
4,263,420
|
Deferred
contract income
|
698,935
|
698,935
|
Total
long-term liabilities
|
6,136,872
|
10,164,840
|
|
|
|
Stockholders'
equity:
|
|
|
Common
stock – no par value (40,000,000 shares
authorized,
21,583,032
issued and outstanding as of December 31, 2018 and
21,683,032
as of March 31, 2019)
|
24,739,482
|
24,789,482
|
Accumulated
deficit
|
(16,594,146)
|
(16,170,201)
|
Total
stockholders' equity
|
8,145,336
|
8,619,281
|
Total
liabilities and stockholders’ equity
|
$15,676,952
|
$20,221,560
|
|
|
|
|
Three-Months
Ended
March
31,
|
|
|
2018
|
2019
|
Revenue:
|
|
|
Restaurant
revenue - company-owned Craft Pizza & Pub
|
$1,108,423
|
$1,142,614
|
Restaurant
revenue - company-owned non-traditional
|
288,116
|
170,502
|
Franchising
revenue - non-traditional
|
1,541,879
|
1,593,014
|
Administrative
fees and other
|
14,245
|
16,619
|
Total
revenue
|
2,952,663
|
2,922,749
|
|
|
|
Operating
expenses:
|
|
|
Restaurant
expenses - company-owned Craft Pizza & Pub
|
865,499
|
1,010,919
|
Restaurant
expenses - company-owned non-traditional
|
283,856
|
153,709
|
Franchising
expenses - non-traditional
|
649,096
|
494,712
|
Total
operating expenses
|
1,798,451
|
1,659,340
|
|
|
|
Depreciation and
amortization
|
72,503
|
93,600
|
General and
administrative expenses
|
382,280
|
416,248
|
Total
expenses
|
2,253,234
|
2,169,188
|
Operating
income
|
699,429
|
753,561
|
|
|
|
Interest
expense
|
160,288
|
126,903
|
Income
before income taxes
|
539,141
|
626,658
|
Income tax
expense
|
136,592
|
150,398
|
Net
income
|
$402,549
|
$476,260
|
|
|
|
Earnings
per share - basic
|
|
|
Net
income
|
$.02
|
$.02
|
Weighted average
number of common shares
outstanding
|
20,869,689
|
21,671,921
|
|
|
|
Diluted
earnings per share:
|
|
|
Net
income
|
$.02
|
$.02
|
Weighted average
number of common shares
outstanding
|
26,389,740
|
25,584,889
|
|
Common
Stock
Shares Amount
|
Accumulated
Deficit
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at December 31, 2018
|
21,583,032
|
$24,739,482
|
$(16,594,146)
|
$8,145,336
|
|
|
|
|
|
Adjustment
for the adoption of
ASU
2016-02 accounting for leases
|
|
|
(52,315)
|
(52,315)
|
|
|
|
|
|
Net
income for three months ended
March 31, 2019
|
|
|
476,260
|
476,260
|
|
|
|
|
|
Conversion
of convertible note
to
common stock
|
100,000
|
50,000
|
-
|
50,000
|
|
|
|
|
|
Balance
at March 31, 2019
|
21,683,032
|
$24,789,482
|
$(16,170,201)
|
$8,619,281
|
|
Common
Stock
Shares Amount
|
Accumulated
Deficit
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at December 31, 2017
|
20,783,032
|
$24,322,885
|
$(13,674,794)
|
$10,648,091
|
|
|
|
|
|
Remove
derivatives in accordance
with
ASU 2017-11
|
|
303,751
|
(160,893)
|
142,858
|
|
|
|
|
|
Net
income for three months ended
March 31, 2018
|
|
|
402,549
|
402,549
|
|
|
|
|
|
Conversion
of convertible note
to
common stock
|
200,000
|
100,000
|
-
|
100,000
|
|
|
|
|
|
Balance
at March 31, 2018
|
20,983,032
|
$24,726,636
|
$(13,433,138)
|
$11,293,498
|
|
Three Months Ended March 31,
|
|
OPERATING
ACTIVITIES
|
2018
|
2019
|
Net
income
|
$402,549
|
$476,260
|
Adjustments
to reconcile net loss to net cash
provided
by operating activities:
|
|
|
Depreciation
and amortization
|
106,781
|
126,005
|
Amortization
of lease cost in excess of cash paid in accordance
with
ASU 2016-02
|
-
|
11,897
|
Deferred income
taxes
|
136,592
|
150,398
|
Changes in
operating assets and liabilities:
|
|
|
(Increase) decrease
in:
|
|
|
Accounts
receivable
|
(6,067)
|
12,642
|
Inventories
|
(13,173)
|
13,085
|
Prepaid
expenses
|
(7,249)
|
(32,526)
|
Other assets
including long-term portion of receivables
|
34,755
|
(178,450)
|
Increase
(decrease) in:
|
|
|
Accounts payable
and accrued expenses
|
(119,926)
|
(275,967)
|
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
534,262
|
303,344
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
Purchase
of property and equipment
|
(605,705)
|
(15,890)
|
NET CASH USED IN
INVESTING ACTIVITIES
|
(605,705)
|
(15,890)
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
Payment
of principal on bank term loans
|
(160,714)
|
(217,857)
|
Payment
of additional closing costs
|
(13,717)
|
-
|
NET CASH USED BY
FINANCING ACTIVITIES
|
(174,431)
|
(217,857)
|
|
|
|
DISCONTINUED
OPERATIONS
Payment of
obligations from discontinued operations
|
(15,000)
|
-
|
|
|
|
Increase (decrease)
in cash
|
(260,874)
|
69,597
|
Cash at beginning
of period
|
461,068
|
76,194
|
Cash at end of
period
|
$200,194
|
$145,791
|
Supplemental
schedule of investing and financing activities
Cash paid for interest
|
$136,420
|
$135,123
|
|
Three Months
Ended March 31, 2018
|
||
|
Income
(Numerator)
|
Shares
(Denominator)
|
Per-Share
Amount
|
Net
income
|
$402,549
|
20,869,689
|
$.02
|
|
|
|
|
Effect
of dilutive securities
|
|
|
|
Options
and warrants
|
-
|
920,051
|
|
Convertible
notes
|
65,168
|
4,600,000
|
____
|
|
|
|
|
Diluted
earnings per share
|
|
|
|
Net income per
share with assumed conversions
|
$467,717
|
26,389,740
|
$.02
|
|
Three Months
Ended March 31, 2019
|
||
|
Income
(Numerator)
|
Shares
(Denominator)
|
Per-Share
Amount
|
Net
income
|
$476,260
|
21,671,921
|
$.02
|
|
|
|
|
Effect
of dilutive securities
|
|
|
|
Options
and warrants
|
-
|
1,857
|
|
Convertible
notes
|
48,750
|
3,911,111
|
____
|
|
|
|
|
Diluted
earnings per share
|
|
|
|
Net income per
share with assumed conversions
|
$525,010
|
25,584,889
|
$.02
|
Franchise
Format
|
Non-Traditional,
Except Hospitals
|
Hospitals
|
Craft
Pizza
&
Pub
|
Noble
Roman’s Pizza
|
$
7,500
|
$10,000
|
$30,000
(1)
|
Description
|
Three
Months ended March 31,
2018 2019
|
|||
Revenue
|
$1,108,423
|
100%
|
$1,142,614
|
100%
|
Cost
of sales
|
245,036
|
22.1
|
237,675
|
20.8
|
Salaries
and wages
|
349,124
|
31.5
|
365,981
|
32.0
|
Facility
cost including rent, common area and utilities
|
174,835
|
15.8
|
200,607
|
17.6
|
Packaging
|
28,970
|
2.6
|
41,318
|
3.6
|
All
other operating expenses
|
67,534
|
6.1
|
165,338
|
14.5
|
Total
expenses
|
865,499
|
78.1
|
1,010,919
|
88.5
|
Margin
contribution
|
$242,924
|
21.9%
|
$131,695
|
11.5%
|
Description
|
Three
Months ended March 31,
2018 2019
|
|||
Royalties
and fees non-traditional franchising
|
$1,108,658
|
71.9%
|
$1,287,178
|
80.8%
|
Royalties
and fees non-traditional grocery
|
433,221
|
28.1
|
305,836
|
19.2
|
Total
non-traditional revenue
|
1,541,879
|
100.0
|
1,593,014
|
100.0
|
Salaries
and wages
|
267,968
|
17.4
|
195,626
|
12.3
|
Trade
show expense
|
120,772
|
7.8
|
105,094
|
6.6
|
Insurance
|
74,749
|
4.8
|
109,924
|
6.9
|
Travel
and auto
|
47,833
|
3.1
|
27,549
|
1.7
|
All
other operating expenses
|
137,774
|
8.9
|
56,519
|
3.5
|
Total
expenses
|
649,096
|
42.0
|
494,712
|
31.0
|
Margin
contribution
|
$892,783
|
58.0%
|
$1,098,302
|
69.0%
|
Description
|
Three Months ended March
31,
2018 2019
|
|||
Revenue
|
$288,116
|
100%
|
$170,502
|
100%
|
Cost
of sales
|
98,765
|
34.3
|
63,947
|
37.5
|
Salaries
and wages
|
121,688
|
42.2
|
53,791
|
31.5
|
Rent
|
28,999
|
10.1
|
16,165
|
9.5
|
Packaging
|
9,200
|
3.2
|
4,879
|
2.9
|
All
other operating expenses
|
25,204
|
8.7
|
14,927
|
8.7
|
Total
expenses
|
283,856
|
98.5
|
153,709
|
90.1
|
Margin
contribution
|
$4,260
|
1.5%
|
$16,793
|
9.9%
|
3.1
|
Amended
Articles of Incorporation of the Registrant, filed as an exhibit to
the Registrant’s Amendment No. 1 to the Post-Effective
Amendment No. 2 to Registration Statement on Form S-1 filed July 1,
1985 (SEC File No.2-84150), is incorporated herein by
reference.
|
Amended
and Restated By-Laws of the Registrant, as currently in effect,
filed as an exhibit to the Registrant’s Form 8-K filed
December 23, 2009, is incorporated herein by
reference.
|
|
3.3
|
Articles
of Amendment of the Articles of Incorporation of the Registrant
effective February 18, 1992 filed as an exhibit to the
Registrant’s Registration Statement on Form SB-2 (SEC File
No. 33-66850), ordered effective on October 26, 1993, is
incorporated herein by reference.
|
Articles
of Amendment of the Articles of Incorporation of the Registrant
effective May 11, 2000, filed as Annex A and Annex B to the
Registrant’s Proxy Statement on Schedule 14A filed March 28,
2000, is incorporated herein by reference.
|
|
Articles
of Amendment of the Articles of Incorporation of the Registrant
effective April 16, 2001 filed as Exhibit 3.4 to Registrant’s
annual report on Form 10-K for the year ended December 31, 2005, is
incorporated herein by reference.
|
|
Articles
of Amendment of the Articles of Incorporation of the Registrant
effective August 23, 2005, filed as Exhibit 3.1 to the
Registrant’s current report on Form 8-K filed August 29,
2005, is incorporated herein by reference.
|
|
3.7
|
Articles
of Amendment of the Articles of Incorporation of the Registrant
effective February 7, 2017, filed as Exhibit 3.7 to the
Registrant’s Registration Statement on Form S-1 (SEC File No.
33-217442) filed April 25, 2017, is incorporated herein by
reference.
|
4.1
|
Specimen
Common Stock Certificates filed as an exhibit to the
Registrant’s Registration Statement on Form S-18 filed
October 22, 1982 and ordered effective on December 14, 1982 (SEC
File No. 2-79963C), is incorporated herein by
reference.
|
Warrant
to purchase common stock, dated July 1, 2015, filed as Exhibit
10.11 to the Registrant’s Form 10-Q filed on August 11, 2015,
is incorporated herein by reference.
|
|
Employment
Agreement with Paul W. Mobley dated January 2, 1999 filed as
Exhibit 10.1 to Registrant’s annual report on Form 10-K for
the year ended December 31, 2005, is incorporated herein by
reference.
|
|
Employment
Agreement with A. Scott Mobley dated January 2, 1999 filed as
Exhibit 10.2 to Registrant’s annual report on Form 10-K for
the year ended December 31, 2005, is incorporated herein by
reference.
|
|
Loan
Agreement dated as of September 13, 2017 by and between the
Registrant and First Financial, filed as Exhibit 10.1 to the
Registrant's Form 8-K filed September 19, 2017, is incorporated
herein by reference.
|
|
Term
note dated September 13, 2017 to First Financial Bank filed as
Exhibit 10.4 to the Registrant's Form 10-Q filed November 14, 2017,
is incorporated herein by reference.
|
|
Development
line note dated September 13, 2017 to First Financial Bank filed as
Exhibit 10.5 to the Registrant's Form 10-Q filed November 14, 2017,
is incorporated herein by reference.
|
|
Agreement
dated April 8, 2015, by and among the Registrant and the
shareholder parties, filed as Exhibit 10.1 to Registrant’s
Form 8-K filed on April 8, 2015, is incorporated herein by
reference.
|
|
Form of
10% Convertible Subordinated Unsecured note filed as Exhibit 10.16
to the Registrant's Form 10-K filed on March 27, 2017, is
incorporated herein by reference.
|
|
Form of
Redeemable Common Stock Purchase Class A Warrant filed as Exhibit
10.21 to the Registrant's Registration Statement on Form S-1 (SEC
File No. 33-217442) on April 25, 2017, is incorporated herein by
reference.
|
|
Registration
Rights Agreement dated October 13, 2016, by and among the
Registrant and the investors signatory thereto, filed as Exhibit
10.22 to the Registrant's Registration Statement on Form S-1 (SEC
File No. 33-217442) on April 25, 2017, is incorporated herein by
reference.
|
|
|
First
Amendment to the Registration Rights Agreement dated February 13,
2017, by and among the Registrant and the investors signatory
thereto, filed as Exhibit 10.23 to the Registrant's Registration
Statement on Form S-1 (SEC File No. 33-217442) on April 25, 2017,
is incorporated herein by reference
|
21.1
|
Subsidiaries
of the Registrant filed in the Registrant’s Registration
Statement on Form SB-2 (SEC File No. 33-66850) ordered effective on
October 26, 1993, is incorporated herein by reference.
|
|
NOBLE ROMAN'S, INC.
|
|
|
|
|
|
|
Date: May 15,
2019
|
By:
|
/s/ Paul W.
Mobley
|
|
|
|
Paul W.
Mobley
|
|
|
|
Executive Chairman,
Chief Financial Officer and Principal Accounting Officer
(Authorized officer and Principal Financial
Officer) |
|
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
May 13, 2019 |
|
Document And Entity Information | ||
Entity Registrant Name | NOBLE ROMANS INC | |
Entity Central Index Key | 0000709005 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 21,683,032 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Stockholders' equity: | ||
Common stock, par value | $ .00 | $ .00 |
Common stock, authorized shares | 40,000,000 | 40,000,000 |
Common stock, issued shares | 21,683,032 | 21,583,032 |
Common stock, outstanding shares | 21,683,032 | 21,583,032 |
1. Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. Basis of Presentation | The accompanying unaudited interim condensed consolidated financial statements, included herein, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated statements have been prepared in accordance with the Company’s accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and should be read in conjunction with the audited consolidated financial statements and the notes thereto included in that report. Unless the context indicates otherwise, references to the “Company” mean Noble Roman’s, Inc. and its subsidiaries.
Significant Accounting Policies
There have been no significant changes in the Company's accounting policies form those disclosed in its Annual Report on Form 10-K except for those policies described below in relation to the adoption of Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842).
The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use assets ("ROU"), and lease liability obligations are included in the Company's balance sheets. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liability obligations represent its obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company's leases typically do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company uses the implicit rate when readily determinable. The ROU asset also includes in the lease payments made excludes lease incentives and lease direct costs. The Company's lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.
In the opinion of the management of the Company, the information contained herein reflects all adjustments necessary for a fair presentation of the results of operations and cash flows for the interim periods presented and the financial condition as of the dates indicated, which adjustments are of a normal recurring nature. The results for the three-month period ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year ending December 31, 2019.
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2. Royalties and Fees |
3 Months Ended |
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Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
2. Royalties and Fees | Royalties and fees included initial franchise fees of $69,500 for the three-month period ended March 31, 2018, and $94,500 for the three-month period ended March 31, 2019. Royalties and fees included equipment commissions of $24,500 for the three-month period ended March 31, 2018, and $20,000 for the three-month period ended March 31, 2019. Royalties and fees, less amortized initial franchise fees and equipment commissions, were $1.4 million for the three-month period ended March 31, 2018, and $1.5 million for the three-month period ended March 31, 2019. Most of the cost for the services required to be performed by the Company are incurred prior to the franchise fee income being recorded, which is based on a contractual liability of the franchisee.
In accordance with (ASU) 2014-09, the Company adopted revenue and expense recognition as described in ASU 2014-09 effective January 2018. Initial franchise fees and related contract costs are deferred and amortized on a straight-line basis over the term of the franchise agreement, generally five to 10 years.
The effect to comparable periods within the financial statements is not material as the initial franchise fee for the non-traditional franchise is intended to defray the initial contract costs, and the franchisee fees and contract costs initially incurred and paid approximate the relative amortized franchise fees and contract costs for those same periods.
The deferred contract income and costs both approximated $699,000 on March 31, 2019.
At December 31, 2018 and March 31, 2019, the Company reported net accounts receivable from franchisees of $4.4 million and $4.6 million, respectively, which were both net of allowances of $4.3 million.
There were 2,894 franchises/licenses in operation on December 31, 2018 and 2,899 franchises/licenses in operation on March 31, 2019. During the three-month period ended March 31, 2019, there were eight new outlets opened and three outlets closed. In the ordinary course, grocery stores from time to time add our licensed products, remove them and may subsequently re-offer them. Therefore, it is unknown how many of the 2,263 licensed grocery store units included in the counts above have left the system.
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3. Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3. Earnings per Share | The following table sets forth the calculation of basic and diluted earnings per share for the three-month period ended March 31, 2018:
The following table sets forth the calculation of basic and diluted earnings per share for the three-month period ended March 31, 2019:
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4. Other Assets |
3 Months Ended |
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Mar. 31, 2019 | |
Other Assets [Abstract] | |
4. Other Assets | Other assets as of March 31, 2019, include security deposits of $13,600, cash surrender value of life insurance in the amount of $199,000, long-term franchisee receivables in the amount of $3.7 million which is net after a $4.0 million valuation allowance.
Long-term receivable from franchisees represent receivables from approximately 80 different non-traditional franchisees (Noble Roman’s franchises located within a host facility). These receivables originated from a variety of circumstances, including where audits of a number of the non-traditional franchises’ reporting of sales found them to be underreporting their sales and, therefore, underpaying their royalty obligations. In other instances, some franchisees were selling non-Noble Roman’s products under the Noble Roman’s trademark. In addition, some receivables arose from the Company incurring legal fees to enforce the franchise agreements and other collection costs totaling approximately $2.4 million which adds to the receivables in accordance with the agreements and some of the receivables were generated by early termination of the franchise agreements. These receivables have been classified as long-term since collections are expected to extend over more than a one-year cycle.
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5. Subsequent Events |
3 Months Ended |
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Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
5. Subsequent Events | The Company evaluated subsequent events through the date the financial statements were issued and filed with SEC. There were no subsequent events that required recognition or disclosure beyond what is disclosed in this report.
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3. Earnings per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share |
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3. Earnings Per Share (Details) - USD ($) |
3 Months Ended | |
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Mar. 31, 2019 |
Mar. 31, 2018 |
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Net income | $ 476,260 | $ 402,549 |
Net income per share with assumed conversions | $ 525,010 | $ 467,717 |
Weighted average number of common shares outstanding, basic | 21,671,921 | 20,869,689 |
Weighted average number of common shares outstanding, diluted | 25,584,889 | 26,389,740 |
Earnings per share, basic | $ 0.02 | $ 0.02 |
Earnings per share, diluted | $ 0.02 | $ 0.02 |
Options and Warrants | ||
Effect of dilutive securities | $ 0 | $ 0 |
Effect of dilutive securities | 1,857 | 920,051 |
Convertible Notes | ||
Effect of dilutive securities | $ 48,750 | $ 65,168 |
Effect of dilutive securities | 3,911,111 | 4,600,000 |
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