Indiana
|
35-1281154
|
(State
or other jurisdiction
of incorporation or organization)
|
(I.R.S.
Employer
Identification No.)
|
Title
of each class
|
Trading
Symbol(s)
|
Name of
each exchange on which registered
|
N/A
|
|
|
Item
|
Page
|
|
3
|
||
6
|
||
9
|
||
9
|
||
10
|
||
10
|
||
|
|
|
|
|
|
11
|
||
12
|
||
13
|
||
19
|
||
20
|
||
35
|
||
35
|
||
35
|
||
|
|
|
|
|
|
36
|
||
37
|
||
39
|
||
40
|
||
41
|
||
|
||
42
|
||
43
|
|
Non-Traditional
Except Hospitals
|
Non-Traditional
Hospitals
|
Traditional
Stand-Alone
|
Noble Roman’s
Pizza or Craft Pizza & Pub
|
$7,500
|
$10,000
|
$30,000(1)
|
Plan
Category
|
Number of
Securities to be issued upon exercise of outstanding options,
warrants and rights
(a)
|
Weighted-average
exercise price of outstanding options, warrants and
rights
(b)
|
Number of
securities remaining available for future issuance under equity
compensation plans (excluding securities reflected in column
(a))
(c)
|
Equity compensation
plans approved by stockholders
|
-
|
$-
|
-
|
Equity compensation
plans not approved by stockholders
|
4,421,667
|
$.63
|
(1)
|
Total
|
4,421,667
|
$.63
|
(1)
|
Year Ended December
31,
|
|||||
2016
|
2017
|
2018
|
2019
|
2020
|
|
Royalties and
fees
|
$7,351
|
$6,798
|
$6,422
|
$6,163
|
$4,841
|
Administrative fees
and other
|
42
|
45
|
53
|
38
|
15
|
Restaurant revenue
- Craft Pizza & Pub
|
-
|
1,821
|
4,816
|
4,830
|
6,209
|
Restaurant revenue
- non-traditional
|
443
|
1,174
|
1,157
|
674
|
471
|
Total
revenue
|
7,836
|
9,838
|
12,448
|
11,705
|
11,536
|
Franchising
operating expenses
|
2,549
|
2,443
|
2,628
|
2,092
|
1,737
|
Restaurant expenses
- Craft Pizza & Pub (1)
|
-
|
1,389
|
3,909
|
4,250
|
4,938
|
Restaurant expenses
- non-traditional
|
443
|
1,155
|
1,145
|
626
|
447
|
Depreciation and
amortization (2)
|
125
|
241
|
440
|
383
|
383
|
General and
administrative (1) (2)
|
1,642
|
1,666
|
1,669
|
1,739
|
1,717
|
Operating
income
|
3,077
|
2,944
|
2,657
|
2,614
|
2,314
|
Interest
|
615
|
1,474
|
655
|
775
|
1,914
|
Loss on restaurant
discontinued
|
37
|
-
|
-
|
-
|
-
|
Change in fair
value of derivatives
|
44
|
175
|
-
|
-
|
-
|
Adjust valuation of
receivables
|
1,104
|
440
|
4,096
|
1,300
|
4,942
|
Income (loss)
before income taxes from continuing
operations
|
1,277
|
855
|
(2,094)
|
539
|
(4,542)
|
Income taxes
(3)
|
488
|
4,147
|
930
|
917
|
840
|
Net
income (loss) from continuing operations
|
789
|
(3,292)
|
(3,024)
|
(378)
|
(5,382)
|
Loss from
discontinued operations
|
(1,660)
|
(93)
|
(38)
|
-
|
-
|
Net
loss
|
$(871)
|
$(3,385)
|
$(3,062)
|
$(378)
|
$(5,382)
|
Weighted average
number of common shares
|
20,782
|
20,783
|
21,250
|
22,053
|
22,216
|
Net
loss per share from continuing
operations
|
$(.04)
|
$(.16)
|
$(.14)
|
$(.02)
|
$(.24)
|
Net
loss per share
|
(.04)
|
(.16)
|
(.14)
|
(.02)
|
(.24)
|
Balance
Sheet Data:
|
2016
|
2017
|
2018
|
2019
|
2020
|
Working
capital
|
$2,429
|
$2,289
|
$1,906
|
$926
|
$2,070
|
Total
assets
|
19,899
|
18,885
|
15,677
|
19,105
|
18,417
|
Long-term
obligations, net of current portion
|
3,755
|
6,808
|
6,137
|
9,335
|
14,770
|
Stockholders’
equity
|
$14,018
|
$10,648
|
$8,145
|
$7,834
|
$2,357
|
|
Years Ended December
31,
|
||
|
2018
|
2019
|
2020
|
Revenue:
|
|
|
|
Restaurant
revenue - company-owned restaurants
|
$4,815,842
|
$4,830,199
|
$6,209,279
|
Restaurant
revenue - company-owned non-traditional
|
1,156,347
|
673,647
|
470,846
|
Franchising
revenue
|
6,422,315
|
6,162,576
|
4,841,229
|
Administrative
fees and other
|
53,443
|
38,202
|
14,310
|
Total
revenue
|
12,447,947
|
11,704,624
|
11,535,664
|
|
|
|
|
Operating
expenses:
|
|
|
|
Restaurant
expenses - company-owned restaurants
|
3,909,142
|
4,250,406
|
4,938,133
|
Restaurant
expenses - company-owned non-traditional
|
1,145,106
|
626,453
|
447,040
|
Franchising
expenses
|
2,627,745
|
2,092,001
|
1,736,870
|
Total
operating expenses
|
7,681,993
|
6,968,860
|
7,122,043
|
|
|
|
|
Depreciation and
amortization
|
440,240
|
382,793
|
382,368
|
General and
administrative expenses
|
1,668,718
|
1,739,383
|
1,717,209
|
Total
expenses
|
9,790,951
|
9,091,036
|
9,221,620
|
Operating
income
|
2,656,996
|
2,613,588
|
2,314,044
|
|
|
|
|
Interest
expense
|
655,203
|
774,565
|
1,914,344
|
Adjust valuation of
receivables
|
4,095,805
|
1,300,000
|
4,941,718
|
Income
(loss) before income taxes
|
(2,094,012)
|
539,023
|
(4,542,018)
|
Income tax
expense
|
930,397
|
917,088
|
839,928
|
Net
loss
|
$(3,024,409)
|
$(378,065)
|
$(5,381,946)
|
|
Quarter Ended December
31,
|
|
|
2019
|
2020
|
Revenue:
|
|
|
Restaurant
revenue – company-owned restaurants
|
$1,136,277
|
$2,126,214
|
Restaurant
revenue - company-owned non-traditional
|
173,703
|
105,474
|
Franchising
revenue
|
1,267,403
|
1,033,103
|
Administrative
fees and other
|
4,413
|
3,119
|
Total
revenue
|
2,581,796
|
3,267,910
|
|
|
|
Operating
expenses:
|
|
|
Restaurant
expenses - company-owned restaurants
|
1,040,697
|
1,785,010
|
Restaurant
expenses - company-owned non-traditional
|
161,983
|
108,880
|
Franchising
expenses
|
543,446
|
496,491
|
Total
operating expenses
|
1,746,126
|
2,390,381
|
|
|
|
Depreciation and
amortization
|
145,875
|
119,863
|
General and
administrative expenses
|
465,423
|
463,023
|
Total
expenses
|
2,357,424
|
2,973,267
|
Operating
income
|
224,372
|
294,643
|
|
|
|
Interest
expense
|
207,720
|
337,059
|
Adjust valuation of
receivables
|
1,300,000
|
4,941,718
|
Loss
before income taxes
|
(1,283,348)
|
(4,984,134)
|
Income tax
expense
|
479,719
|
921,911
|
Net
loss
|
$(1,763,067)
|
$(5,906,045)
|
|
Three Months ended
December 31,
|
Year-Ended December
31,
|
||||||
Description
|
2019
|
2020
|
2019
|
2020
|
||||
Revenue
|
$1,136,276
|
100%
|
$2,126,214
|
100%
|
$4,830,199
|
100%
|
$6,209,279
|
100%
|
Cost of
sales
|
253,858
|
22.3
|
476,772
|
22.4
|
1,031,504
|
21.4
|
1,348,084
|
21.7
|
Salaries and
wages
|
341,431
|
30.0
|
583,000
|
27.4
|
1,448,246
|
30.0
|
1,354,795
|
21.8
|
Facility cost
including rent, common area and utilities
|
184,623
|
16.2
|
289,845
|
13.6
|
832,123
|
17.2
|
947,571
|
15.3
|
Packaging
|
31,469
|
2.8
|
58,792
|
2.8
|
130,708
|
2.7
|
176,267
|
2.8
|
All other operating
expenses
|
207,819
|
18.3
|
376,600
|
17.7
|
807,825
|
16.7
|
1,111,416
|
17.9
|
Total
expenses
|
1,019,200
|
89.7
|
1,785,009
|
84.0
|
4,250,406
|
88.0
|
4,938,133
|
79.5
|
Margin
contribution
|
$117,076
|
10.3%
|
$341,205
|
16.0%
|
$579,793
|
12.0%
|
$1,271,146
|
20.5%
|
|
Three Months ended
December 31,
|
Year Ended December
31,
|
||||||
Description
|
2019
|
2020
|
2019
|
2020
|
||||
Royalties and fees
franchising
|
$966,145
|
76.2%
|
$845,509
|
81.8%
|
$5,026,305
|
81.6%
|
$4,102,304
|
84.7%
|
Royalties and fees
grocery
|
301,258
|
23.8
|
187,494
|
18.2
|
1,136,271
|
18.4
|
738,925
|
15.3
|
Total royalties and
fees
|
1,267,403
|
100.0
|
1,033,003
|
100%
|
6,162,576
|
100.0
|
4,841,229
|
100%
|
Salaries and
wages
|
199,839
|
15.8
|
205,631
|
19.9
|
751,961
|
12.2
|
625,954
|
12.9
|
Trade show
expense
|
105,000
|
8.3
|
105,000
|
10.2
|
420,000
|
6.8
|
420,000
|
8.7
|
Travel and
auto
|
25,745
|
2.0
|
16,348
|
1.6
|
108,375
|
1.8
|
86,323
|
1.8
|
All other op.
expenses
|
212,862
|
16.8
|
169,512
|
16.4
|
811,665
|
13.2
|
604,592
|
12.5
|
Total
expenses
|
543,446
|
42.9
|
496,491
|
48.1
|
2,092,001
|
33.9
|
1,736,869
|
35.9
|
Margin
contribution
|
$723,957
|
57.1%
|
$536,512
|
51.9%
|
$4,070,575
|
66.1%
|
$3,104,359
|
64.1%
|
Description
|
Three Months ended
December 31,
|
Year Ended December
31,
|
||||||
|
2019
|
2020
|
2019
|
2020
|
||||
Revenue
|
$173,703
|
100%
|
$105,474
|
100%
|
$673,647
|
100%
|
$470,846
|
100%
|
Total
expenses
|
161,982
|
93.3
|
108,880
|
103.2
|
626,453
|
93.0
|
447,040
|
94.9
|
Margin
contribution
|
$11,721
|
6.7%
|
$(3,406)
|
(3.2)%
|
$47,194
|
7.0%
|
$23,806
|
5.1%
|
|
|
Less
than
|
|
|
More
than
|
|
Total
|
1
Year
|
1-3
Years
|
3-5
Years
|
5
Years
|
Long-term debt
(1)
|
$8,625,000
|
$-
|
$991,667
|
$7,633,333
|
$-
|
Operating
leases
|
8,234,626
|
967,406
|
3,026,966
|
2,089,083
|
2,151,171
|
Total
|
$16,859,626
|
$967,406
|
$4,018,633
|
$9,722,416
|
$2,151,171
|
|
December
31,
|
|
Assets
|
2019
|
2020
|
Current
assets:
|
|
|
Cash
|
$218,132
|
$1,194,363
|
Accounts
receivable - net
|
978,408
|
879,502
|
Inventories
|
880,660
|
890,556
|
Prepaid
expenses
|
784,650
|
395,918
|
Total
current assets
|
2,861,850
|
3,360,339
|
|
|
|
Property and
equipment:
|
|
|
Equipment
|
2,899,611
|
3,708,689
|
Leasehold
improvements
|
1,187,100
|
2,319,445
|
Construction
and equipment in progress
|
374,525
|
510,225
|
|
4,461,236
|
6,538,359
|
Less
accumulated depreciation and amortization
|
1,689,520
|
1,989,209
|
Net
property and equipment
|
2,771,716
|
4,549,150
|
Deferred tax
asset
|
3,900,221
|
3,104,904
|
Deferred contract
costs
|
817,763
|
834,018
|
Goodwill
|
278,466
|
278,466
|
Operating lease
right of use assets
|
4,242,416
|
6,088,101
|
Other assets
including long-term portion of accounts receivable -
net
|
4,232,655
|
201,962
|
Total
assets
|
$19,105,087
|
$18,416,940
|
Liabilities
and Stockholders’ Equity
|
|
|
Current
liabilities:
|
|
|
Current
portion of term loan payable to bank
|
$871,429
|
$-
|
Accounts
payable and accrued expenses
|
731,059
|
878,099
|
Current
portion of operating lease liability
|
333,763
|
412,005
|
Total
current liabilities
|
1,936,251
|
1,290,104
|
|
|
|
Long-term
obligations:
|
|
|
Term
loans payable to bank (net of current portion)
|
2,999,275
|
-
|
Loan
payable to Corbel
|
-
|
7,468,709
|
Corbel
warrant value
|
-
|
29,037
|
Convertible
notes payable
|
1,501,282
|
574,479
|
Operating
lease liabilities – net of current portion
|
4,016,728
|
5,863,615
|
Deferred
contract income
|
817,763
|
834,018
|
Total
long-term liabilities
|
9,335,048
|
14,769,858
|
|
|
|
Stockholders’
equity:
|
|
|
Common
stock – no par value (40,000,000 shares authorized,
22,215,512
issued
and outstanding as of December 31, 2019 and December 31,
2020)
|
24,858,311
|
24,763,447
|
Accumulated
deficit
|
(17,024,523)
|
(22,406,469)
|
Total
stockholders’ equity
|
7,833,788
|
2,356,978
|
Total
liabilities and stockholders’ equity
|
$19,105,087
|
$18,416,940
|
|
Year Ended December
31,
|
||
|
2018
|
2019
|
2020
|
Restaurant revenue
- company-owned restaurants
|
$4,815,842
|
$4,830,199
|
$6,209,279
|
Restaurant revenue
- company-owned non-traditional
|
1,156,347
|
673,647
|
470,846
|
Franchising
revenue
|
6,422,315
|
6,162,576
|
4,841,229
|
Administrative fees
and other
|
53,443
|
38,202
|
14,310
|
Total
revenue
|
12,447,947
|
11,704,624
|
11,535,664
|
|
|
|
|
Operating
expenses:
|
|
|
|
Restaurant
expenses - company-owned restaurants
|
3,909,142
|
4,250,406
|
4,938,133
|
Restaurant
expenses - company-owned non-traditional
|
1,145,106
|
626,453
|
447,040
|
Franchising
expenses
|
2,627,745
|
2,092,001
|
1,736,870
|
Total
operating expenses
|
7,681,993
|
6,968,860
|
7,122,043
|
|
|
|
|
Depreciation and
amortization
|
440,240
|
382,793
|
382,368
|
General and
administrative
|
1,668,718
|
1,739,383
|
1,717,209
|
Total
expenses
|
9,790,951
|
9,091,036
|
9,221,620
|
Operating
income
|
2,656,996
|
2,613,588
|
2,314,044
|
|
|
|
|
Interest
expense
|
655,203
|
774,565
|
1,914,344
|
Adjust valuation of
receivables
|
4,095,805
|
1,300,000
|
4,941,718
|
Net
(loss) income before income taxes
|
(2,094,012)
|
539,023
|
(4,542,018)
|
Income tax
expense
|
930,397
|
917,088
|
839,928
|
Net
loss from continuing operations
|
$(3,024,409)
|
(378,065)
|
(5,381,946)
|
Loss from
discontinued operations net of tax
benefit
of $12,200 for 2018
|
(37,800)
|
-
|
-
|
Net
loss
|
$(3,062,209)
|
$(378,065)
|
$(5,381,946)
|
|
|
|
|
Loss per share -
basic:
|
|
|
|
Net loss from
continuing operations
|
$(.14)
|
$(.02)
|
$(.24)
|
Net
loss
|
$(.14)
|
$(.02)
|
$(.24)
|
Weighted average
number of common shares
outstanding
|
21,249,607
|
22,052,859
|
22,215,512
|
|
|
|
|
Diluted loss per
share:
|
|
|
|
Net
loss from continuing operations (1)
|
$(.14)
|
$(.02)
|
$(.24)
|
Net
loss (1)
|
$(.14)
|
$(.02)
|
$(.24)
|
Weighted average
number of common shares
outstanding
|
26,094,292
|
23,315,695
|
23,465,512
|
|
Shares
|
Amount
|
Deficit
|
Total
|
Balance
at December 31, 2017
|
20,983,131
|
$24,322,885
|
$(13,674,794)
|
$10,648,091
|
2018 net
loss
|
|
|
(3,062,209)
|
(3,062,209)
|
|
|
|
|
|
Remove derivatives
in accordance
with
ASU 2017-11
|
|
|
142,857
|
142,857
|
Amortization of
value of
stock
options
|
|
16,597
|
|
16,597
|
Conversion of
convertible notes
to
common stock
|
800,000
|
400,000
|
|
400,000
|
|
|
|
|
|
Balance
at December 31, 2018
|
21,783,131
|
$24,739,482
|
$(16,594,146)
|
$8,145,336
|
2019 net
loss
|
|
|
(378,065)
|
(378,065)
|
Adjustment for the
adoption of
ASU
2016-02 accounting for leases
|
|
|
(52,312)
|
(52,312)
|
Amortization of
value of
stock
options
|
|
18,829
|
|
18,829
|
Cashless exercise
of warrants
|
232,381
|
|
|
|
Conversion of
convertible notes
to
common stock
|
200,000
|
100,000
|
________
|
100,000
|
|
|
|
|
|
Balance
at December 31, 2019
|
22,215,512
|
$24,858,311
|
$(17,024,523)
|
$7,833,788
|
2020 net
loss
|
|
|
(5,381,946)
|
(5,381,946)
|
Write-off
unamortized closing
to
sub-debt that was converted
|
|
(116,400)
|
|
(116,400)
|
Amortization of
value of
stock
options
|
-
|
21,536
|
-
|
21,536
|
|
|
|
|
|
Balance
at December 31, 2020
|
22,215,512
|
$24,763,447
|
$(22,406,469)
|
$2,356,978
|
|
Year ended December
31,
|
||
OPERATING
ACTIVITIES
|
2018
|
2019
|
2020
|
Net
loss
|
$(3,062,209)
|
$(378,065)
|
$(5,381,946)
|
Adjustments
to reconcile net loss to net cash
provided
(used) by operating activities:
|
|
|
|
Depreciation
and amortization
|
558,277
|
469,804
|
1,433,295
|
Amortization
of lease cost in excess of cash paid
|
-
|
134,545
|
46,994
|
Deferred
income taxes
|
918,195
|
917,088
|
839,928
|
Changes
in operating assets and liabilities
|
|
|
|
(Increase)
decrease in:
|
|
|
|
Accounts
receivable
|
223,157
|
(377,151)
|
(98,388)
|
Inventories
|
(106,539)
|
82,123
|
(9,896)
|
Prepaid
expenses
|
(7,933)
|
(96,392)
|
189,884
|
Other
assets including long-term portion of accounts
receivable
|
3,059,197
|
548,648
|
4,508,836
|
Increase
(decrease) in:
|
|
|
|
Accounts
payable and accrued expenses
|
(101,286)
|
207,745
|
147,040
|
NET
CASH PROVIDED BY OPERATING
ACTIVITIES
|
1,480,859
|
1,508,345
|
1,675,747
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
Purchase
of property and equipment
|
(1,161,168)
|
(289,351)
|
(2,084,710)
|
NET
CASH USED BY INVESTING ACTIVITIES
|
(1,161,168)
|
(289,351)
|
(2,084,710)
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
Payment
of principal on First Financial Bank loan
|
(812,292)
|
(998,271)
|
(4,379,024)
|
Payment
of principal on convertible notes
|
-
|
-
|
(1,275,000)
|
Net
proceeds from new financings net of closing costs
|
157,727
|
-
|
7,039,218
|
Lease
liabilities
|
-
|
(78,785)
|
-
|
|
|
|
|
NET
CASH (USED) PROVIDED BY FINANCING
ACTIVITIES
|
(654,565)
|
(1,077,056)
|
1,385,194
|
|
|
|
|
DISCONTINUED
OPERATIONS
|
|
|
|
Payment
of obligations from discontinued operations
|
(50,000)
|
-
|
-
|
|
|
|
|
Increase (decrease)
in cash
|
(384,874)
|
141,938
|
976,231
|
Cash at beginning
of year
|
461,068
|
76,194
|
218,132
|
Cash at end of
year
|
$76,194
|
$218,132
|
$1,194,363
|
|
Income
(Numerator)
|
Shares
(Denominator)
|
Per
Share
Amount
|
Net
loss per share - basic
|
|
|
|
Net
loss
|
$(3,062,209)
|
21,249,607
|
$(.14)
|
Effect
of dilutive securities
|
|
|
|
Options
|
-
|
511,260
|
|
Convertible
Notes
|
213,125
|
4,333,425
|
|
Diluted
net loss per share
|
|
|
|
Net loss
(1)
|
$(2,849,084)
|
26,094,292
|
$(.14)
|
|
Income
(Numerator)
|
Shares
(Denominator)
|
Per
Share
Amount
|
Net
loss per share - basic
|
|
|
|
Net
loss
|
$(378,605)
|
22,052,859
|
$(.02)
|
Effect
of dilutive securities
|
|
|
|
Options
|
-
|
12,836
|
|
Convertible
Notes
|
62,500
|
1,250,000
|
|
Diluted
net loss per share
|
|
|
|
Net loss
(1)
|
$(316,105)
|
23,315,695
|
$(.02)
|
|
Income
(Numerator)
|
Shares
(Denominator)
|
Per
Share
Amount
|
Net
loss per share - basic
|
|
|
|
Net
loss
|
$(5,381,946)
|
22,215,512
|
$(.24)
|
Effect
of dilutive securities
|
|
|
|
Options
|
-
|
-
|
|
Convertible
Notes
|
62,500
|
1,250,000
|
|
Diluted
net loss per share
|
|
|
|
Net loss
(1)
|
$(5,319,446)
|
23,465,512
|
$(.24)
|
Principal
Due
|
$8,192,365
|
Unamortized
Loan Closing Cost
|
(723,656)
|
Carrying
Value
|
$7,468,709
|
Face
Value
|
$625,000
|
Unamortized
OID
|
(50,521)
|
Carrying
Value
|
$574,479
|
# Common
Shares
Issuable
|
Exercise
Price
|
46,500
|
$0.58
|
155,000
|
0.58
|
1,400,000
|
0.58
|
31,000
|
0.58
|
123,667
|
0.58
|
207,500
|
1.00
|
232,500
|
1.00
|
287,500
|
1.00
|
280,000
|
0.53
|
35,000
|
0.50
|
372,500
|
0.51
|
332,500
|
0.623
|
474,500
|
0.60
|
443,500
|
0.40
|
Expected
volatility
|
20%
|
Expected dividend
yield
|
None
|
Expected term (in
years)
|
3
|
Risk-free interest
rate
|
1.68 to
2.82%
|
Balance of employee
stock options outstanding as of 12/31/17
|
3,334,167
|
Stock
options granted during the year ended 12/31/18
|
415,000
|
Stock
options exercised during the year ended 12/31/18
|
0
|
Stock
options forfeited during the year ended 12/31/18
|
(105,500)
|
Balance of employee
stock options outstanding as of 12/31/18
|
3,643,667
|
Stock
options granted during the year ended 12/31/19
|
529,500
|
Stock
options exercised during the year ended 12/31/19
|
0
|
Stock
options forfeited during the year ended 12/31/19
|
(195,000)
|
Balance of employee
stock options outstanding as of 12/31/19
|
3,978,167
|
Stock
options granted during the year ended 12/31/20
|
443,500
|
Stock
options exercised during the year ended 12/31/20
|
0
|
Stock
options forfeited during the year ended 12/31/20
|
0
|
Balance of employee
stock options outstanding as of 12/31/20
|
4,421,667
|
Balance of employee
non-vested stock options outstanding as of 12/31/17
|
749,835
|
Stock
options granted during the year ended 12/31/18
|
415,000
|
Stock
options vested during the year ended 12/31/18
|
(337,499)
|
Stock
options forfeited during the year ended 12/31/18
|
(105,500)
|
Balance of employee
non-vested stock options outstanding as of 12/31/18
|
721,836
|
Stock
options granted during the year ended 12/31/19
|
529,500
|
Stock
options vested during the year ended 12/31/19
|
(325,000)
|
Stock
options forfeited during the year ended 12/31/19
|
(195,000)
|
Balance of employee
non-vested stock options outstanding as of 12/31/19
|
731,336
|
Stock
options granted during the year ended 12/31/20
|
443,500
|
Stock
options vested during the year ended 12/31/20
|
(212,500)
|
Stock
options forfeited during the year ended 12/31/20
|
0
|
Balance of employee
non-vested stock options outstanding as of 12/31/20
|
962,336
|
|
Quarter
Ended
|
|||
|
December
31
|
September
30
|
June
30
|
March
31
|
2020
|
(in thousands, except per share
data)
|
|||
Total
revenue
|
$3,268
|
$2,938
|
$2,610
|
$2,719
|
Operating
income
|
295
|
411
|
1,019
|
589
|
Net income
(loss)before income taxes
|
(4,984)
|
83
|
696
|
(337)
|
Net income
(loss)
|
(5,906)
|
83
|
696
|
(255)
|
Net income (loss)
per common share
|
|
|
|
|
Basic
|
(.26)
|
.00
|
.03
|
(.01)
|
Diluted
|
(.26)
|
.00
|
.03
|
(.01)
|
|
Quarter Ended
|
|||
|
December 31
|
September 30
|
June 30
|
March 31
|
2019
|
(in thousands, except
per share data)
|
|||
Total
revenue
|
$2,582
|
$3,079
|
$3,121
|
$2,923
|
Operating
income
|
224
|
835
|
801
|
754
|
Net income
(loss)before income taxes
|
(1,283)
|
615
|
580
|
627
|
Net income
(loss)
|
(1,763)
|
467
|
441
|
476
|
Net income (loss)
per common share
|
|
|
|
|
Basic
|
(.08)
|
.02
|
.02
|
.02
|
Diluted
|
(.08)
|
.02
|
.02
|
.02
|
Name
|
Age
|
Positions
with the Company
|
Paul W.
Mobley
|
80
|
Executive
Chairman of the Board, Chief Financial Officer and Class II
Director
|
A.
Scott Mobley
|
57
|
Chief
Executive Officer, President, Secretary and Class III
Director
|
Douglas
H. Coape-Arnold
|
75
|
Class I
Director
|
Marcel
Herbst
|
50
|
Class I
Director
|
William
Wildman
|
72
|
Class
II Director
|
Troy
Branson
|
57
|
Executive
Vice President of Franchising
|
Name and Principal
Position(s)
|
Year
|
Salary
|
Non-Equity Incentive
Compensation
|
Option
Awards(1)
|
Total
Compensation
|
Paul W.
Mobley
|
2020
|
$300,000
|
$-
|
$3,500
|
$303,500
|
Executive Chairman
of the Board and Chief Financial Officer
|
2019
|
$300,000
|
$-
|
$4,000
|
$304,000
|
|
|
|
|
|
|
A. Scott
Mobley
|
2020
|
$444,568
|
$-
|
$4,000
|
$448,568
|
Chief Executive
Officer, President and Secretary
|
2019
|
$444,568
|
$-
|
$5,000
|
$449,568
|
|
|
|
|
|
|
Troy
Branson
|
2020
|
$120,000
|
$77,110
|
$1,500
|
$198,610
|
Executive
Vice President
|
2019
|
$110,000
|
$85,967
|
$2,125
|
$198,092
|
|
Option
Awards
|
|||
Name
|
Number of
Securities Underlying Unexercised Options (#)
Exercisable
|
Number of
Securities Underlying Unexercised Options (#)
Unexercisable
|
Option Exercise
Price ($)
|
Option
Expiration Date
|
Paul W.
Mobley
|
100,000
|
|
0.58
|
9/30/23
|
|
900,000
|
|
0.58
|
9/30/23
|
|
33,333
|
|
0.58
|
6/27/22
|
|
50,000
|
|
1.00
|
7/2/23
|
|
60,000
|
|
1.00
|
7/2/24
|
|
70,000
|
|
1.00
|
6/23/25
|
|
60,000
|
|
0.53
|
7/7/26
|
|
70,000
|
|
0.51
|
7/7/27
|
|
46,667
|
23,333
|
0.623
|
7/6/28
|
|
26,667
|
53.333
|
0.60
|
7/2/29
|
|
0
|
70,000
|
0.40
|
9/30/30
|
A.
Scott Mobley
|
25,000
|
|
0.58
|
9/30/23
|
|
300,000
|
|
0.58
|
9/30/23
|
|
33,334
|
|
0.58
|
6/27/22
|
|
50,000
|
|
1.00
|
7/2/23
|
|
60,000
|
|
1.00
|
7/2/24
|
|
70,000
|
|
1.00
|
6/23/25
|
|
70,000
|
|
0.53
|
7/7/26
|
|
90,000
|
0
|
0.51
|
7/7/27
|
|
53,333
|
26,667
|
0.623
|
7/6/28
|
|
33,333
|
66,667
|
.60
|
7/2/29
|
|
0
|
80,000
|
0.40
|
9/30/30
|
Troy
Branson
|
10,000
|
|
0.58
|
9/30/23
|
|
40,000
|
|
1.00
|
7/2/23
|
|
30,000
|
|
1.00
|
7/2/24
|
|
40,000
|
|
1.00
|
6/23/25
|
|
35,000
|
|
0.53
|
7/7/26
|
|
42,500
|
|
0.51
|
7/7/27
|
|
|
42,500
|
0.623
|
7/6/28
|
|
|
42,500
|
0.60
|
7/2/29
|
|
|
30,000
|
0.40
|
9/30/30
|
Name
|
Fees Earned or
Paid in Cash ($)
|
Option Awards
($)
|
All Other
Compensation ($)
|
Total
($)
|
Douglas
H. Coape-Arnold
|
19,000
|
2,000
|
-
|
21,000
|
Marcel
Herbst
|
19,000
|
2,000
|
-
|
21,000
|
William
Wildman
|
19,000
|
2,000
|
-
|
21,000
|
Name of Beneficial
Owner
|
Number of
Shares
Beneficially Owned
(1)
|
Percent
of
Common
Stock(2)
|
Corbel Capital
Partners SBIC, L.P.
|
2,250,000(3)
|
9.2%
|
Paul W.
Mobley
|
3,659,368(4)
|
15.3
|
A. Scott
Mobley
|
1,951,245(5)
|
8.4
|
Douglas H.
Coape-Arnold
|
530,000(6)
|
2.3
|
Marcel
Herbst
|
1,110,491(7)
|
4.8
|
|
|
|
Troy
Branson
|
607,500(8)
|
2.7
|
William
Wildman
|
165,000(9)
|
0.7
|
Robert P.
Stiller
|
3,067,085(10)
|
13.8
|
All executive
officers and directors as a
group (6) persons)
|
8,023,604
|
30.1%
|
Plan
Category
|
Number of
Securities to be issued upon exercise of outstanding options,
warrants and rights
(a)
|
Weighted-average
exercise price of outstanding options, warrants and
rights
(b)
|
Number of
securities remaining available for future issuance under equity
compensation plans (excluding securities reflected in column
(a))
(c)
|
Equity compensation
plans approved by stockholders
|
-
|
$-
|
-
|
Equity compensation
plans not approved by stockholders
|
4,421,667
|
$.63
|
(1)
|
Total
|
4,421,667
|
$.63
|
(1)
|
|
2020
|
2019
|
Audit fees and
review fees (1)
|
$110,000
|
$110,000
|
The following
consolidated financial statements of Noble
|
|
Roman’s, Inc. and Subsidiaries are included in Item 8: |
|
Page
|
|
20
|
|
21
|
|
22
|
|
23
|
|
24
|
|
33
|
|
43
|
Exhibit Number
|
Description
|
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.
|
3.2
|
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.
|
3.4
|
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.
|
3.5
|
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.
|
3.6
|
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 on Form S-1 (SEC File
No.332-217442) 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.
|
4.2
|
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.
|
4.3
|
Form
of Senior Secured Promissory Note issued by Registrant to Corbel
Capital Partners SBIC, L.P. dated February 7, 2020 and filed as
Exhibit 4.3 to Registrant’s annual report on Form 10-K for
the year ended December 31, 2019 is incorporated herein by
reference.
|
4.4
|
Form of
Warrant issued to Corbel Capital Partners SBIC, L.P. dated February
7, 2020 and filed as Exhibit 4.4 to Registrant’s annual
report on Form 10-K for the year ended December 31, 2019 is
incorporated herein by reference.
|
4.5
|
Form of
Promissory Note under the Paycheck Protection Plan issued by
Registrant to Huntington National Bank dated April 17, 2020 filed
as Exhibit 4.5 to Registrant’s quarterly report on Form 10-Q
for the period ended March 31, 2020 is incorporated herein by
reference.
|
4.6
|
Promissaory
Note under the Paycheck Protection Program loan issued by Noble
Roman's, Inc. to Huntington National Bank dated February 5, 2021
filed as Exhibit 10.1 to Registrant's current report on Form 8-K
filed February 8, 2021 is incorporated herein by
reference.
|
10.1*
|
Employment
Agreement with Paul W. Mobley dated January 2, 1999filed 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.
|
10.2*
|
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.
|
10.3
|
Loan
Agreement dated as of September 13, 2017 by and between Noble
Roman’s, Inc. and First Financial, filed as Exhibit 10.1 to
the Registrant’s Form 8-K filed September 19, 2017, is
incorporated herein by reference.
|
10.4
|
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.
|
10.5
|
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.
|
10.6
|
Agreement
dated April 8, 2015, by and among Noble Roman’s, Inc. 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.
|
10.7
|
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.
|
10.8
|
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.
|
10.9
|
Registration
Rights Agreement dated October 13, 2016 by and between 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.
|
10.10
|
First
Amendment to the Registration Rights Agreement dated February 13,
2017 by and between 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.
|
10.11
|
Senior
Secured Note and Warrant Purchase Agreement dated February 7, 2020
by and between the Registrant and Corbel Capital Partners SBIC,
L.P. filed as Exhibit 10.11 to Registrant’s annual report on
Form 10-K for the year ended December 31, 2019 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.
|
C.E.O.
Certification under Rule 13a-14(a)/15d-14(a)
|
|
C.F.O.
Certification under Rule 13a-14(a)/15d-14(a)
|
|
C.E.O.
Certification under Section 1350
|
|
C.F.O.
Certification under Section 1350
|
|
101
|
Interactive
Financial Data
|
|
NOBLE
ROMAN’S, INC.
|
|
|
|
|
|
|
Date: March 22,
2021
|
By:
|
/s/ A. Scott
Mobley
|
|
|
|
A. Scott
Mobley
|
|
|
|
President and Chief
Executive
|
|
|
|
||
|
|
|
|
Date:
March
22, 2021
|
By:
|
/s/ Paul W.
Mobley
|
|
|
|
Paul W. Mobley |
|
|
|
Executive Chairman,
Chief
Financial Officer
and Principal Accounting Officer |
|
|
|
||
|
|
|
|
Date:
March
22, 2021
|
By:
|
/s/ Paul W.
Mobley
|
|
|
|
Paul W. Mobley |
|
|
|
Executive Chairman,
Chief
Financial Officer
and Principal Accounting Officer |
|
|
|
|
|
|
|
|
|
Date: March 22,
2021
|
By:
|
/s/ A. Scott
Mobley
|
|
|
|
A. Scott
Mobley
|
|
|
|
President and Chief
Executive
|
|
|
|
|
|
|
|
|
|
Date: March 22,
2021
|
By:
|
/s/ Douglas H.
Coape-Arnold
|
|
|
|
Douglas H.
Coape-Arnold
|
|
|
|
Director
|
|
|
|
|
|
|
|
|
|
Date: March 22,
2021
|
By:
|
/s/
Marcel
Herbst
|
|
|
|
Marcel
Herbst
|
|
|
|
Director
|
|
|
|
|
|
|
|
|
|
Date: March 22,
2021
|
By:
|
/s/ William
Wildman
|
|
|
|
William Wildman |
|
|
|
Director |
|
|
|
|
|
Date: March 22,
2021
|
|
/s/ A. Scott
Mobley
|
|
|
|
A. Scott Mobley
|
|
|
|
President and Chief
Executive Officer
|
|
Date: March 22,
2021
|
|
/s/ Paul W.
Mobley
|
|
|
|
Paul W. Mobley
|
|
|
|
Executive Chairman
and Chief Financial Officer
|
|
|
|
|
|
|
/s/ A. Scott
Mobley
|
|
|
|
A. Scott Mobley
|
|
|
|
President and Chief
Executive Officer
|
|
|
|
/s/ Paul W.
Mobley
|
|
|
|
Paul W. Mobley
|
|
|
|
Executive Chairman
and Chief Financial Officer
|
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Mar. 12, 2021 |
Jun. 30, 2020 |
|
Cover [Abstract] | |||
Entity Registrant Name | NOBLE ROMANS INC | ||
Entity Central Index Key | 0000709005 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | IN | ||
Entity File Number | 0-11104 | ||
Entity Public Float | $ 5,500,000 | ||
Entity Common Stock, Shares Outstanding | 22,215,512 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Stockholders' equity: | ||
Common stock, par value | $ 0.00 | $ 0.00 |
Common stock, authorized shares | 40,000,000 | 40,000,000 |
Common stock, issued shares | 22,215,512 | 22,215,512 |
Common stock, outstanding shares | 22,215,512 | 22,215,512 |
Consolidated Statements of Operations - USD ($) |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|||
Total revenue | $ 11,535,664 | $ 11,704,624 | $ 12,447,947 | ||
Operating expenses: | |||||
Total operating expenses | 7,122,043 | 6,968,860 | 7,681,993 | ||
Depreciation and amortization | 382,368 | 382,793 | 440,240 | ||
General and administrative expenses | 1,717,209 | 1,739,383 | 1,668,718 | ||
Total expenses | 9,221,620 | 9,091,036 | 9,790,951 | ||
Operating income | 2,314,044 | 2,613,588 | 2,656,996 | ||
Interest expense | 1,914,344 | 774,565 | 655,203 | ||
Adjust valuation of receivables | 4,941,718 | 1,300,000 | 4,095,805 | ||
Net (loss) income before income taxes | (4,542,018) | 539,023 | (2,094,012) | ||
Income tax expense | 839,928 | 917,088 | 930,397 | ||
Net loss from continuing operations | (5,381,946) | (378,065) | (3,024,409) | ||
Loss from discontinued operations net of tax benefit of $12,200 for 2018 | 0 | 0 | (37,800) | ||
Net loss | $ (5,381,946) | $ (378,065) | $ (3,062,209) | ||
Loss per share - basic: | |||||
Net loss from continuing operations | $ (.24) | $ (0.02) | $ (0.14) | ||
Net loss | $ (.24) | $ (0.02) | $ (0.14) | ||
Weighted average number of common shares outstanding | 22,215,512 | 22,052,859 | 21,249,607 | ||
Diluted loss per share: | |||||
Net loss from continuing operations | $ (.24) | $ (0.02) | $ (0.14) | ||
Net loss | [1] | $ (.24) | $ (0.02) | $ (0.14) | |
Weighted average number of common shares outstanding | [1] | 23,465,512 | 23,315,695 | 26,094,292 | |
Company-Owned Restaurants | |||||
Total revenue | $ 6,209,279 | $ 4,830,199 | $ 4,815,842 | ||
Operating expenses: | |||||
Total operating expenses | 4,938,133 | 4,250,406 | 3,909,142 | ||
Company-Owned Non-Traditional | |||||
Total revenue | 470,846 | 673,647 | 1,156,347 | ||
Operating expenses: | |||||
Total operating expenses | 447,040 | 626,453 | 1,145,106 | ||
Franchising | |||||
Total revenue | 4,841,229 | 6,162,576 | 6,422,315 | ||
Operating expenses: | |||||
Total operating expenses | 1,736,870 | 2,092,001 | 2,627,745 | ||
Administrative Fees and Other | |||||
Total revenue | $ 14,310 | $ 38,202 | $ 53,443 | ||
|
Consolidated Statements of Operations (Parenthetical) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Income Statement [Abstract] | |||
Tax benefit, discontinued operations | $ 0 | $ 0 | $ 12,200 |
1. Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Organization: The Company, with two wholly-owned subsidiaries, sells and services franchises and licenses and operates Company-owned foodservice locations for one non-traditional location and five traditional restaurants called Craft Pizza & Pub under the trade names “Noble Roman’s Pizza”, “Noble Roman’s Craft Pizza & Pub” and “Tuscano’s Italian Style Subs”. Unless the context otherwise indicates, reference to the “Company” are to Noble Roman’s, Inc. and its two wholly-owned subsidiaries.
Principles of Consolidation: The consolidated financial statements include the accounts of Noble Roman’s, Inc. and its wholly-owned subsidiaries, Pizzaco, Inc. and RH Roanoke, Inc. Inter-company balances and transactions have been eliminated in consolidation.
Inventories: Inventories consist of food, beverage, restaurant supplies, restaurant equipment and marketing materials and are stated at the lower of cost (first-in, first-out) or net realizable value.
Property and Equipment: Equipment and leasehold improvements are stated at cost. Depreciation and amortization are computed on the straight-line method over the estimated useful lives ranging from five years to 20 years. Leasehold improvements are amortized over the shorter of estimated useful life or the term of the lease including likely renewals. Construction and equipment in progress are stated at cost for leasehold improvements, equipment for a new restaurant being constructed and for pre-opening costs of any restaurant not yet open as of the date of the statements.
Significant Accounting Policies: There have been no significant changes in the Company's accounting policies from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2019.
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 and 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.
The Company adopted the new standard to all material leases existing on January 1, 2019 and recognized a cumulative effect adjustment to the opening balance of accumulated deficit on that date.
Cash and Cash Equivalents: Includes actual cash balance. The cash is not pledged nor are there any withdrawal restrictions.
Advertising Costs: The Company records advertising costs consistent with the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”)“Other Expense” topic and “Advertising Costs” subtopic. This statement requires the Company to expense advertising production costs the first time the production material is used.
Fair Value Measurements and Disclosures: The Fair Value Measurements and Disclosures topic of the FASB’s ASC requires companies to determine fair value based on the price that would be received to sell the assets or paid to transfer to liability to a market participant. The fair value measurements and disclosure topic emphasis that fair value is a market based measurement, not an entity specific measurement. The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following categories:
Level One: Quoted market prices in active markets for identical assets or liabilities.
Level Two: Observable market –based inputs or unobservable inputs that are corroborated by market data.
Level Three: Unobservable inputs that are not corroborated by market data.
Use of Estimates: The preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. After a thorough review by management in 2018, the Company permanently wrote off $1.3 million and created an additional reserve for possible non-collection of $2.8 million. After a review in 2019 and also considering the impact of the COVID-19 pandemic, it was decided to add an additional reserve of $1.3 million for possible non-collections. In 2020, in light of the additional uncertainty created as a result of the COVID-19 pandemic, the Company decided to create a reserve for uncollectability on all long-term franchisee receivables. The Company will continue to pursue collection where circumstances are appropriate and all collections of these receivables in the future will result in additional income at the time received. The Company evaluates its property and equipment and related costs periodically to assess whether any impairment indications are present, including recurring operating losses and significant adverse changes in legal factors or business climate that affect the recovery of recorded value. If any impairment of an individual asset is evident, a loss would be provided to reduce the carrying value to its estimated fair value.
Debt Issuance Costs: Debt issuance cost is presented on the balance sheet as a direct reduction from the carrying amount of the associated liability. Debt issuance costs are amortized to interest expense ratably over the term of the applicable debt. The unamortized debt issuance cost at December 31, 2020 was $780,000.
Intangible Assets: The Company recorded goodwill of $278,000 as a result of the acquisition of RH Roanoke, Inc. of certain assets of a former franchisee of the Company. Goodwill has an indeterminable life and is assessed for impairment at least annually and more frequently as triggering events may occur. In making this assessment, management relies on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and transactions and marketplace data. Any impairment losses determined to exist are recorded in the period the determination is made. There are inherent uncertainties related to these factors and management’s judgment is involved in performing goodwill and other intangible assets valuation analysis, thus there is risk that the carrying value of goodwill and other intangible assets may be overstated or understated. The Company has elected to perform the annual impairment assessment of recorded goodwill as of the end of the Company’s fiscal year. The results of this annual impairment assessment indicated that the fair value of the reporting unit as of December 31, 2020, exceeded the carrying or book value, including goodwill, and therefore recorded goodwill was not subject to impairment.
Royalties, Administrative and Franchise Fees: Royalties are generally recognized as income monthly based on a percentage of monthly sales of franchised or licensed restaurants and from audits and other inspections as they come due and payable by the franchisee. Fees from the retail products in grocery stores are recognized monthly based on the distributors’ sale of those retail products to the grocery stores or grocery store distributors. Administrative fees are recognized as income monthly as earned. The Company adopted ASU 2014-09 effective January 2018 which did not materially affect the Company's recognition of royalties, fees from the sale of retail products in grocery stores, administrative fees or sales from Company-owned restaurants. However, initial franchise fees and related contract costs are now deferred and amortized on a straight-line basis over the term of the franchise agreements, generally five to ten 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 cost, and the franchise fees and contract costs initially incurred and paid approximate the relative amortized franchise fees and contract costs for those same periods.
Exit or Disposal Activities Related to Discontinued Operations: The Company records exit or disposal activity for discontinued operations when management commits to an exit or disposal plan and includes those charges under results of discontinued operations, as required by the ASC “Exit or Disposal Cost Obligations” topic.
Income Taxes: The Company provides for current and deferred income tax liabilities and assets utilizing an asset and liability approach along with a valuation allowance as appropriate. The Company evaluated its deferred tax assets in 2018 and determined that $1,422,960 of the deferred tax credits may expire in 2019 and 2020 before they are fully utilized, which increased the Company’s tax expense for 2018 and reduced the deferred tax credit on the balance sheet. The Company again evaluated its deferred tax assets in 2019 and determined that $1.7 million of its net operating loss carry-forward may expire before they are used resulting in an additional $400,000 in tax expense in 2019. In 2020, the Company again reviewed its deferred tax asset and determined that 2020 taxable income used up $267,528 and $572,400 deferred credits were expiring. As of December 31, 2020, the net operating loss carry-forward was approximately $7.4 million which expires between the years 2021 and 2036.
U.S. generally accepted accounting principles require the Company to examine its tax positions for uncertain positions. Management is not aware of any tax positions that are more likely than not to change in the next 12 months, or that would not sustain an examination by applicable taxing authorities. The Company’s policy is to recognize penalties and interest as incurred in its Consolidated Statements of Operations. None were included for the years ended December 31, 2018, 2019 and 2020. The Company’s federal and various state income tax returns for 2017 through 2019 are subject to examination by the applicable tax authorities, generally for three years after the later of the original or extended due date.
Basic and Diluted Net Income Per Share: Net income per share is based on the weighted average number of common shares outstanding during the respective year. When dilutive, stock options and warrants are included as share equivalents using the treasury stock method.
The following table sets forth the calculation of basic and diluted loss per share for the year ended December 31, 2018:
(1) Net loss per share is shown the same as basic loss per share because the underlying dilutive securities have an anti-dilutive effect.
The following table sets forth the calculation of basic and diluted loss per share for the year ended December 31, 2019:
(1) Net loss per share is shown the same as basic loss per share because the underlying dilutive securities have an anti-dilutive effect.
The following table sets forth the calculation of basic and diluted loss per share for the year ended December 31, 2020:
(1) Net loss per share is shown the same as basic loss per share because the underlying dilutive securities have an anti-dilutive effect.
Subsequent Events: The Company evaluated subsequent events through the date the consolidated statements were issued and filed with the Annual Report on Form 10-K.
On February 5, 2021, the Company received an additional loan of $940,734 under the PPP. The Company intends to use the proceeds of this loan for qualifying expenses under the CARES ACT. The Company anticipates this loan will be forgiven and, therefore will account for it as a grant.
No subsequent event required recognition or disclosure except as discussed above.
|
2. Accounts Receivable |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable | At December 31, 2019 and 2020, the carrying value of the Company’s accounts receivable has been reduced to anticipated realizable value. As a result of this reduction of carrying value, the Company anticipates that substantially all of its net receivables reflected on the Consolidated Balance Sheets as of December 31, 2019 and 2020 will be collected.
Other assets, as of December 31, 2020, includes security deposit and cash value of life insurance.
Long-term receivables from franchisees in the past represented 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 Noble Roman’s trademark. In addition, some receivables arose from the Company incurring legal fees to enforce the franchise agreements and other collection cost which adds to the receivables in accordance with the agreements. Some of the receivables were generated by early termination of the franchise agreements. In 2020, in light of the additional uncertainty created as a result of the COVID-19 pandemic, the Company decided to create a reserve for uncollectability on all long-term franchisee receivables. The Company will continue to pursue collection where circumstances are appropriate and all collections of these receivables in the future will result in additional income at the time received.
|
3. Notes Payable |
12 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 | |||||||||||||||||||||||||||||||
Notes Payable [Abstract] | |||||||||||||||||||||||||||||||
Notes Payable | In September 2017, the Company entered into a loan agreement (the “Bank Agreement”) with First Financial Bank (the “Bank”). The Bank Agreement provided for a senior credit facility (the “Credit Facility”) to be provided by the Bank consisting of: (i) a term loan in the amount of $4.5 million (the “Term Loan”); and (ii) a development line of credit of up to $1.6 million (the “Development Line of Credit”). Borrowings under the Credit Facility bore interest at a variable annual rate equal to the London Interbank Offer Rate (“LIBOR”) plus 7.25%. The Term Loan and the Development Line of Credit were to be repaid monthly based on a seven-year term. All outstanding amounts owed under the Bank Agreement were to mature on September 13, 2022. In conjunction with a new credit facility entered into on February 7, 2020, all money still owed to the Bank was repaid in full.
On February 7, 2020, the Company entered into a Senior Secured Promissory Note and Warrant Purchase Agreement (the “Agreement”) with Corbel Capital Partners SBIC, L.P. (the “Purchaser”). Pursuant to the Agreement, the Company issued to the Purchaser a senior secured promissory note (the “Senior Note”) in the initial principal amount of $8.0 million. The Company has used or will use the net proceeds of the Agreement as follows: (i) $4.2 million was used to repay the Company’s then-existing bank debt which was in the original amount of $6.1 million; (ii) $1,275,000 was used to repay the portion of the Company’s existing subordinated convertible debt the maturity date of which most had not previously been extended; (iii) debt issuance costs; and (iv) the remaining net proceeds will be used for working capital or other general corporate purposes, including development of new Company-owned Craft Pizza & Pub locations.
The Senior Note bears cash interest of LIBOR, as defined in the Agreement, plus 7.75%. In addition, the Senior Note requires payment-in-kind interest (“PIK Interest”) of 3% per annum, which will be added to the principal amount of the Senior Note. Interest is payable in arrears on the last calendar day of each month. The Senior Note matures on February 7, 2025. The Senior Note does not require any fixed principal payments until February 28, 2023, at which time required monthly payments of principal in the amount of $33,333 begin and continue until maturity. The Senior Note requires the Company to make additional payments on the principal balance of the Senior Note based on its consolidated excess cash flow, as defined in the Agreement.
In conjunction with the borrowing under the Senior Note, the Company issued to the Purchaser a warrant (the “Corbel Warrant”) to purchase up to 2,250,000 shares of Common Stock. The Corbel Warrant entitles the Purchaser to purchase from the Company, at any time or from time to time: (i) 1,200,000 shares of Common Stock at an exercise price of $0.57 per share (“Tranche 1”), (ii) 900,000 shares of Common Stock at an exercise price of $0.72 per share (“Tranche 2”), and (iii) 150,000 shares of Common Stock at an exercise price of $0.97 per share (“Tranche 3”). The Purchaser is required to exercise the Corbel Warrant with respect to Tranche 1 if the Common Stock is trading at $1.40 per share or higher for a specified period, and is further required to exercise the Corbel Warrant with respect to Tranche 2 if the Common Stock is trading at $1.50 per share or higher for a specified period. Cashless exercise of the Corbel Warrant is only permitted with respect to Tranche 3. The Purchaser has the right, within six months after the issuance of any shares under the Corbel Warrant, to require the Company to repurchase such shares for cash or for Put Notes, at the Company's discretion. The Corbel Warrant expires on the sixth anniversary of the date of its issuance.
At December 31, 2020, the balance of the Senior Note was comprised of:
In the fourth quarter of 2016, the Company issued 32 Units, for a purchase price of $50,000 per Unit, or $1,600,000 in the aggregate and, in January 2017, the Company issued another 16 Units, or an additional $800,000 in the aggregate. Each $50,000 Unit consisted of a convertible, subordinated, unsecured promissory note (the “Notes”) in an aggregate principal amount of $50,000 and warrants (the “Warrants”) to purchase up to 50,000 shares of the Company’s common stock, no par value per share. The Company issued Units to investors including the following related parties: Paul W. Mobley, the Company’s Executive Chairman, Chief Financial Officer and a director of the Company ($150,000); and Herbst Capital Management, LLC, the principal of which is Marcel Herbst, a director of the Company ($200,000).
Interest on the Notes accrued at the annual rate of 10% and is payable quarterly in arrears. Initially, the Notes matured, and the Warrants expired, three years after issuance. However, in December 2018, the Company offered to extend the maturity of the Notes and the expiration date of the Warrants to January 2023. Certain of the holders of the Notes and Warrants accepted the Company’s offer. Accordingly, of the principal amount of the Notes, holders of $775,000 in principal amount extended their Notes until January 31, 2023. In 2018 and 2019, holders of $500,000 in principal amount of the Notes converted those Notes to 1,000,000 shares of the Company’s common stock in accordance with the terms of the Note. In February 2020, in conjunction with the Company’s refinancing of its debt, $1,275,000 in principal amount of those Notes was repaid leaving a balance of $625,000 which mature on January 31, 2023. The holders of the remaining $625,000 principal amount of Notes can elect, at their option any time prior to maturity, convert those Notes to common stock in accordance with the terms of the Notes.
The Warrants issued with the Notes provide for an exercise price of $1.00 per share of Common Stock (subject to anti-dilution adjustments). As a result of the February 7, 2020 financing with Corbel, the Warrants adjusted to $0.57 per share. All warrants were canceled with the repayment of the Notes except Warrants issued with $775,000 principal amount of Notes that were extended to the new maturity of January 31, 2023. Subject to certain limitations, the Company may redeem the outstanding Warrants at a price of $0.001 per share of Common Stock subject to the Warrant upon 30 days’ notice if the daily average weighted trading price of the Common Stock equals or exceeds $2.00 per share for a period of 30 consecutive trading days.
Placement agent fees and other origination costs of the Notes are deducted from the carrying value of the Notes as original issue discount (“OID”). The OID is being amortized over the term of the Notes.
At December 31, 2020, the balance of the Notes is comprised of:
Total cash and non-cash interest accrued on the Company’s indebtedness in 2020 was $1.9 million and in 2019 was $775,000.
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4. Royalties and Fees |
12 Months Ended |
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Dec. 31, 2020 | |
Advance Royalties [Abstract] | |
Royalties and Fees | Approximately $305,000, $307,000 and $198,000 are included in 2018, 2019 and 2020, respectively, royalties and fees in the Consolidated Statements of Operations for amortized initial franchise fees. Also included in royalties and fees were approximately $74,000, $70,000 and $45,000 in 2018, 2019 and 2020, respectively, for equipment commissions. 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 contractual liability for the franchisee. Such incremental costs, include training, design and related travel cost to new franchisees. The deferred contract income and costs both approximated $818,000 on December 31, 2019 and $834,000 on December 31, 2020.
In conjunction with the development of Noble Roman’s Pizza and Tuscano’s Italian Style Subs, the Company has devised its own recipes for many of the ingredients that go into the making of its products (“Proprietary Products”). The Company contracts with various manufacturers to manufacture its Proprietary Products in accordance with the Company’s recipes and formulas and to sell those products to authorized distributors at a contract price which includes an allowance for use of the Company’s recipes. The manufacturing contracts also require the manufacturers to hold those allowances in trust and to remit those allowances to the Company on a periodic basis, usually monthly. The Company recognizes those allowances in revenue as earned based on sales reports from the distributors.
There were 3,064 franchised/licensed or Company-owned outlets in operation on December 31, 2020 and 3,064 on December 31, 2019. During 2019, 22 new franchised/licensed were opened and 22 franchised outlets left the system. Grocery stores are accustomed to adding products for a period of time, removing them for a period of time and possibly re-offering them. Therefore, it is unknown how many grocery store licenses, out of the total count of 2,402, have left the system.
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5. Liabilities for Leased Facilities |
12 Months Ended |
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Dec. 31, 2020 | |
Leases [Abstract] | |
Liabilities for Leased Facilities | The Company has future obligations of $8.2 million under current operating leases as follows: due in less than one year $967,000, due in one to three years $3.0 million, due in three to five years $2.1 million and due in more than five years $2.2 million.
To implement the new accounting policies for leases, the Company used a weighted average discount rate of 7% and the weighted average lease term of 7.3 years. The Company recorded $34,986 more in lease expense than cash actually paid in 2020 for the leases.
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6. Income Taxes |
12 Months Ended |
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Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The Company had deferred tax assets, as a result of prior operating losses, of $3.9 million at December 31, 2019 and $3.1 million at December 31, 2020, which expires between the years 2021 and 2036. The net operating loss carry-forward is approximately $7.4 million so the Company will have no obligation to pay income tax on the amount of that operating loss carry-forward, however the carrying value of that deferred tax asset was significantly reduced by the 2017 Tax Act which lowered the highest corporate income tax rate from 34% to 21%. In 2017, 2018 and 2019, the Company used deferred benefits to offset its tax expense of $442,000, recorded a tax benefit of $503,000, and recorded a tax benefit of $468,000 respectively, and tax benefits from loss on discontinued operations of $57,000 in 2017 and $12,000 in 2018, however, the Company recorded a tax expense of $4.1 million in 2017 to lower the carrying value of the deferred tax credit as a result of the corporate tax rate being reduced from 34% to 21%, as explained above. The Company also recorded $1.4 million in additional tax in 2018 after evaluating its deferred tax assets and determined that $1.4 million of the deferred tax credits may expire in 2019 and 2020 before they are fully utilized. The Company also reviewed its operating loss carry-forward in 2019 and determined that $1.7 million of that loss may expire before it is used and, as a result, recorded an additional $400,000 in tax expense for 2019. In 2020, the Company again reviewed the deferred tax asset and determined that 2020 taxable income used up $267,528 of the deferred tax credits and $572,400 of the deferred tax credits were expiring. As a result of the loss carry-forwards, the Company did not pay any income taxes in 2018, 2019 and 2020. There are no other material differences between reported income tax expense or benefit and the income tax expense or benefit that would result from applying the Federal and state statutory tax rates.
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7. Common Stock |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | During 2016 and 2017, the Company issued Notes in the aggregate principal amount of $2.4 million convertible to common stock within three years at the rate of $0.50 per share and Warrants to purchase up to 2.4 million shares of the Company’s common stock at $1.00 per share. During 2018, holders of $400,000 in principal amount of Notes converted into 800,000 shares of common stock. In 2019, holders of $100,000 in principal amount of Notes converted into 200,000 shares of common stock. In February 2020, in conjunction with the Company’s refinancing, $1,275,000 in principal amount of Notes were repaid terminating the holders’ right to convert and canceling their warrants. Now outstanding are $625,000 principal amount of Notes convertible to stock at $0.50 per share and warrants to purchase 775,000 shares of stock at $0.57 per share.
The Company has an incentive stock option plan for key employees, officers and directors. The options are generally exercisable three years after the date of grant and expire ten years after the date of grant. The option prices are the fair market value of the stock at the date of grant. At December 31, 2020, the Company had the following employee stock options outstanding:
As of December 31, 2020, options for 3,409,501 shares were exercisable.
The Company adopted the modified prospective method to account for stock option grants, which does not require restatement of prior periods. Under the modified prospective method, the Company is required to record compensation expense for all awards granted after the date of adoption and for the unvested portion of previously granted awards that remain outstanding at the date of adoption, net of an estimate of expected forfeitures. Compensation expense is based on the estimated fair values of stock options determined on the date of grant and is recognized over the related vesting period, net of an estimate of expected forfeitures which is based on historical forfeitures.
The Company estimates the fair value of its option awards on the date of grant using the Black-Scholes option pricing model. The risk-free interest rate is based on external data while all other assumptions are determined based on the Company’s historical experience with stock options. The following assumptions were used for grants in 2018, 2019 and 2020:
The following table sets forth the number of options outstanding as of December 31, 2017, 2018, 2019 and 2020 and the number of options granted, exercised or forfeited during the years ended December 31, 2018, 2019 and 2020:
The following table sets forth the number of non-vested options outstanding as of December 31, 2017, 2018, 2019 and 2020, and the number of stock options granted, vested and forfeited during the years ended December 31, 2018, 2019 and 2020.
During 2020, employee stock options were granted for 443,500 shares and options for 0 shares were forfeited. At December 31, 2020, the weighted average grant date fair value of non-vested options was $0.51 per share and the weighted average grant date fair value of vested options was $0.66 per share.
The weighted average grant date fair value of employee stock options granted during 2018 was $0.623, during 2019 was $0.66 and during 2020 was $0.40. Total compensation cost recognized for share-based payment arrangements was $16,597 with a tax benefit of $3,983 in 2018, $18,829 in 2019 with a tax benefit of $4,995 in 2019 and $21,536 in 2020 with a tax benefit of $5,168. As of December 31, 2020, total unamortized compensation cost related to options was $20,075, which will be recognized as compensation cost over the next six to 36 months. No cash was used to settle equity instruments under share-based payment arrangements.
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8. Statements of Financial Accounting Standards |
12 Months Ended |
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Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Statements of Financial Accounting Standards | The Company does not believe that the recently issued Statements of Financial Accounting Standards will have any material impact on the Company’s Consolidated Statements of Operations or its Consolidated Balance Sheets.
On February 25, 2016, the ASU 2016-02, its leasing standard for both lessees and lessors. Under its core principle, a lessee will recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. The new standard took effect in 2019 for public business entities and, therefore, is included in the current financial statements. This had the effect of increasing the value of the assets and liabilities of the Company and incurred an additional expense for rent on the Consolidated Statement of Operations by $34,986 in 2020.
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9. Loss from Discontinued Operations |
12 Months Ended |
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Dec. 31, 2020 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |
Loss from Discontinued Operations | The Company made the decision in late 2008 to discontinue the business of operating traditional quick service restaurants. As a result, the Company charged off or dramatically lowered the carrying value of all receivables related to the traditional restaurants and accrued future estimated expenses related to the estimated cost to prosecute a lawsuit related to those discontinued operations. The ongoing right to receive passive income in the form of royalties is not a part of the discontinued segment.
The Company reported a net loss on discontinued operations of $37,800 in 2018. This consisted of rent related to a location that was a part of the operations discontinued in 2008. The obligation of rent on this location has been satisfied and no further loss is expected. There are no known contingencies with regard to the operations discontinued in 2008 that are expected to result in any loss.
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10. Contingencies |
12 Months Ended |
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Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | The Company, from time to time, is or may become involved in litigation or regulatory proceedings arising out of its normal business operations.
Currently, there are no such pending proceedings which the Company considers to be material.
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11. Certain Relationships and Related Transactions |
12 Months Ended |
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Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Transactions | The following is a summary of transactions to which the Company and certain officers and directors of the Company are a party or have a financial interest. The Board of Directors of the Company has adopted a policy that all transactions between the Company and its officers, directors, principal shareholders and other affiliates must be approved by a majority of the Company’s disinterested directors, and be conducted on terms no less favorable to the Company than could be obtained from unaffiliated third parties.
Of the 48 Units sold in the private placement which began in October 2016, three Units were purchased by Paul W. Mobley, Executive Chairman, and four Units were purchased by Marcel Herbst, Director. Each Unit consists of a Note in the principal amount of $50,000 and a Warrant to purchase 50,000 shares of the Company’s common stock. These transactions were all completed on the same terms and conditions as all of the independent investors who purchased the other 41 Units. The Notes, at the time of issue, were to mature three years after issue date. In late 2018, the Company sent an offer to each remaining Note holder offering to extend the maturity of the Notes to January 31, 2023. Holders of $775,000 in principal amount of the Notes accepted that offer of extension including the Notes held by Paul W. Mobley and Herbst Capital Management, LLC. In conjunction with the refinancing of the Company in February 2020, Notes held by Paul Mobley were included in the $1,275,000 in principal amount of Notes that were repaid out of the proceeds of the new financing.
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12. Unaudited Quarterly Financial Information |
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1. Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization | Organization: The Company, with two wholly-owned subsidiaries, sells and services franchises and licenses and operates Company-owned foodservice locations for one non-traditional location and five traditional restaurants called Craft Pizza & Pub under the trade names “Noble Roman’s Pizza”, “Noble Roman’s Craft Pizza & Pub” and “Tuscano’s Italian Style Subs”. Unless the context otherwise indicates, reference to the “Company” are to Noble Roman’s, Inc. and its two wholly-owned subsidiaries.
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Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of Noble Roman’s, Inc. and its wholly-owned subsidiaries, Pizzaco, Inc. and RH Roanoke, Inc. Inter-company balances and transactions have been eliminated in consolidation.
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Inventories | Inventories: Inventories consist of food, beverage, restaurant supplies, restaurant equipment and marketing materials and are stated at the lower of cost (first-in, first-out) or net realizable value.
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Property and Equipment | Property and Equipment: Equipment and leasehold improvements are stated at cost. Depreciation and amortization are computed on the straight-line method over the estimated useful lives ranging from five years to 20 years. Leasehold improvements are amortized over the shorter of estimated useful life or the term of the lease including likely renewals. Construction and equipment in progress are stated at cost for leasehold improvements, equipment for a new restaurant being constructed and for pre-opening costs of any restaurant not yet open as of the date of the statements.
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Significant Accounting Policies | Significant Accounting Policies: There have been no significant changes in the Company's accounting policies from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2019.
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 and 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.
The Company adopted the new standard to all material leases existing on January 1, 2019 and recognized a cumulative effect adjustment to the opening balance of accumulated deficit on that date.
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Cash and Cash Equivalents | Cash and Cash Equivalents: Includes actual cash balance. The cash is not pledged nor are there any withdrawal restrictions.
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Advertising Costs | Advertising Costs: The Company records advertising costs consistent with the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”)“Other Expense” topic and “Advertising Costs” subtopic. This statement requires the Company to expense advertising production costs the first time the production material is used.
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Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures: The Fair Value Measurements and Disclosures topic of the FASB’s ASC requires companies to determine fair value based on the price that would be received to sell the assets or paid to transfer to liability to a market participant. The fair value measurements and disclosure topic emphasis that fair value is a market based measurement, not an entity specific measurement. The guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following categories:
Level One: Quoted market prices in active markets for identical assets or liabilities.
Level Two: Observable market –based inputs or unobservable inputs that are corroborated by market data.
Level Three: Unobservable inputs that are not corroborated by market data.
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Use of Estimates | Use of Estimates: The preparation of the consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. After a thorough review by management in 2018, the Company permanently wrote off $1.3 million and created an additional reserve for possible non-collection of $2.8 million. After a review in 2019 and also considering the impact of the COVID-19 pandemic, it was decided to add an additional reserve of $1.3 million for possible non-collections. In 2020, in light of the additional uncertainty created as a result of the COVID-19 pandemic, the Company decided to create a reserve for uncollectability on all long-term franchisee receivables. The Company will continue to pursue collection where circumstances are appropriate and all collections of these receivables in the future will result in additional income at the time received. The Company evaluates its property and equipment and related costs periodically to assess whether any impairment indications are present, including recurring operating losses and significant adverse changes in legal factors or business climate that affect the recovery of recorded value. If any impairment of an individual asset is evident, a loss would be provided to reduce the carrying value to its estimated fair value.
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Debt Issuance Costs | Debt Issuance Costs: Debt issuance cost is presented on the balance sheet as a direct reduction from the carrying amount of the associated liability. Debt issuance costs are amortized to interest expense ratably over the term of the applicable debt. The unamortized debt issuance cost at December 31, 2020 was $780,000.
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Intangible Assets | Intangible Assets: The Company recorded goodwill of $278,000 as a result of the acquisition of RH Roanoke, Inc. of certain assets of a former franchisee of the Company. Goodwill has an indeterminable life and is assessed for impairment at least annually and more frequently as triggering events may occur. In making this assessment, management relies on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and transactions and marketplace data. Any impairment losses determined to exist are recorded in the period the determination is made. There are inherent uncertainties related to these factors and management’s judgment is involved in performing goodwill and other intangible assets valuation analysis, thus there is risk that the carrying value of goodwill and other intangible assets may be overstated or understated. The Company has elected to perform the annual impairment assessment of recorded goodwill as of the end of the Company’s fiscal year. The results of this annual impairment assessment indicated that the fair value of the reporting unit as of December 31, 2020, exceeded the carrying or book value, including goodwill, and therefore recorded goodwill was not subject to impairment.
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Royalties, Administrative and Franchise Fees | Royalties, Administrative and Franchise Fees: Royalties are generally recognized as income monthly based on a percentage of monthly sales of franchised or licensed restaurants and from audits and other inspections as they come due and payable by the franchisee. Fees from the retail products in grocery stores are recognized monthly based on the distributors’ sale of those retail products to the grocery stores or grocery store distributors. Administrative fees are recognized as income monthly as earned. The Company adopted ASU 2014-09 effective January 2018 which did not materially affect the Company's recognition of royalties, fees from the sale of retail products in grocery stores, administrative fees or sales from Company-owned restaurants. However, initial franchise fees and related contract costs are now deferred and amortized on a straight-line basis over the term of the franchise agreements, generally five to ten 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 cost, and the franchise fees and contract costs initially incurred and paid approximate the relative amortized franchise fees and contract costs for those same periods.
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Exit or Disposal Activities Related to Discontinued Operations | Exit or Disposal Activities Related to Discontinued Operations: The Company records exit or disposal activity for discontinued operations when management commits to an exit or disposal plan and includes those charges under results of discontinued operations, as required by the ASC “Exit or Disposal Cost Obligations” topic.
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Income Taxes | Income Taxes: The Company provides for current and deferred income tax liabilities and assets utilizing an asset and liability approach along with a valuation allowance as appropriate. The Company evaluated its deferred tax assets in 2018 and determined that $1,422,960 of the deferred tax credits may expire in 2019 and 2020 before they are fully utilized, which increased the Company’s tax expense for 2018 and reduced the deferred tax credit on the balance sheet. The Company again evaluated its deferred tax assets in 2019 and determined that $1.7 million of its net operating loss carry-forward may expire before they are used resulting in an additional $400,000 in tax expense in 2019. In 2020, the Company again reviewed its deferred tax asset and determined that 2020 taxable income used up $267,528 and $572,400 deferred credits were expiring. As of December 31, 2020, the net operating loss carry-forward was approximately $7.4 million which expires between the years 2021 and 2036.
U.S. generally accepted accounting principles require the Company to examine its tax positions for uncertain positions. Management is not aware of any tax positions that are more likely than not to change in the next 12 months, or that would not sustain an examination by applicable taxing authorities. The Company’s policy is to recognize penalties and interest as incurred in its Consolidated Statements of Operations. None were included for the years ended December 31, 2018, 2019 and 2020. The Company’s federal and various state income tax returns for 2017 through 2019 are subject to examination by the applicable tax authorities, generally for three years after the later of the original or extended due date.
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Basic and Diluted Net Income Per Share | Basic and Diluted Net Income Per Share: Net income per share is based on the weighted average number of common shares outstanding during the respective year. When dilutive, stock options and warrants are included as share equivalents using the treasury stock method.
The following table sets forth the calculation of basic and diluted loss per share for the year ended December 31, 2018:
(1) Net loss per share is shown the same as basic loss per share because the underlying dilutive securities have an anti-dilutive effect.
The following table sets forth the calculation of basic and diluted loss per share for the year ended December 31, 2019:
(1) Net loss per share is shown the same as basic loss per share because the underlying dilutive securities have an anti-dilutive effect.
The following table sets forth the calculation of basic and diluted loss per share for the year ended December 31, 2020:
(1) Net loss per share is shown the same as basic loss per share because the underlying dilutive securities have an anti-dilutive effect.
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Subsequent Events | Subsequent Events: The Company evaluated subsequent events through the date the consolidated statements were issued and filed with the Annual Report on Form 10-K.
On February 5, 2021, the Company received an additional loan of $940,734 under the PPP. The Company intends to use the proceeds of this loan for qualifying expenses under the CARES ACT. The Company anticipates this loan will be forgiven and, therefore will account for it as a grant.
No subsequent event required recognition or disclosure except as discussed above.
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1. Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted earnings per share | The following table sets forth the calculation of basic and diluted loss per share for the year ended December 31, 2018:
(1) Net loss per share is shown the same as basic loss per share because the underlying dilutive securities have an anti-dilutive effect.
The following table sets forth the calculation of basic and diluted loss per share for the year ended December 31, 2019:
(1) Net loss per share is shown the same as basic loss per share because the underlying dilutive securities have an anti-dilutive effect.
The following table sets forth the calculation of basic and diluted loss per share for the year ended December 31, 2020:
(1) Net loss per share is shown the same as basic loss per share because the underlying dilutive securities have an anti-dilutive effect.
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3. Notes Payable (Tables) |
12 Months Ended | |||||||||||||||
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Dec. 31, 2020 | ||||||||||||||||
Notes Payable [Abstract] | ||||||||||||||||
Credit facility |
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Notes payable |
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7. Common Stock (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee stock options outstanding |
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Assumptions for grants |
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Options outstanding |
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Number of non-vested options outstanding |
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12. Unaudited Quarterly Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited quarterly financial information |
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1. Summary of Significant Accounting Policies (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
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Net loss | $ (5,906,000) | $ 83,000 | $ 696,000 | $ (255,000) | $ (1,763,000) | $ 467,000 | $ 441,000 | $ 476,000 | $ (5,381,946) | $ (378,065) | $ (3,062,209) | |||||
Net loss per share with assumed conversions | [1] | $ (5,319,446) | $ (378,065) | $ (2,849,084) | ||||||||||||
Weighted average number of common shares outstanding, basic | 22,215,512 | 22,052,859 | 21,249,607 | |||||||||||||
Weighted average number of common shares outstanding, diluted | [1] | 23,465,512 | 23,315,695 | 26,094,292 | ||||||||||||
Earnings per share, basic | $ (.26) | $ .00 | $ 0.03 | $ (.01) | $ (0.08) | $ .02 | $ 0.02 | $ 0.02 | $ (.24) | $ (0.02) | $ (0.14) | |||||
Earnings per share, diluted | $ (.26) | $ .00 | $ 0.03 | $ (.01) | $ (0.08) | $ .02 | $ 0.02 | $ 0.02 | $ (.24) | [1] | $ (0.02) | [1] | $ (0.14) | [1] | ||
Options | ||||||||||||||||
Effect of dilutive securities | $ 0 | $ 0 | $ 0 | |||||||||||||
Effect of dilutive securities | 0 | 12,836 | 511,260 | |||||||||||||
Convertible Notes | ||||||||||||||||
Effect of dilutive securities | $ 62,500 | $ 0 | $ 213,125 | |||||||||||||
Effect of dilutive securities | 12,500,000 | 62,500 | 4,333,425 | |||||||||||||
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1. Summary of Significant Accounting Policies (Details Narrative) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Unamortized debt issuance cost | $ 780,000 | |
Goodwill | 278,466 | $ 278,466 |
Net operating loss carry-forward | $ 7,400,000 | |
Minimum | ||
Property and equipment estimated useful life | 5 years | |
Maximum | ||
Property and equipment estimated useful life | 20 years |
3. Notes Payable (Details) |
Dec. 31, 2020
USD ($)
|
---|---|
Notes Payable [Abstract] | |
Principal due | $ 8,192,365 |
Unamortized loan closing cost | (723,656) |
Carrying value | $ 7,468,709 |
3. Notes Payable (Details 1) |
Dec. 31, 2020
USD ($)
|
---|---|
Notes Payable [Abstract] | |
Face value | $ 625,000 |
Unamortized OID | (50,521) |
Carrying value | $ 574,479 |
3. Notes Payable (Details Narrative) - USD ($) |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Notes Payable [Abstract] | ||
Interest accrued | $ 1,900,000 | $ 775,000 |
4. Royalties and Fees (Details Narrative) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020
USD ($)
Outlets
|
Dec. 31, 2019
USD ($)
Outlets
|
Dec. 31, 2018
USD ($)
|
|
Deferred contract income | $ | $ 834,018 | $ 817,763 | |
Number of franchisee | Outlets | 3,064 | 3,064 | |
Outlets opened | Outlets | 22 | ||
Outlets closed | Outlets | 22 | ||
Initial Franchisee Fees | |||
Royalties and fees | $ | $ 198,000 | $ 307,000 | $ 305,000 |
Equipment Commission | |||
Royalties and fees | $ | $ 45,000 | $ 70,000 | $ 74,000 |
5. Liabilities for Leased Facilities (Details Narrative) |
12 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Leases [Abstract] | |
Future obligations operating leases | $ 8,200,000 |
Due in less than one year | 967,000 |
Due in one to three years | 3,000,000 |
Due in three to five years | 2,100,000 |
Due in more than five years | $ 2,200,000 |
Weighted average discount rate | 7.00% |
Weighted average lease term | 7 years 3 months 18 days |
Lease expense | $ 34,986 |
6. Income Taxes (Details Narrative) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Deferred tax asset | $ 3,100,000 | $ 3,900,000 | ||
Operating losses expiration year | 2021 and 2036 | |||
Deferred benefits | $ (468,000) | $ (503,000) | $ 442,000 | |
Tax benefits from loss on discontinued operations | $ 12,000 | $ 57,000 |
7. Common Stock (Details 1) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Equity [Abstract] | |||
Expected volatility | 20.00% | 20.00% | 20.00% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 3 years | 3 years | 3 years |
Risk-free interest rate, minimum | 1.68% | 1.68% | 1.68% |
Risk-free interest rate, maximum | 2.82% | 2.82% | 2.82% |
7. Common Stock (Details 2) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Equity [Abstract] | |||
Stock options outstanding, beginning | 3,978,167 | 3,643,667 | 3,334,167 |
Stock options granted | 443,500 | 529,500 | 415,000 |
Stock options exercised | 0 | 0 | 0 |
Stock options forfeited | 0 | (195,000) | (105,500) |
Stock options outstanding, ending | 4,421,667 | 3,978,167 | 3,643,667 |
7. Common Stock (Details 3) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Equity [Abstract] | |||
Non-vested stock options outstanding, beginning | 731,336 | 721,836 | 749,835 |
Non-vested stock options granted | 443,500 | 529,500 | 415,000 |
Non-vested stock options vested | (212,500) | (325,000) | (337,499) |
Non-vested stock options forfeited | 0 | (195,000) | (105,500) |
Non-vested stock options outstanding, ending | 962,336 | 731,336 | 721,836 |
7. Common Stock (Details Narrative) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Equity [Abstract] | |||
Stock options exercisable | 3,409,501 | ||
Stock options granted | 443,500 | 529,500 | 415,000 |
Stock options forfeited | 0 | 195,000 | 105,500 |
Weighted average grant date fair value of non-vested options | $ .51 | ||
Weighted average grant date fair value of vested options | .66 | ||
Weighted average grant date fair value of employee stock options granted | $ .40 | $ .66 | $ 0.623 |
Share based compensation | $ 21,536 | $ 18,829 | $ 16,597 |
Tax benefit | 5,168 | $ 4,995 | $ 3,983 |
Unamortized compensation cost related to options | $ 20,075 | ||
Unamortized compensation cost related to options recognition period | 36 months |
9. Loss from Discontinued Operations (Details Narrative) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |||
Loss on discontinued operations | $ 0 | $ 0 | $ (37,800) |
12. Unaudited Quarterly Financial Information (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Total revenue | $ 3,268,000 | $ 2,938,000 | $ 2,610,000 | $ 2,719,000 | $ 2,582,000 | $ 3,079,000 | $ 3,121,000 | $ 2,923,000 | $ 11,535,664 | $ 11,704,624 | $ 12,447,947 | |||||
Operating income | 295,000 | 411,000 | 1,019,000 | 589,000 | 224,000 | 835,000 | 801,000 | 754,000 | 2,314,044 | 2,613,588 | 2,656,996 | |||||
Net income (loss) before income taxes | (4,984,000) | 83,000 | 696,000 | (337,000) | (1,283,000) | 615,000 | 580,000 | 627,000 | (4,542,018) | 539,023 | (2,094,012) | |||||
Net income (loss) | $ (5,906,000) | $ 83,000 | $ 696,000 | $ (255,000) | $ (1,763,000) | $ 467,000 | $ 441,000 | $ 476,000 | $ (5,381,946) | $ (378,065) | $ (3,062,209) | |||||
Net income (loss) per common share | ||||||||||||||||
Basic | $ (.26) | $ .00 | $ 0.03 | $ (.01) | $ (0.08) | $ .02 | $ 0.02 | $ 0.02 | $ (.24) | $ (0.02) | $ (0.14) | |||||
Diluted | $ (.26) | $ .00 | $ 0.03 | $ (.01) | $ (0.08) | $ .02 | $ 0.02 | $ 0.02 | $ (.24) | [1] | $ (0.02) | [1] | $ (0.14) | [1] | ||
|
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