NOTE L– SEGMENT REPORTING:

The Company has three reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information: (1) Pizza Inn Franchising, (2) Pie Five Franchising and (3) Company-Owned Restaurants. These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the three operating segments. Other revenue consists of nonrecurring items.

The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees and territorial rights. Revenue for this segment is derived from franchise royalties, franchise fees, sale of area development and foreign master license rights and incentive payments from third party suppliers and distributors. Assets for this segment include equipment, furniture and fixtures.

The Company-Owned Restaurants segment includes sales and operating results for all Company-owned restaurants. Assets for this segment include equipment, furniture and fixtures for the Company-owned restaurants.

Corporate administration and other assets primarily include cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets. All assets are located within the United States.

Summarized in the following tables are net sales and operating revenues, depreciation and amortization expense, income from continuing operations before taxes, capital expenditures and assets for the Company's reportable segments as of and for the fiscal years ended June 30, 2019 and June 24, 2018 (in thousands):

	Fiscal Year Ended
	June 30, 2019			June 24, 2018
Net sales and operating revenues:
Pizza Inn Franchising	$	7,192		$	6,892
Pie Five Franchising		4,192			3,970
Company-Owned Restaurants (1)		887			4,254
Corporate administration and other		48			4
Consolidated revenues	$	12,319		$	15,120

Depreciation and amortization:
Pizza Inn Franchising	$	-		$	-
Pie Five Franchising		-			-
Company-Owned Restaurants (1)		123			459
Combined		123			459
Corporate administration and other (2)		343			415
Depreciation and amortization	$	466		$	874

Income/(Loss) from continuing operations before taxes:
Pizza Inn Franchising	$	5,512		$	5,594
Pie Five Franchising		2,094			2,623
Company-Owned Restaurants (1)		(2,001	)		(1,763	)
Combined		5,605			6,454
Corporate administration and other		(6,406	)		(7,502	)
Income/(loss) from continuing operations before taxes	$	(801	)	$	(1,048	)

Notes:

(1)

Company stores that were closed are included in discontinued operations in the accompanying Condensed Consolidated Statement of Operations.

(2)

Portions of corporate administration and other have been allocated to segments.

The following table provides information on our foreign and domestic revenues:

Geographic information (revenues):
United States	$	12,086	$	14,566
Foreign countries		233		554
Consolidated total	$	12,319	$	15,120