View Filing Data

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Sep. 29, 2013	Nov. 12, 2013
Document and Entity Information:
Entity Registrant Name	PIZZA INN HOLDINGS, INC /MO/
Document Type	10-Q
Document Period End Date	Sep. 29, 2013
Amendment Flag	false
Entity Central Index Key	0000718332
Current Fiscal Year End Date	--06-29
Entity Common Stock, Shares Outstanding		8,510,236
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 29, 2013	Jun. 30, 2013
CURRENT ASSETS
Cash and cash equivalents	$ 1,073	$ 919
Accounts receivable, less allowance for bad debts of $273 and $228, respectively	3,319	3,139
Notes receivable,	283	292
Inventories,	1,486	1,615
Income tax receivable	343	343
Deferred income tax assets	826	882
Prepaid expenses and other,	537	307
Total current assets	7,867	7,497
LONG-TERM ASSETS
Property, plant and equipment, net	5,723	4,711
Long-term notes receivable	12	40
Long-term deferred tax asset	410	168
Deposits and other	10	119
Total Assets	14,022	12,535
CURRENT LIABILITIES
Accounts payable - trade,	2,379	1,572
Accrued expenses,	1,767	1,749
Deferred revenues,	141	169
Bank debt,	181	669
Total current liabilities	4,468	4,159
LONG-TERM LIABILITIES
Bank debt, net of current portion	1,675	1,856
Deferred revenues, net of current portion	531	370
Deferred gain on sale of property	53	59
Other long-term liabilities	37	22
Total liabilities	6,764	6,466
COMMITMENTS AND CONTINGENCIES (See Note 3)	0	0
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 15,569,432 and 15,312,680 shares, respectively; outstanding 8,450,032 and 8,193,280 shares, respectively	156	153
Additional paid-in capital	11,711	10,174
Retained earnings	20,027	20,378
Treasury stock at cost Shares in treasury: 7,119,400	(24,636)	(24,636)
Total shareholders' equity	7,258	6,069
Total Liabilities and Stockholders' Equity	$ 14,022	$ 12,535

CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICALS - USD ($)	Sep. 29, 2013	Jun. 30, 2013
Parentheticals
Allowance for doubtful accounts	$ 273	$ 228
Common Stock, Par Value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	26,000,000	26,000,000
Common Stock, shares issued	15,569,432	15,312,680
Common Stock, shares outstanding	8,450,032	8,193,280
Treasury stock, Shares	7,119,400	7,119,400

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Sep. 29, 2013	Sep. 23, 2013
Revenues:
REVENUES	$ 10,212	$ 10,438
COSTS AND EXPENSES:
Cost of sales	8,848	8,792
General and administrative expenses	1,030	1,005
Franchise expenses	667	501
Pre-opening expenses	86	79
Bad debt	45	45
Interest expense	43	104
Total Cost And Expenses	10,719	10,526
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES	(507)	(88)
Income taxes	(169)	(45)
LOSS FROM CONTINUING OPERATIONS,	(338)	(43)
Loss from discontinued operations, net of taxes	(13)	(15)
NET LOSS	$ (351)	$ (58)
LOSS PER SHARE OF COMMON STOCK - BASIC:
Loss from continuing operations	$ (0.04)	$ (0.01)
Loss from discontinued operations	0.00	0.00
Net loss-BASIC	0.04	(0.01)
lOSS PER SHARE OF COMMON STOCK - DILUTED:
Loss from continuing operations.	(0.04)	(0.01)
Loss from discontinued operations.	0.00	0.00
Net loss -DILUTED	$ (0.04)	$ (0.01)
Weighted average common shares outstanding - basic	8,496	8,021
Weighted average common and potential dilutive common shares outstanding	9,034	8,113

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Sep. 29, 2013	Sep. 23, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (351)	$ (58)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	364	291
Stock compensation expense	15	45
Deferred tax	(186)	(43)
Gain on assets held for sale	(6)	0
Provision for bad debts	45	44
Changes in operating assets and liabilities:
Notes and accounts receivable	(188)	176
Inventories	129	72
Accounts payable - trade	807	(115)
Accrued expenses	33	77
Deferred revenue	127	(72)
Prepaid expenses and other	(132)	(14)
Cash provided by operating activities	657	403
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets	6	0
Capital expenditures	(1,365)	(394)
Cash used by investing activities	(1,359)	(394)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Sale of Stock	1,525	0
Borrowings of bank debt	0	2,560
Repayments of bank debt	(669)	(2,002)
Cash provided by financing activities	856	558
Net increase in cash and cash equivalents	154	567
Cash and cash equivalents, beginning of period	919	590
Cash and cash equivalents, end of period	1,073	1,157
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid net	37	33
Income taxes - net	$ 1	$ 0

Summary of Significant Accounting Policies

3 Months Ended

Sep. 29, 2013

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

(1)	Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All appropriate intercompany balances and transactions have been eliminated.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Fiscal Quarters

The three month periods ended September 29, 2013 and September 23, 2012, each contained 13 weeks.

Revenue Recognition

The Company recognizes revenue when products are delivered and the customer takes ownership and assumes risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. The Company's Norco division sells food and supplies to franchisees on trade accounts under terms common in the industry. Food and supply sales revenues, including shipping and handling costs, are recognized upon delivery of the product. Revenue from restaurant sales is recognized when food and beverage products are sold. The Company reports revenue net of sales taxes collected from customers and remitted to governmental taxing authorities.

Franchise revenue consists of income from license fees, royalties, and area development and foreign master license fees. License fees are recognized as income when there has been substantial performance under the agreement by the Company. Domestic license fees are generally recognized at the time the restaurant is opened. Foreign master license fees are generally recognized upon execution of the agreement as all material services relating to the sale have been substantially performed by the Company and the fee has been collected. Royalties are recognized as income when earned.

Stock-Based Compensation

The Company accounts for stock options using the fair value recognition provisions of the authoritative guidance on share-based payments. The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow.

Use of Management Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically and actual results could differ materially from estimates.

Reclassification

Certain items have been reclassified in the prior year financial statements to conform to current year presentation.

Long Term Debt

3 Months Ended

Sep. 29, 2013

Long-Term Debt

Long-term Debt

(2)	Long-Term Debt

On August 28, 2012, the Company entered into a Loan and Security Agreement (the “F&M Loan Agreement”) with The F&M Bank & Trust Company (“F&M”) providing for a $2.0 million revolving credit facility (with a $500 thousand letter of credit subfacility), a $2.0 million fully funded term loan facility and a $6.0 million advancing term loan facility. An origination fee of 0.5% of the total credit facilities was paid at closing. At closing, F&M funded a $2.0 million term loan payable in 48 equal monthly installments of principal plus accrued interest at a fixed rate of 4.574% per annum. Amounts repaid under this fully funded term loan may not be reborrowed. Initial proceeds from the F&M Loan Agreement were used to repay amounts borrowed under a previous credit facility that subsequently was canceled.

On June 13, 2013 the Company entered into a First Amendment to the F&M Loan Agreement that revised certain financial covenants to address proceeds from the Company’s at-the-market offering of common stock. On September 10, 2013 the Company entered into a Second Amendment to the F&M Loan Agreement that specified the application of prepayments to the loan amortization schedule and revised certain definitions.

The Company may borrow, repay and reborrow under the revolving credit facility through August 28, 2014, at which time all amounts outstanding under the revolving credit facility mature. Availability under the revolving credit facility is limited by advance rates on eligible inventory and accounts receivable. Per annum interest on indebtedness from time to time outstanding under the revolving credit facility is computed at the Wall Street Journal prime rate plus 1.00% and is payable monthly. An unused commitment fee of 0.50% per annum is payable quarterly on the average unused portion of the revolving credit facility.

Through August 28, 2014, F&M has agreed to make up to $6.0 million in additional term loans to the Company. Advances for such additional term loans are limited by a percentage of the costs of equipment, leasehold improvements and other opening costs for new Company-owned Pie Five Units and may not be reborrowed after repayment. Interest only is payable monthly on all additional term loan advances during an annual borrowing period. At the end of each annual borrowing period, all additional term loan advances during such borrowing period become payable in 48 equal monthly installments of principal plus accrued interest. Interest on each term loan accrues at the Wall Street Journal prime rate plus 1.00% or, at the Company’s option, a fixed rate equal to the Bloomberg 4-year LIBOR swap rate plus 3.90%.

As security for the credit facilities, the Company has pledged substantially all of its assets including, but not limited to, accounts receivable, inventory and equipment. The F&M Loan Agreement contains various affirmative covenants which, among other things, require the Company to provide F&M with certain financial statements, compliance statements, reports and other information. The F&M Loan Agreement also contains various negative covenants which, among other things, require the Company to maintain certain financial ratios and restrict the ability of the Company to engage in certain activities. If an event of default occurs under the F&M Loan Agreement and any cure periods have expired, F&M may terminate all commitments under the credit facilities and declare all unpaid principal, interest and other amounts owing under the credit facilities to be immediately due and payable.

The Company was in compliance with all covenants under the F&M Loan Agreement as of September 29, 2013. As of September 29, 2013, the balance on the initial term loan facility was $1.1 million with an interest rate of 4.574%, the balance on the advancing term loan facility was $0.7 million with an interest rate of 4.25%, the balance on the revolving credit facility was zero with an interest rate of 4.25% and the Company had an outstanding letter of credit of $0.2 million.

Commitment and Contingencies

3 Months Ended

Sep. 29, 2013

Commitment and Contingencies:

Commitments and Contingencies Disclosure

(3)	Commitments and Contingencies

On April 22, 2009, the Company’s board of directors amended the stock purchase plan first adopted on May 23, 2007, and previously amended on June 2, 2008, to increase the number of shares of common stock the Company may repurchase to a total of 3,016,000 shares. As of September 29, 2013, up to an additional 848,425 shares could be purchased under the plan.

The Company is subject to various claims and legal actions in the ordinary course of its business. The Company believes that all such claims and actions currently pending against it are either adequately covered by insurance or would not have a material adverse effect on the Company’s annual results of operations, cash flows or financial condition if decided in a manner that is unfavorable to the Company.

Stock Based Compensation

3 Months Ended

Sep. 29, 2013

Compensation and Employee Benefit Plans

(4) Stock-Based Compensation

For the quarter ended September 29, 2013, the Company recognized stock-based compensation expense of $15,000. As of September 29, 2013, unamortized stock-based compensation expense was $0.2 million.

The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:

	Three Months Ended
	September 29, 2013		September 23, 2012

Outstanding at beginning of year		851,306		486,506

Granted		8,664		110,000
Exercised		-		-
Forfeited/Canceled/Expired		-		-

Outstanding at end of period		859,970		596,506

Exercisable at end of period		464,306		374,106

Earnings Per Share (EPS)

3 Months Ended

Sep. 29, 2013

Earnings Per Share:

Earnings Per Share

(5)	Earnings per Share (EPS)

The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts).

	Three Months Ended
	September 29,			September 23,
	2013			2012
Loss from continuing operations	$	(338	)	$	(43	)
Discontinued operations		(13	)		(15	)
Net loss available to common stockholders	$	(351	)	$	(58	)

BASIC:
Weighted average common shares		8,496			8,021

Loss from continuing operations per share	$	(0.04	)	$	(0.01	)
Discontinued operations per common share		-			-
Net loss per common share	$	(0.04	)	$	(0.01	)

DILUTED:
Weighted average common shares		8,496			8,021
Dilutive stock options		538			92
Weighted average common shares outstanding		9,034			8,113


Loss from continuing operations per share	$	(0.04	)	$	(0.01	)
Discontinued operations per common share		-			-
Loss per common share	$	(0.04	)	$	(0.01	)

For the three months ended September 23, 2012, options to purchase 206,000 shares of common stock at exercise prices ranging from $3.11 to $5.51 were excluded from the computation of diluted EPS because the options’ exercise prices exceeded the average market price of the common shares for the period.

Closed Restaurants and Discontinued Operations

3 Months Ended

Sep. 29, 2013

Discontinued Operations and Disposal Groups:

Disposal Groups, Including Discontinued Operations, Disclosure

(6) Closed restaurants and discontinued operations

The authoritative guidance on “Accounting for the Impairment or Disposal of Long-Lived Assets,” requires that discontinued operations that meet certain criteria be reflected in the statement of operations after results of continuing operations as a net amount. This guidance also requires that the operations of the closed restaurants, including any impairment charges, be reclassified to discontinued operations for all periods presented.

The authoritative guidance on “Accounting for Costs Associated with Exit or Disposal Activities,” requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred. This authoritative guidance also establishes that fair value is the objective for initial measurement of the liability.

Loss from discontinued operations reflects costs associated with a former Company-owned restaurant in Texas that was closed during the quarter ended September 23, 2007. This property is on the market for sub-lease. Because we believe that the property will sub-lease at or above the contracted lease rates, we have not reserved any additional costs related to our obligations under this non-cancelable lease.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

+ Details

Income Taxes

3 Months Ended

Sep. 29, 2013

Income Taxes:

Income Tax Disclosure

(7) Income Taxes

For the three month period ended September 29, 2013, income tax benefit of $0.2 million was calculated on an effective income tax rate that is consistent with the statutory U.S. federal income tax rate of 34% adjusted for state income tax effects and permanent difference items. Management believes that future operations will generate sufficient taxable income, along with the reversal of temporary differences, to fully realize the net deferred tax asset of $1.2 million.

Segment Reporting

3 Months Ended

Sep. 29, 2013

Segment Reporting:

Segment Reporting Disclosure

(8)	Segment Reporting

Summarized in the following tables are net sales and operating revenues, operating income and geographic information (revenues) for the Company’s reportable segments for the three months ended September 29, 2013 and September 23, 2012 (in thousands). Operating income reported below excludes income tax provision and discontinued operations.

		Three Months Ended
		September 29,			September 23,
		2013			2012
Net sales and operating revenues:
Franchising and food and supply distribution		$	7,799		$	8,612
Company-owned restaurants (1)			2,413			1,826
	Consolidated revenues	$	10,212		$	10,438

Depreciation and amortization:
Franchising and food and supply distribution		$	2		$	-
Company-owned restaurants (1)			306			224
	Combined		308			224
Corporate administration and other			56			67
	Depreciation and amortization	$	364		$	291

Income (loss) from continuing operations before taxes:
Franchising and food and supply distribution (2)		$	292		$	676
Company-owned restaurants (1) (2)			(441	)		(262	)
	Combined		(149	)		414
Corporate administration and other (2)			(358	)		(502	)
	Operating loss	$	(507	)	$	(88	)

Geographic information (revenues):
United States		$	9,988		$	10,132
Foreign countries			224			306
	Consolidated total	$	10,212		$	10,438

(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.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

Accounting Policies

3 Months Ended

Sep. 29, 2013

Accounting Policies:

Principles of Consolidation

Principles of Consolidation

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Fiscal Quarters

Fiscal Quarters

The three month periods ended September 29, 2013 and September 23, 2012, each contained 13 weeks.

Revenue Recognition,

Revenue Recognition

Stock Based Compensation

Stock-Based Compensation

Use of Management Estimates

Use of Management Estimates

Reclassification,

Reclassification

Certain items have been reclassified in the prior year financial statements to conform to current year presentation.

- Definition

Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.

+ References + Details

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

+ References + Details

- Definition

Disclosure of accounting policy for determining an entity's fiscal year or other fiscal period. This disclosure may include identification of the fiscal period end-date, the length of the fiscal period, any reporting period lag between the entity and its subsidiaries, or equity investees. If a reporting lag exists, the closing date of the entity having a different period end is generally noted, along with an explanation of the necessity for using different closing dates. Any intervening events that materially affect the entity's financial position or results of operations are generally also disclosed.

+ References + Details

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Schedule of Stock Based Compensation (Tables)

3 Months Ended

Sep. 29, 2013

Schedule of Stock Based Compensation (Tables):

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following table summarizes the number of shares of the Company’s common stock subject to outstanding stock options:

	Three Months Ended
	September 29, 2013		September 23, 2012

Outstanding at beginning of year		851,306		486,506

Granted		8,664		110,000
Exercised		-		-
Forfeited/Canceled/Expired		-		-

Outstanding at end of period		859,970		596,506

Exercisable at end of period		464,306		374,106

Earnings Per Share (Tables)

3 Months Ended

Sep. 29, 2013

Earnings Per Share:

Schedule of Earnings Per Share, Basic and Diluted

	Three Months Ended
	September 29,			September 23,
	2013			2012
Loss from continuing operations	$	(338	)	$	(43	)
Discontinued operations		(13	)		(15	)
Net loss available to common stockholders	$	(351	)	$	(58	)

BASIC:
Weighted average common shares		8,496			8,021

Loss from continuing operations per share	$	(0.04	)	$	(0.01	)
Discontinued operations per common share		-			-
Net loss per common share	$	(0.04	)	$	(0.01	)

DILUTED:
Weighted average common shares		8,496			8,021
Dilutive stock options		538			92
Weighted average common shares outstanding		9,034			8,113


Loss from continuing operations per share	$	(0.04	)	$	(0.01	)
Discontinued operations per common share		-			-
Loss per common share	$	(0.04	)	$	(0.01	)

Schedule of Segment Reporting (Tables)

3 Months Ended

Sep. 29, 2013

Schedule of Segment Reporting (Tables):

Schedule of Segment Reporting Information, by Segment

		Three Months Ended
		September 29,			September 23,
		2013			2012
Net sales and operating revenues:
Franchising and food and supply distribution		$	7,799		$	8,612
Company-owned restaurants (1)			2,413			1,826
	Consolidated revenues	$	10,212		$	10,438

Depreciation and amortization:
Franchising and food and supply distribution		$	2		$	-
Company-owned restaurants (1)			306			224
	Combined		308			224
Corporate administration and other			56			67
	Depreciation and amortization	$	364		$	291

Income (loss) from continuing operations before taxes:
Franchising and food and supply distribution (2)		$	292		$	676
Company-owned restaurants (1) (2)			(441	)		(262	)
	Combined		(149	)		414
Corporate administration and other (2)			(358	)		(502	)
	Operating loss	$	(507	)	$	(88	)

Geographic information (revenues):
United States		$	9,988		$	10,132
Foreign countries			224			306
	Consolidated total	$	10,212		$	10,438

(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.

Loan and Security Agreement with F & M Bank & Trust Company (Details) - USD ($)	Sep. 29, 2013	Aug. 28, 2012
Loan and Security Agreement with F & M Bank & Trust Company:
Revolving credit facility provided		$ 2.0
Revolving credit facility with letter of credit subfacility	$ 0.2	500
Fully Funded Term loan facility		2.0
Advancing term loan facility	0.7	$ 6.0
Origination fee of the total credit		0.50%
Unused commitment fee per annum is payable quarterly		0.50%
F & M funded term loan payable	$ 1.1	$ 2.0
Term loan payable in equal monthly installments		$ 48
Accrued interest at a fixed rate	4.57%	4.57%
F & M agreed to make up in additional term loans	$ 6.0
Advancing term loan facility subject to the terms and conditions of the F & M loan agreement	$ 0.7
Interest on each term loan Prime plus	1.00%
Bloomberg 4-year LIBOR swap rate plus	3.90%

Commitments and Contingencies (Details) - shares	Sep. 29, 2013	Jun. 02, 2008
Commitments and Contingencies As Of:
Approved total number of shares that may be repurchased		3,016,000
Additional shares that may be purchased under the plan	848,425

Stock-Based Compensation (Details)	3 Months Ended
Stock-Based Compensation (Details)	Sep. 29, 2013 USD ($)
Stock-Based Compensation During The Period:
Recognized stock-based compensation expense	$ 15,000
Unamortized stock-based compensation expense	$ 0.2

Outstanding Stock Options (Details) - shares	3 Months Ended
Outstanding Stock Options (Details) - shares	Sep. 29, 2013	Sep. 23, 2012
Outstanding Stock Options During The Period:
Outstanding at beginning of year	851,306	486,506
Granted	8,664	110,000
Exercised	0	0
Forfeited/Canceled/Expired	0	0
Outstanding at end of period	859,970	596,506
Exercisable at end of period	464,306	374,106

Earnings per Share (EPS) Consists of the Following(Details) - $ / shares	3 Months Ended
	Sep. 29, 2013	Sep. 23, 2012
Earnings per Share (EPS) Consists of the Following
Loss from continuing operations(EPS)	$ (338)	$ (43)
Discontinued operations (EPS)	(13)	(15)
Net loss available to common stockholders	$ (351)	$ (58)
BASIC-Weighted average common shares	8,496	8,021
BASIC- Loss from continuing operations per share	$ (0.04)	$ (0.01)
BASIC-Discontinued operations per common share	0
BASIC- Net loss per common share	$ (0.04)	$ (0.01)
DILUTED-Weighted average common shares	8,496	8,021
DILUTED:Dilutive stock options	538	92
DILUTED- Weighted average common shares outstanding	9,034	8,113
DILUTED-Loss from continuing operations per share	$ (0.04)	$ (0.01)
DILUTED-Discontinued operations per common share	0
DILUTED-Loss per common share	$ (0.04)	$ (0.01)

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	Sep. 29, 2013 USD ($)
Income Taxes Consist of the Following:
Income tax benefit	$ 0.2
Effective income tax rate that is consistent with the statutory U.S. federal income tax rate	34.00%
Net deferred tax asset	$ 1.2

Segment Reporting Operating Income and Geographic Information (Details) - USD ($)	3 Months Ended
	Sep. 29, 2013	Sep. 23, 2012
Net sales and operating revenues:
Franchising and food and supply distribution	$ 7,799	$ 8,612
Company-owned restaurants (1)	2,413	1,826
Consolidated revenues	10,212	10,438
Depreciation and amortization:
Franchising and food and supply distribution.	2
Company-owned restaurants. (1)	306	224
Combined	308	224
Corporate administration and other	56	67
Depreciation and amortization	364	291
Franchising and food and supply distribution (2)	292	676
Company-owned restaurants (1) (2)	(441)	(262)
Combined.	(149)	414
Corporate administration and other (2)	(358)	(502)
Operating loss.	(507)	(88)
Geographic information (revenues):
United States	9,988	10,132
Foreign countries	224	306
Consolidated total	$ 10,212	$ 10,438