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Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
Document and Entity Information - USD ($) $ in Thousands	Jun. 24, 2018	Sep. 19, 2018	Dec. 24, 2017
Document and Entity Information:
Entity Registrant Name	RAVE RESTAURANT GROUP, INC.
Entity Trading Symbol	rave
Document Type	10-K
Document Period End Date	Jun. 24, 2018
Amendment Flag	false
Entity Central Index Key	0000718332
Current Fiscal Year End Date	--06-24
Entity Common Stock, Shares Outstanding		15,047,470
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	2018
Document Fiscal Period Focus	FY
Entity Public Float			$ 11,300

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Income Statement [Abstract]
REVENUES:	$ 15,120	$ 26,077
COSTS AND EXPENSES:
Cost of sales	3,654	13,927
General and administrative expenses	7,597	10,801
Franchise expenses	2,645	2,736
Pre-opening expenses	114	162
(Gain) / Loss on sale of assets	(144)	882
Impairment of long-lived assets and other lease charges	894	5,877
Bad debt	351	342
Interest expense	183	106
Depreciation and amortization expense	874	2,434
Total costs and expenses	16,168	37,267
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES	(1,048)	(11,190)
Income tax expense / (benefit)	(3,322)	53
Income (LOSS) FROM CONTINUING OPERATIONS	2,274	(11,243)
Loss from discontinued operations, net of taxes	(362)	(1,248)
Net Income / (loss)	$ 1,912	$ (12,491)
Income / loss PER SHARE OF COMMON STOCK - BASIC:
Income / (loss) from continuing operations	$ 0.17	$ (1.06)
Loss from discontinued operations	(0.03)	(0.12)
Net income / ( loss)	0.14	(1.18)
LOSS PER SHARE OF COMMON STOCK - DILUTED:
Income / (Loss) from continuing operations	0.16	(1.06)
Loss from discontinued operations	(0.03)	(0.12)
Net income (loss)	$ 0.13	$ (1.18)
Weighted average common shares outstanding - basic	13,854	10,617
Weighted average common and potential dilutive common shares outstanding	14,983	10,617

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 24, 2018	Jun. 25, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 1,386	$ 451
Accounts receivable, less allowance for doubtful accounts of $158 and $249, respectively	1,518	2,761
Other receivable	300
Notes receivable	712	675
Inventories	6	79
Income tax receivable	5	194
Property held for sale	539	671
Prepaid expenses and other	273	295
Total current assets	4,739	5,126
LONG-TERM ASSETS
Property, plant and equipment, net	1,510	3,808
Intangible assets definitie-lived, net	212	239
Long-term notes receivable	803	127
Deferred tax asset, net	3,479
Deposits and other	243	246
Total assets	10,986	9,546
CURRENT LIABILITIES
Accounts payable - trade	774	4,165
Short-term debt	0	1,000
Accrued expenses	1,109	1,265
Deferred rent	32	101
Deferred revenues	65	212
Total current liabilities	1,980	6,743
LONG-TERM LIABILITIES
Convertible Notes	1,562	2,749
Deferred rent, net of current portion	433	655
Deferred revenues, net of current portion	670	1,425
Other long-term liabilities	42	53
Total liabilities	4,687	11,625
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 and 17,786,049 shares, respectively; outstanding 15,047,470 and 10,666,845 shares, respectively	222	178
Additional paid-in capital	33,206	26,784
Retained earnings (accumulated deficit)	(2,493)	(4,405)
Treasury stock at cost 7,119,204 shares	(24,636)	(24,636)
Total shareholders' equity (deficit)	6,299	(2,079)
Total liabilities and shareholders' equity (deficit)	$ 10,986	$ 9,546

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 24, 2018	Jun. 25, 2017
Statement of Financial Position [Abstract]
Allowance for bad debts accounts	$ 249	$ 158
Common Stock, Par Value	$ 0.01	$ 0.01
Common Stock, Shares Authorized	26,000,000	26,000,000
Common Stock, Shares Issued	17,786,049	22,166,674
Common Stock, Shares Outstanding	15,047,470	10,666,845
Treasury Stock, shares	7,119,204	7,119,204

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common Stock Shares	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Treasury Stock	Total
Beginning balance, shares at Jun. 26, 2016	10,342			(7,119)
Beginning balance, value at Jun. 26, 2016	$ 175	$ 25,778	$ 8,086	$ (24,636)	$ 9,403
Stock compensation expense		58			$ 58
Stock options exercised, shares	315				315,000
Stock options exercised, value	$ 3	$ 803			$ 806
Conversion of senior notes, net, shares	10
Conversion of senior notes, net, value		$ 145			$ 145
Net lncome			(12,491)		(12,491)
Ending balance, shares at Jun. 25, 2017	10,667			(7,119)
Ending balance, value at Jun. 25, 2017	$ 178	26,784	(4,405)	$ (24,636)	(2,079)
Stock compensation expense		115			$ 115
Stock options exercised, shares					0
Sale of stock, shares	3,766
Sale of stock, value	$ 38	5,140			$ 5,178
Conversion of senior notes, net, shares	614
Conversion of senior notes, net, value	$ 6	1,308			1,314
Ending balance, shares at Jun. 24, 2018	15,047			(7,119)
Ending balance, value at Jun. 24, 2018	$ 222	$ 33,206	$ (2,493)	$ (24,636)	$ 6,299

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Statement of Cash Flows [Abstract]
Net Income / (Loss)	$ 1,912	$ (12,491)
Adjustments to reconcile net loss to cash provided (used) by operating activities:
Impairment of fixed assets and other assets	894	4,773
Stock compensation expense	115	58
Depreciation and amortization	835	2,410
Amortization of intangible assets definite-lived	39	46
Amortization of Debt Issue Costs	35
Gain/loss on the sale of assets	(144)	882
Provision for bad debt	351	342
Changes in operating assets and liabilities:
Accounts receivable	908	(576)
Inventories	73	118
Prepaid expenses, deposits and other, net	25	116
Deferred revenue	(767)	(107)
Accounts payable - trade	(4,241)	350
Deferred Tax Assets	(3,479)
Accrued expenses, deferred rent and other	(458)	(1,469)
Cash provided by operating activities	(3,902)	(5,548)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets	1,789	999
Capital expenditures	(1,081)	(573)
Cash provided by investing activities	708	426
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance (payments) of short-term debt	(1,000)	1,000
Proceeds from sale of stock	5,129
Proceeds from issuance of convertible notes		2,894
Proceeds from exercise of stock options		806
Cash provided by financing activities	4,129	4,700
Net Increase/(decrease) in cash and cash equivalents	935	(422)
Cash and cash equivalents, beginning of year	451	873
Cash and cash equivalents, end of year	$ 1,386	$ 451

A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jun. 24, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Description of Business:

Rave Restaurant Group, Inc. and its subsidiaries (collectively referred to as the “Company”, or in the first person notations of “we”, “us” and “our”) franchise pizza buffet, delivery/carry-out and express restaurants domestically and internationally under the trademark “Pizza Inn” and operate and franchise domestic fast casual restaurants under the trademarks “Pie Five Pizza Company” or “Pie Five”. We facilitate the procurement and distribution of food, equipment and supplies to our domestic and international system of restaurants through agreements with third party distributors.

As of June 24, 2018, we owned and operated one Pie Five restaurant (“Pie Five Units”). As of that date, we also had 72 franchised Pie Five Units, 208 franchised Pizza Inn restaurants, and three licensed Pizza Inn Express, or PIE, kiosks (“PIE Units”). The 150 domestic franchised Pizza Inn restaurants were comprised of 90 pizza buffet restaurants (“Buffet Units”), eight delivery/carry-out restaurants (“Delco Units”), and 52 express restaurants (“Express Units”). As of June 24, 2018, there were 58 international franchised Pizza Inn restaurants. Domestic Pizza Inn restaurants and kiosks were located predominantly in the southern half of the United States, with Texas, Arkansas, North Carolina and Tennessee accounting for approximately 24%, 13%, 13% and 7%, respectively, of the total number of domestic units.

Principles of Consolidation:

The consolidated financial statements include the accounts of Rave Restaurant Group, Inc. and its subsidiaries, all of which are wholly owned. All appropriate inter-company balances and transactions have been eliminated.

Reclassifications:

Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

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. Restricted cash of $0.2 million at June 24, 2018 and June 25, 2017 is omitted from cash and cash equivalents and is included in other long term assets. The restricted cash is held in an interest-bearing money market account and is restricted pursuant to a letter of credit for an insurance claim dating back to the mid-1980’s.

Concentration of Credit Risk:

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. At June 24, 2018 and June 25, 2017, and at various times during the fiscal years then ended, cash and cash equivalents were in excess of Federal Depository Insurance Corporation insured limits. We do not believe we are exposed to any significant credit risk on cash and cash equivalents.

Notes receivable, which potentially subject the Company to concentrations of credit risk, consist primarily of structured Company-financed sales of assets. At June 24, 2018 and June 25, 2017, and at various times during the fiscal years then ended, the Company had concentrations of credit risk with three franchisees on notes receivables with both short and long term maturities. As of June 24, 2018, the Company had one short term note receivable with one franchisee with a balloon payment of $0.6 million due during the second quarter of fiscal 2019. At June 24, 2018, the Company had three additional notes receivable with three franchisees totaling $0.9 million. Each of the financed asset sales was executed with a 5.0% stated interest rate, principal and interest payments due monthly and a balloon payment due after 24 months.

Inventories:

Inventory consists primarily of food, paper products and supplies stored in and used by Company restaurants and was stated at lower of first-in, first-out (“FIFO”) or market. The valuation of such restaurant inventory requires us to estimate the amount of obsolete and excess inventory based on estimates of future retail sales by Company-owned restaurants. Overestimating retail sales by Company-owned restaurants could result in the write-down of inventory which would have a negative impact on the gross margin of such Company-owned restaurants.

Closed Restaurants and Discontinued Operations:

In April, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which modifies the definition of discontinued operations to include only disposals of an entity that represent strategic shifts that have or will have a major effect on an entity’s operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. The standard was effective prospectively for annual and interim periods beginning after December 15, 2014, with early adoption permitted. This pronouncement did not have a material impact on our condensed consolidated financial statements.

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

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

Discontinued operations include losses attributable to the discontinued Norco distribution and supply division, leased buildings associated with Company-owned restaurants closed in prior years, and Company-owned restaurants closed in the reported period.

Property, Plant and Equipment:

Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Repairs and maintenance are charged to operations as incurred while major renewals and betterments are capitalized. Upon the sale or disposition of a fixed asset, the asset and the related accumulated depreciation or amortization are removed from the accounts and the gain or loss is included in operations. The Company capitalizes interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying asset and amortized over the estimated useful life of the asset.

Depreciation and amortization are computed on the straight-line method over the estimated useful lives of the assets or, in the case of leasehold improvements, over the term of the lease including any reasonably assured renewal periods, if shorter. The useful lives of the assets range from three to ten years.

Impairment of Long-Lived Asset and other Lease Charges:

The Company reviews long-lived assets for impairment when events or circumstances indicate that the carrying value of such assets may not be fully recoverable. Impairment is evaluated based on the sum of undiscounted estimated future cash flows expected to result from use of an asset compared to its carrying value. If impairment is recognized, the carrying value of the impaired asset is reduced to its fair value, based on discounted estimated future cash flows. During fiscal year 2018 and 2017, the Company tested its long-lived assets for impairment and recognized pre-tax, non-cash impairment charges of $0.9 million and $5.9 million, respectively, related to the carrying value of multiple Pie Five and Pizza Inn units.

Accounts Receivable:

Accounts receivable consist primarily of receivables generated from franchise royalties and food and supply sales to franchisees prior to the discontinuation of the Norco division. The Company records a provision for doubtful receivables to allow for any amounts that may be unrecoverable based upon an analysis of the Company's prior collection experience, customer creditworthiness and current economic trends. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Finance charges may be accrued at a rate of 18% per year, or up to the maximum amount allowed by law, on past due receivables. The interest income recorded from finance charges is immaterial.

Notes Receivable:

Notes receivable primarily consist of promissory notes arising from franchisee agreements. The majority of amounts and terms are evidenced by formal promissory notes and personal guarantees. All notes allow for early payment without penalty. Fixed principle and interest payments are due monthly. Interest income is recognized monthly. Notes receivable mature at various dates through 2021 and bear interest at a weighted average rate of 5.0% at June 24, 2018.

Management evaluates the creditworthiness of franchisees by considering credit history and sales to evaluate credit risk. Management determines interest rates based on credit risk of the underlining franchisee. The Company monitors payment history to determine whether or not a loan should be placed on a nonaccrual status or impaired. The Company charges off notes receivable based on an account-by-account analysis of the borrower’s current economic conditions, monthly payments history and historical loss experience. The allowance for doubtful notes receivable is netted within notes receivable.

The principal balance outstanding on the notes receivable and expected principal collections for the next three years were as follows as of June 24, 2018 (in thousands):

Notes Receivable
2019	$ 712
2020	317
2021	486
		$ 1,515

Income Taxes:

Income taxes are accounted for using the asset and liability method pursuant to the authoritative guidance on Accounting for Income Taxes. Deferred taxes are recognized for the tax consequences of "temporary differences" by applying enacted statutory tax rates applicable to future years to differences between the financial statement and carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes for a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes future tax benefits to the extent that realization of such benefits is more likely than not.

The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. During the fourth quarter of fiscal year June 24, 2018, the Company reversed a portion of the prior valuation allowance against its deferred tax asset. The valuation allowance decreased by $6.6 million during fiscal year 2018, from $9.0 million at June 25, 2017 to $2.4 million at June 24, 2018. This resulted in a tax benefit of $3.4 million due to expected future taxable income.

The Company assessed whether the valuation allowance should be maintained against its deferred tax assets based on consideration of all available evidence, using a “more likely than not” standard. In assessing the need for the valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets. Future sources of taxable income were also considered in determining the amount of the recorded valuation allowance. Based on the Company's review of this evidence, management determined it was appropriate to reverse a portion of the valuation allowance against the Company's deferred tax assets.

Income tax benefit of $3.3 million for fiscal 2018 represents $0.1 million in state and foreign tax expense and a $3.4 million benefit on reversal of a portion of the valuation allowance. At the end of tax year ended June 24, 2018, the Company had net operating loss carryforwards totaling $23.5 million that are available to reduce future taxable income and will begin to expire in 2032.

Pre-Opening Expense:

The Company's pre-opening costs are expensed as incurred and generally include payroll and other direct costs associated with training new managers and employees prior to opening a new restaurant, rent and other unit operating expenses incurred prior to opening, and promotional costs associated with the opening.

Related Party Transactions:

On February 20, 2014, the Company entered into an Advisory Services Agreement (the “Agreement”) with NCM Services, Inc. (“NCMS”) pursuant to which NCMS will provide certain advisory and consulting services to the Company. NCMS is indirectly owned and controlled by Mark E. Schwarz, the Chairman of the Company. The term of the Agreement commenced December 30, 2013, and continues quarterly thereafter until terminated by either party. Pursuant to the Agreement, NCMS was paid an initial fee of $150,000 and earns quarterly fees of $50,000 and an additional fee of up to $50,000 per quarter (not to exceed an aggregate of $100,000 in additional fees). The quarterly and additional fees are waived if the Company is not in compliance with all financial covenants under its primary credit facility or to the extent that payment of those fees would result in non-compliance with such financial covenants. The Agreement was terminated at the end of fiscal 2017.

On December 22, 2016, the Company obtained a $1.0 million loan from its largest shareholder, Newcastle Partners, LP ("Newcastle"), evidenced by a promissory note. The loan bore interest at 10% per annum and was originally due and payable on April 30, 2017. On May 8, 2017, the Company renewed and extended the promissory note on the same terms until the earlier of September 1, 2017, or the Company’s receipt of at least $2.0 million in additional debt or equity capital. The note was paid in full in fiscal 2018. Newcastle is an affiliate of the Company's Chairman, Mark E. Schwarz.

Revenue Recognition:

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 revenues consist of income from license fees, royalties, and area development and foreign master license fees and supplier and distributor incentive revenues. 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. Supplier and distributor incentive revenues are recognized when title to the underlying commodities transfer.

Stock Options:

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.

The Company’s stock-based compensation plans are described more fully in Note H. Stock options under these plans are granted at exercise prices equal to the fair market value of the Company’s stock at the dates of grant. Generally those options vest ratably over various vesting periods.

Restricted Stock Units:

Compensation cost is measured as an amount equal to the fair value of the restricted stock units on the date of grant and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on the best estimate of the ultimate achievement level.

Fair Value of Financial Instruments:

The carrying amounts of accounts receivable and accounts payable approximate fair value because of the short maturity of these instruments.

Advertising and Marketing Costs:

Advertising and marketing costs are expensed as incurred and totaled $0.7 million for fiscal year ended June 24, 2018 and $0.8 million for fiscal year ended June 25, 2017. Advertising and marketing costs are included in cost of sales and franchise expenses in the consolidated statements of operations.

Contingencies:

Provisions for legal settlements are accrued when payment is considered probable and the amount of loss is reasonably estimable in accordance with the authoritative guidance on Accounting for Contingencies. If the best estimate of cost can only be identified within a range and no specific amount within that range can be determined more likely than any other amount within the range, and the loss is considered probable, the minimum of the range is accrued. Legal and related professional services costs to defend litigation are expensed as incurred.

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. Actual results could differ materially from estimates.

Fiscal Year:

The Company's fiscal year ends on the last Sunday in June. The fiscal years ended June 24, 2018 and June 25, 2017 both contained 52 weeks.

Discontinuation of Norco Distribution Division:

During the fiscal quarter ended December 24, 2017, the Company discontinued its Norco distribution division and revised its arrangements with third party suppliers and distributors of food, equipment and supplies. As a result, sale of food, equipment and supplies is no longer recognized as revenue and the cost of such items is no longer included in cost of sales. The Company now recognizes incentive revenues received from third party suppliers and distributors as revenue.

B. PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Jun. 24, 2018

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE B – PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS:

Property, and plant and equipment consist of the following (in thousands):

	Estimated Useful	June 24,			June 25,
	Lives	2018			2017

Equipment, furniture and fixtures	3 - 7 yrs	$	1,090		$	4,791
Software	5 yrs		778			1,143
Leasehold improvements	10 yrs or lease term, if shorter		1,033			3,949
			2,901			9,883
Less: accumulated depreciation/amortization			(1,391	)		(6,075	)
		$	1,510		$	3,808

Depreciation and amortization expense was approximately $0.9 million and $2.4 million for the fiscal years ended June 24, 2018 and June 25, 2017, respectively.

Intangible assets consist of the following (in thousands):

		June 24, 2018							June 25, 2017
	Estimated Useful	Acquisition		Accumulated			Net		Acquisition		Accumulated			Net
	Lives	Cost		Amortization			Value		Cost		Amortization			Value

Trademarks and tradenames	10 years	$	264	$	(127	)	$	137	$	261	$	(101	)	$	160
Name change	15 years		70		(16	)		54		70		(11	)		59
Prototypes	5 years		218		(197	)		21		208		(188	)		20
		$	552	$	(340	)	$	212	$	539	$	(300	)	$	239

Amortization expense for intangible assets was approximately $39 thousand and $46 thousand for the fiscal years ended June 24, 2018 and June 25, 2017, respectively.

C. ACCRUED EXPENSES

12 Months Ended

Jun. 24, 2018

Accrued Liabilities and Other Liabilities [Abstract]

ACCRUED EXPENSES

NOTE C - ACCRUED EXPENSES:

Accrued expenses consist of the following (in thousands):

		June 24,		June 25,
		2018		2017
Compensation	$	654	$	836
Other		404		254
Professional fees		43		167
Insurance loss reserves		8		8

	$	1,109	$	1,265

D. CONVERTIBLE NOTES

12 Months Ended

Jun. 24, 2018

Convertible Notes Payable [Abstract]

CONVERTIBLE NOTES

NOTE D - CONVERTIBLE NOTES:

On March 3, 2017, the Company completed a registered shareholder rights offering of its 4% Convertible Senior Notes due 2022 (“Notes”). Shareholders exercised subscription rights to purchase all 30,000 of the Notes at the par value of $100 per Note, resulting in gross offering proceeds to the Company of $3.0 million.

The Notes bear interest at the rate of 4% per annum on the principal or par value of $100 per note, payable annually in arrears on February 15 of each year, commencing February 15, 2018. Interest is payable in cash or, at the Company’s discretion, in shares of Company common stock. The Notes mature on February 15, 2022, at which time all principal and unpaid interest will be payable in cash or, at the Company’s discretion, in shares of Company common stock. The Notes are secured by a pledge of all outstanding equity securities of our two primary direct operating subsidiaries.

Noteholders may convert their notes to common stock effective February 15, May 15, August 15 and November 15 of each year, unless the Company sooner elects to redeem the notes. The conversion price is $2.00 per share of common stock. Accrued interest will be paid through the effective date of the conversion in cash or, at the Company’s sole discretion, in shares of Company common stock.

The Company determined that the Notes contained a beneficial conversion feature of $0.1 million since the market price of the Company’s common stock was higher than the effective conversion price of the notes when issued. The beneficial conversion feature and the issuance costs of the notes aggregated $0.2 million and were considered a debt discount and accreted into interest expense using the effective interest method over the debt maturity period.

During fiscal 2018, $1.3 million in par value of the Notes were converted to common shares. At the end of fiscal 2018, $1.7 million in par value of the Notes were outstanding, offset by $0.1 million of unamortized debt issue costs and unamortized debt discounts.

E. INCOME TAXES

12 Months Ended

Jun. 24, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE E - INCOME TAXES:

Provision for income taxes from continuing operations consists of the following (in thousands):

	Fiscal Year Ended
	June 24,			June 25,
	2018			2017
Current - Federal	$	(33	)	$	—
Current - Foreign		51			—
Current - State		30			53
Deferred - Federal		—			—
Deferred - State		—			—
Provision for income taxes	$	48		$	53

Included in loss from discontinued operations is $60 thousand and $0 of tax benefit for the fiscal years ended June 24, 2018 and June 25, 2017, respectively.

The effective income tax rate varied from the statutory rate for the fiscal years ended June 24, 2018 and June 25, 2017 as reflected below (in thousands):

	June 24,			June 25,
	2018			2017
Federal income taxes blended statutory rate of 27.64% of pre-tax loss	$	(291	)	$(4,119)
State income tax, net of federal effect		51		35
Foreign taxes		30		-
Permanent adjustments		35		24
Rate change		3,416		-
Valuation allowance		(6,597	)	4,019
Other		34		94
	$	(3,322	)	$53

The tax effects of temporary differences that give rise to the net deferred tax assets consisted of the following (in thousands):

		June 24,			June 25,
	2018			2017


Current
Reserve for bad debt	$	36		$	89
Deferred fees		15			27
Other reserves and accruals		562			1,323
		613			1,439
Non Current
Credit carryforwards		153			199
Net operating loss carryforwards		5,122			4,799
Depreciable assets		17			2,585

Total gross deferred tax asset		5,905			9,022

Valuation allowance		(2,426	)		(9,022	)

Net deferred tax asset	$	3,479		$	—

At the end of tax year ended June 24, 2018, the Company had net operating loss carryforwards totaling $23.5 million that are available to reduce future taxable income and will begin to expire in 2032.

F. LEASES

12 Months Ended

Jun. 24, 2018

Leases [Abstract]

LEASES

NOTE F - LEASES:

Premises occupied by Company-owned restaurants are leased for initial terms of five to ten years, and each has multiple renewal terms. Certain lease agreements contain either a provision requiring additional rent if sales exceed specified amounts or an escalation clause based upon a predetermined multiple.

The Company leases its 19,576 square foot corporate office facility with average annual lease payments of approximately $17.50 per square foot. This lease began on January 2, 2017 and has a ten year term.

Future minimum rental payments under active non-cancelable leases with initial or remaining terms of one year or more at June 24, 2018 were as follows (in thousands):

<BTB>		Operating
<S>		Leases

2019	$	2,007
2020		2,024
2021		2,091
2022		2,035
2023		1,833
Thereafter		4,264
	$	14,254

Future minimum sublease rental income under active non-cancelable leases with initial or remaining terms of one year or more at June 24, 2018 were as follows (in thousands):


		Sublease Rental Income

2019	$	162
2020		168
2021		174
2022		175
2023		177
Thereafter		181
	$	1,037

Rental expense consisted of the following (in thousands):

	Fiscal Year Ended
	Year Ended			Year Ended
	June 24,			June 25,
	2018			2017

Minimum rentals	$	1,114		$	1,878
Sublease rentals		(161	)		(129	)
	$	953		$	1,749

G. EMPLOYEE BENEFITS

12 Months Ended

Jun. 24, 2018

Employee Benefits and Share-based Compensation, Noncash [Abstract]

EMPLOYEE BENEFITS

NOTE G - EMPLOYEE BENEFITS:

The Company has a tax advantaged savings plan that is designed to meet the requirements of Section 401(k) of the Internal Revenue Code (the “Code”). The current plan is a modified continuation of a similar savings plan established by the Company in 1985. Employees who have completed six months of service and are at least 21 years of age are eligible to participate in the plan. The plan provides that participating employees may elect to have between 1% and 15% of their compensation deferred and contributed to the plan subject to certain IRS limitations. Effective June 27, 2005, the Company has a discretionary matching contribution. For calendar years 2016 and 2017, the Company contributed on behalf of each participating employee an amount equal to 50% of the employee’s contributions up to 4% of compensation. Separate accounts are maintained with respect to contributions made on behalf of each participating employee. Employer matching contributions and earnings thereon are invested in the same investments as each participant’s employee deferral. The plan is subject to the provisions of the Employee Retirement Income Security Act, as amended, and is a profit sharing plan as defined in Section 401(k) of the Code.

For the fiscal years ended June 24, 2018 and June 25, 2017, total matching contributions to the tax advantaged savings plan by the Company on behalf of participating employees were approximately $44,000 and $40,000, respectively.

H. STOCK BASED COMPENSATION PLANS

12 Months Ended

Jun. 24, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK BASED COMPENSATION PLANS

NOTE H - STOCK BASED COMPENSATION PLANS:

In June 2005, the 2005 Employee Incentive Stock Option Award Plan (the “2005 Employee Plan”) was approved by the Company’s shareholders with a plan effective date of June 23, 2005. Under the 2005 Employee Plan, officers and employees of the Company were eligible to receive options to purchase shares of the Company’s common stock. Options were granted at market value of the stock on the date of grant, were subject to various vesting and exercise periods as determined by the Compensation Committee of the board of directors, and could be designated as non-qualified or incentive stock options. A total of 1,000,000 shares of common stock were authorized for issuance under the 2005 Employee Plan. The 2005 Employee Plan expired by its terms on June 23, 2015.

The shareholders also approved the 2005 Non-Employee Directors Stock Award Plan (the “2005 Directors Plan”) in June 2005, to be effective as of June 23, 2005. Directors not employed by the Company were eligible to receive stock options under the 2005 Directors Plan. Options for common stock equal to twice the number of shares of common stock acquired during the previous fiscal year, up to 40,000 shares per year, were automatically granted to each non-employee director on the first day of each fiscal year. Options were granted at market value of the stock on the first day of each fiscal year, with vesting periods beginning at a minimum of six months and with exercise periods up to ten years. A total of 650,000 shares of Company common stock were authorized for issuance pursuant to the 2005 Directors Plan. The 2005 Directors Plan expired by its terms on June 23, 2015.

The 2015 Long Term Incentive Plan (the “2015 LTIP”) was approved by the Company’s shareholders on November 18, 2014, and became effective June 1, 2015. Officers, employees and non-employee directors of the Company are eligible to receive awards under the 2015 LTIP. A total of 1,200,000 shares of common stock are authorized for issuance under the 2015 LTIP. Awards authorized under the 2015 LTIP include incentive stock options, non-qualified stock options, restricted shares, restricted stock units and rights (either with or without accompanying options). The 2015 LTIP provides for options to be granted at market value of the stock on the date of grant and have exercise periods determined by the Compensation Committee of the board of directors. The Compensation Committee may also determine the vesting periods, performance criteria and other terms and conditions of all awards under the 2015 LTIP. The Compensation Committee has adopted resolutions under the 2015 LTIP automatically granting to each non-employee director on the first day of each fiscal year options to purchase twice the number of shares of common stock acquired during the previous fiscal year, up to a maximum of 40,000 shares. Such options are exercisable at the market value of the stock on the first day of the fiscal year, vest six months from the date of grant and expire 10 years from the date of grant.

Share based compensation expense is included in general and administrative expense in the statement of operations.

Stock Options:

A summary of stock option transactions under all of the Company’s stock option plans and information about fixed-price stock options is as follows:

	Twelve Months Ended
	June 24, 2018				June 25, 2017
			Weighted-					Weighted-
			Average					Average
			Exercise					Exercise
	Shares		Price		Shares			Price
Outstanding at beginning of year		478,056	$	4.16		847,556		$	3.77

Granted		—		—		50,000		$	3.95
Exercised		—		—		(315,000	)	$	2.56
Forfeited/Canceled/Expired		—		—		(104,500	)	$	5.67

Outstanding at end of period		478,056	$	4.16		478,056		$	4.16

Exercisable at end of year		478,056	$	4.16		388,056		$	3.54

Weighted-average fair value of
options granted during the year				—					1.11

Total intrinsic value of			$	—				$	806,400
options exercised

At June 24, 2018, there was no intrinsic value of options outstanding.

The following table provides information on options outstanding and options exercisable as of June 24, 2018:

	Options Outstanding			Options Exercisable
		Weighted-
		Average
	Options	Remaining	Weighted-	Shares	Weighted-
Range of	Outstanding	Contractual	Average	Exercisable	Average
Exercise Prices	at Jun 24, 2018	Life (Years)	Exercise Price	at Jun 24, 2018	Exercise Price

$1.55 - 1.95	81,306	1.1	$1.90	81,306	$1.90
$1.96 - 2.35	90,000	0.0	$2.32	90,000	$2.32
$2.36 - 2.75	40,000	3.0	$2.71	40,000	$2.71
$2.76 - 3.30	55,000	4.0	$3.11	55,000	$3.11
$3.31 - 3.95	50,000	8.0	$3.95	50,000	$3.95
$5.51 - 5.74	8,664	5.0	$5.74	8,664	$5.74
$5.95 - 6.25	128,800	5.9	$6.07	128,800	$6.07
$6.26 - 13.11	24,286	7.0	$13.11	24,286	$13.11
	478,056	3.8	$4.16	478,056	$4.16

We determine fair value following the authoritative guidance as follows:

Valuation and Amortization Method. We estimate the fair value of share-based awards granted using the Black-Scholes option valuation model. We amortize the fair value of all awards on a straight-line basis over the requisite service periods, which are generally the vesting periods.

Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. Unless a life is specifically stated, we determine the expected life using the “simplified method” in accordance with Staff Accounting Bulletin No. 110 since we do not have sufficient historical share option exercise experience.

Expected Volatility. Using the Black-Scholes option valuation model, we estimate the volatility of our common stock at the date of grant based on the historical volatility of our common stock.

Risk-Free Interest Rate. We base the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award.

Expected Dividend Yield. We have not paid any cash dividends on our common stock in the last ten years and we do not anticipate paying any cash dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero in the Black-Scholes option valuation model.

Expected Forfeitures. We use historical data to estimate pre-vesting option forfeitures. We record stock-based compensation only for those awards that are expected to vest.

The following weighted average assumptions were used for options granted in the last two fiscal years:

	Fiscal Year Ended
	June 24,		June 25,
	2018		2017
Expected life (in years)		n/a		5.5
Expected volatility		n/a		34.6	%
Risk-free interest rate		n/a		1.1	%
Expected forfeiture rate		n/a		61.8	%

At June 24, 2018, the Company had no unvested options. Stock compensation expense related to stock options of $35 thousand and $58 thousand was recognized in fiscal years 2018 and 2017, respectively.

Restricted Stock Units:

Restricted stock units awarded under the 2015 LTIP represent the right to receive shares of common stock upon the satisfaction of vesting requirements, performance criteria and other terms and conditions. During fiscal 2018, an aggregate of 488,723 performance-based restricted stock units were granted to certain employees. During fiscal 2017, an aggregate of 536,310 performance-based restricted stock units were granted to certain employees.

The restricted stock units granted to each recipient are allocated among performance criteria pertaining to various aspects of the Company’s business, as well as its overall operations, measured based on the second fiscal year following the date of grant. Achievement of the various performance criteria entitles the recipient to receive shares of common stock in amounts ranging from 50% to 150% of the number of restricted stock units granted. Grantees of restricted stock units do not have any rights of a stockholder, and do not participate in any distributions on our common stock, until the award fully vests upon satisfaction of the vesting schedule, performance criteria and other conditions set forth in their award agreement. Therefore, unvested restricted stock units are not considered participating securities under ASC 260, “Earnings Per Share,” and are not included in the calculation of basic or diluted earnings per share.

A summary of the status of restricted stock units as of June 24, 2018 and June 25, 2017, and changes during the fiscal years then ended is presented below:

	June 24,			June 25,
	2018			2017
Outstanding at beginning of year		487,950			79,620
Granted during the year		488,723			536,310
Forfeited during the year		(68,380	)		(127,980	)
Outstanding at end of year		908,293			487,950

Vested at beginning of year		—			—
Vested during the year		—			—
Vested at end of year		—			—

Unvested at end of year		908,293			487,950

I. SHAREHOLDERS' EQUITY

12 Months Ended

Jun. 24, 2018

Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE I - SHAREHOLDERS’ EQUITY:

On April 22, 2009, the board of directors of the Company amended the stock repurchase plan first authorized on May 23, 2007, and previously amended on June 2, 2008, by increasing the aggregate number of shares of common stock the Company may repurchase under the plan to a total of 3,016,000 shares. No shares were repurchased during fiscal 2018 and, as of June 24, 2018, there were 848,425 shares available to repurchase under the plan.

On December 5, 2017, the Company entered into an At Market Issuance Sales Agreement with B. Riley FBR, Inc. (“B. Riley FBR”) pursuant to which the Company may offer and sell shares of its common stock having an aggregate offering price of up to $5,000,000 from time to time through B. Riley FBR acting as agent (the “2017 ATM Offering”). The 2017 ATM Offering is being undertaken pursuant to Rule 415 and a shelf Registration Statement on Form S-3 which was declared effective by the SEC on November 6, 2017.

The Company pays to B. Riley FBR a fee equal to 3% of the gross sales price in addition to reimbursing certain costs. The Company had $8 thousand in expenses associated with the 2017 ATM Offering in fiscal 2018.

J. COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 24, 2018

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE J - COMMITMENTS AND CONTINGENCIES:

The Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company's annual results of operations or financial condition if decided in a manner that is unfavorable to us.

K. EARNINGS PER SHARE

12 Months Ended

Jun. 24, 2018

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE K - EARNINGS PER SHARE:

The Company computes and presents earnings per share (“EPS”) in accordance with the authoritative guidance on Earnings Per Share. Basic EPS excludes the effect of potentially dilutive securities while diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised, converted or resulted in the issuance of common stock that then shared in the earnings of the Company.

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).

	Fiscal Year Ended
	June 24,			June 25,
	2018			2017
Income/(loss) from continuing operations	$	2,274		$	(11,243	)
Loss from discontinued operations		(362	)		(1,248	)
Net income/(loss) available to common stockholders	$	1,912		$	(12,491	)
Interest saved on Notes of $2,258.4 at 4%	$	90		$	—
Adjusted net income/(loss)	$	2,002		$	(12,491	)

BASIC:
Weighted average common shares		13,854			10,617

Income/(loss) from continuing operations per common share	$	0.17		$	(1.06	)
Loss from discontinued operations per common share		(0.03	)		(0.12	)
Net income/(loss) per common share	$	0.14		$	(1.18	)

DILUTED:
Weighted average common shares		13,854			10,617
Convertible Notes		1,129			—
Dilutive stock options		—			—
Weighted average common shares outstanding		14,983			10,617


Income/(loss) from continuing operations per common share	$	0.16		$	(1.06	)
Loss from discontinued operations per common share		(0.03	)		(0.12	)
Net income/(loss) per common share	$	0.13		$	(1.18	)

We had 478,056 shares and 388,056 shares of common stock potentially issuable upon exercise of employee stock options for years ended June 24, 2018 and June 25, 2017, respectively, that were excluded from the weighted average number of shares outstanding on a diluted basis because the effect of such options would be anti-dilutive. These instruments expire at varying times from fiscal 2019 through fiscal 2026.

L. SEGMENT REPORTING

12 Months Ended

Jun. 24, 2018

Segment Reporting [Abstract]

SEGMENT REPORTING

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

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

Summarized in the following 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 24, 2018 and June 25, 2017 (in thousands):

		Fiscal Year Ended
		June 24,	June 25,
		2018	2017
Net sales and operating revenues:
Pizza Inn Franchising		$ 6,892	$ 7,307
Pie Five Franchising		3,970	3,521
Company-Owned Restaurants (Note 1)		4,254	15,233
Interest income		4	16
	Consolidated revenues	$ 15,120	$ 26,077

Depreciation and amortization:
Pizza Inn Franchising		$ -	$ -
Pie Five Franchising		-	-
Company-Owned Restaurants (Note 1)		459	1,964
	Combined	459	1,964
Corporate administration and other (Note 2)		415	470
	Depreciation and amortization	$ 874	$ 2,434

Gain/(Loss) from continuing operations before taxes:
Pizza Inn Franchising		$ 5,594	$ 5,952
Pie Five Franchising		2,623	2,140
Company-Owned Restaurants (Note 1)		(1,763)	(9,674)
	Combined	6,454	(1,582)
Corporate administration and other		(7,502)	(9,608)
	Loss from continuing operations before taxes	$ (1,048)	$ (11,190)

		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	$	14,566	$	25,807
Foreign countries		554		270
Consolidated total	$	15,120	$	26,077

A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 24, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

Description of Business:

Principles of Consolidation

Principles of Consolidation:

Reclassifications

Reclassifications:

Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

Cash and Cash Equivalents

Cash and Cash Equivalents:

Concentration of Credit Risk

Concentration of Credit Risk:

Inventories

Inventories:

Closed Restaurants and Discontinued Operations

Closed Restaurants and Discontinued Operations:

Property, Plant and Equipment

Property, Plant and Equipment:

Impairment of Long-Lived Asset and other Lease Charges

Impairment of Long-Lived Asset and other Lease Charges:

Accounts Receivable

Accounts Receivable:

Notes Receivable

Notes Receivable:

The principal balance outstanding on the notes receivable and expected principal collections for the next three years were as follows as of June 24, 2018 (in thousands):

Notes Receivable
2019	$ 712
2020	317
2021	486
		$ 1,515

Income Taxes

Income Taxes:

Pre-Opening Expense

Pre-Opening Expense:

Related Party Transactions

Related Party Transactions:

Revenue Recognition

Revenue Recognition:

Stock Options

Stock Options:

Restricted Stock Units

Restricted Stock Units:

Fair Value of Financial Instruments

Fair Value of Financial Instruments:

The carrying amounts of accounts receivable and accounts payable approximate fair value because of the short maturity of these instruments.

Advertising and Marketing Costs

Advertising and Marketing Costs:

Contingencies

Contingencies:

Use of Management Estimates

Use of Management Estimates:

Fiscal Year

Fiscal Year:

The Company's fiscal year ends on the last Sunday in June. The fiscal years ended June 24, 2018 and June 25, 2017 both contained 52 weeks.

Discontinuation of Norco Distribution Division

Discontinuation of Norco Distribution Division:

A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 24, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of notes receivable

The principal balance outstanding on the notes receivable and expected principal collections for the next three years were as follows as of June 24, 2018 (in thousands):

Notes Receivable
2019	$ 712
2020	317
2021	486
		$ 1,515

B. PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Jun. 24, 2018

Property, Plant and Equipment [Abstract]

Schedule of Property, and plant and equipment

Property, and plant and equipment consist of the following (in thousands):

	Estimated Useful	June 24,			June 25,
	Lives	2018			2017

Equipment, furniture and fixtures	3 - 7 yrs	$	1,090		$	4,791
Software	5 yrs		778			1,143
Leasehold improvements	10 yrs or lease term, if shorter		1,033			3,949
			2,901			9,883
Less: accumulated depreciation/amortization			(1,391	)		(6,075	)
		$	1,510		$	3,808

Schedule of Intangible Assets

		June 24, 2018							June 25, 2017
	Estimated Useful	Acquisition		Accumulated			Net		Acquisition		Accumulated			Net
	Lives	Cost		Amortization			Value		Cost		Amortization			Value

Trademarks and tradenames	10 years	$	264	$	(127	)	$	137	$	261	$	(101	)	$	160
Name change	15 years		70		(16	)		54		70		(11	)		59
Prototypes	5 years		218		(197	)		21		208		(188	)		20
		$	552	$	(340	)	$	212	$	539	$	(300	)	$	239

C. ACCRUED EXPENSES (Tables)

12 Months Ended

Jun. 24, 2018

Accrued Liabilities and Other Liabilities [Abstract]

Schedule of Accrued expenses

		June 24,		June 25,
		2018		2017
Compensation	$	654	$	836
Other		404		254
Professional fees		43		167
Insurance loss reserves		8		8

	$	1,109	$	1,265

E. INCOME TAXES (Tables)

12 Months Ended

Jun. 24, 2018

Income Tax Disclosure [Abstract]

Schedule of Provision for income taxes

	Fiscal Year Ended
	June 24,			June 25,
	2018			2017
Current - Federal	$	(33	)	$	—
Current - Foreign		51			—
Current - State		30			53
Deferred - Federal		—			—
Deferred - State		—			—
Provision for income taxes	$	48		$	53

Schedule of Effective Income Tax Rate Reconciliation

	June 24,			June 25,
	2018			2017
Federal income taxes blended statutory rate of 27.64% of pre-tax loss	$	(291	)	$(4,119)
State income tax, net of federal effect		51		35
Foreign taxes		30		-
Permanent adjustments		35		24
Rate change		3,416		-
Valuation allowance		(6,597	)	4,019
Other		34		94
	$	(3,322	)	$53

Schedule of Deferred Tax Assets

June 24,			June 25,
	2018			2017


Current
Reserve for bad debt	$	36		$	89
Deferred fees		15			27
Other reserves and accruals		562			1,323
		613			1,439
Non Current
Credit carryforwards		153			199
Net operating loss carryforwards		5,122			4,799
Depreciable assets		17			2,585

Total gross deferred tax asset		5,905			9,022

Valuation allowance		(2,426	)		(9,022	)

Net deferred tax asset	$	3,479		$	—

F. LEASES (Tables)

12 Months Ended

Jun. 24, 2018

Leases [Abstract]

Schedule of Future Minimum Lease rental payments

<BTB>		Operating
<S>		Leases

2019	$	2,007
2020		2,024
2021		2,091
2022		2,035
2023		1,833
Thereafter		4,264
	$	14,254

Schedule of Future minimum sublease rental income

		Sublease Rental Income

2019	$	162
2020		168
2021		174
2022		175
2023		177
Thereafter		181
	$	1,037

Schedule of Rental expense

	Fiscal Year Ended
	Year Ended			Year Ended
	June 24,			June 25,
	2018			2017

Minimum rentals	$	1,114		$	1,878
Sublease rentals		(161	)		(129	)
	$	953		$	1,749

H. STOCK BASED COMPENSATION PLANS (Tables)

12 Months Ended

Jun. 24, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Summary of Outstanding Stock Options

	Twelve Months Ended
		June 24, 2018				June 25, 2017
				Weighted-					Weighted-
				Average					Average
				Exercise					Exercise
		Shares		Price		Shares			Price
Outstanding at beginning of year			478,056	$	4.16		847,556		$	3.77

Granted			—		—		50,000		$	3.95
Exercised			—		—		(315,000	)	$	2.56
Forfeited/Canceled/Expired			—		—		(104,500	)	$	5.67

Outstanding at end of period			478,056	$	4.16		478,056		$	4.16

Exercisable at end of year			478,056	$	4.16		388,056		$	3.54

Weighted-average fair value of
options granted during the year					—					1.11

Total intrinsic value of				$	—				$	806,400
options exercised

Stock options by exercise price range

	Options Outstanding			Options Exercisable
		Weighted-
		Average
	Options	Remaining	Weighted-	Shares	Weighted-
Range of	Outstanding	Contractual	Average	Exercisable	Average
Exercise Prices	at Jun 24, 2018	Life (Years)	Exercise Price	at Jun 24, 2018	Exercise Price

$1.55 - 1.95	81,306	1.1	$1.90	81,306	$1.90
$1.96 - 2.35	90,000	0.0	$2.32	90,000	$2.32
$2.36 - 2.75	40,000	3.0	$2.71	40,000	$2.71
$2.76 - 3.30	55,000	4.0	$3.11	55,000	$3.11
$3.31 - 3.95	50,000	8.0	$3.95	50,000	$3.95
$5.51 - 5.74	8,664	5.0	$5.74	8,664	$5.74
$5.95 - 6.25	128,800	5.9	$6.07	128,800	$6.07
$6.26 - 13.11	24,286	7.0	$13.11	24,286	$13.11
	478,056	3.8	$4.16	478,056	$4.16

Schedule of Stock Options weighted average Valuation Assumptions

	Fiscal Year Ended
	June 24,		June 25,
	2018		2017
Expected life (in years)		n/a		5.5
Expected volatility		n/a		34.6	%
Risk-free interest rate		n/a		1.1	%
Expected forfeiture rate		n/a		61.8	%

Schedule of restricted stock units (Tables)

	June 24,			June 25,
	2018			2017
Outstanding at beginning of year		487,950			79,620
Granted during the year		488,723			536,310
Forfeited during the year		(68,380	)		(127,980	)
Outstanding at end of year		908,293			487,950

Vested at beginning of year		—			—
Vested during the year		—			—
Vested at end of year		—			—

Unvested at end of year		908,293			487,950

K. EARNINGS PER SHARE (Tables)

12 Months Ended

Jun. 24, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

	Fiscal Year Ended
	June 24,			June 25,
	2018			2017
Income/(loss) from continuing operations	$	2,274		$	(11,243	)
Loss from discontinued operations		(362	)		(1,248	)
Net income/(loss) available to common stockholders	$	1,912		$	(12,491	)
Interest saved on Notes of $2,258.4 at 4%	$	90		$	—
Adjusted net income/(loss)	$	2,002		$	(12,491	)

BASIC:
Weighted average common shares		13,854			10,617

Income/(loss) from continuing operations per common share	$	0.17		$	(1.06	)
Loss from discontinued operations per common share		(0.03	)		(0.12	)
Net income/(loss) per common share	$	0.14		$	(1.18	)

DILUTED:
Weighted average common shares		13,854			10,617
Convertible Notes		1,129			—
Dilutive stock options		—			—
Weighted average common shares outstanding		14,983			10,617


Income/(loss) from continuing operations per common share	$	0.16		$	(1.06	)
Loss from discontinued operations per common share		(0.03	)		(0.12	)
Net income/(loss) per common share	$	0.13		$	(1.18	)

L. SEGMENT REPORTING (Tables)

12 Months Ended

Jun. 24, 2018

Segment Reporting [Abstract]

Segment Reporting Detail

		Fiscal Year Ended
		June 24,	June 25,
		2018	2017
Net sales and operating revenues:
Pizza Inn Franchising		$ 6,892	$ 7,307
Pie Five Franchising		3,970	3,521
Company-Owned Restaurants (Note 1)		4,254	15,233
Interest income		4	16
	Consolidated revenues	$ 15,120	$ 26,077

Depreciation and amortization:
Pizza Inn Franchising		$ -	$ -
Pie Five Franchising		-	-
Company-Owned Restaurants (Note 1)		459	1,964
	Combined	459	1,964
Corporate administration and other (Note 2)		415	470
	Depreciation and amortization	$ 874	$ 2,434

Gain/(Loss) from continuing operations before taxes:
Pizza Inn Franchising		$ 5,594	$ 5,952
Pie Five Franchising		2,623	2,140
Company-Owned Restaurants (Note 1)		(1,763)	(9,674)
	Combined	6,454	(1,582)
Corporate administration and other		(7,502)	(9,608)
	Loss from continuing operations before taxes	$ (1,048)	$ (11,190)

A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Notes Receivable)) $ in Thousands	Jun. 25, 2019 USD ($)
Notes receivable, net	$ 1,515
Due in 2019 [Member]
Notes receivable, net	712
Due in 2020 [Member]
Notes receivable, net	317
Due in 2021 [Member]
Notes receivable, net	$ 486

A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Impairment of long-lived assets	$ 894	$ 5,877
Valuation allowance	(2,426)	(9,022)
Valuation allowance increase	(6,597)	(4,019)
Income tax expense, state taxes	51	39
Net operating loss carryforwards	$ 23,500
Operating Loss Carryforwards, Expiration Date	Dec. 31, 2032
Advertising and marketing costs	$ 700	800
Description of notes receivable maturity	Notes receivable mature at various dates through 2021 and bear interest at rates that range from 0.0% to 7.0% (3.9% weighted average rate at June 25, 2017).
Notes Receivable [Member]
Notes receivable, Current	$ 712	675
Notes receivable, Noncurrent	$ 803	$ 127

B. PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Property, and plant and equipment,Gross	$ 2,901	$ 9,883
Less: accumulated depreciation/amortization	(1,391)	(6,075)
Property, and plant and equipment, Net	$ 1,510	3,808
Trademarks and tradenames [Member]
Estimated Useful Life	10 yrs
Leasehold Improvements [Member]
Estimated Useful Life	10 yrs or lease term, if shorter
Property, and plant and equipment,Gross	$ 1,033	3,949
Equipment, furniture and fixtures [Member]
Estimated Useful Life	3 - 7 yrs
Property, and plant and equipment,Gross	$ 1,090	4,791
Software [Member]
Property, and plant and equipment,Gross	$ 778	$ 1,143

B. PROPERTY, PLANT AND EQUIPMENT - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Acquisition Cost	$ 552	$ 539
Accumulated Amortization	(340)	(300)
Net Value	$ 212	$ 239
Trademarks and Trade Names
Estimated Useful Life	10 years	10 years
Acquisition Cost	$ 264	$ 261
Accumulated Amortization	(127)	(101)
Net Value	$ 137	$ 160
Name Change
Estimated Useful Life	15 years	15 years
Acquisition Cost	$ 70	$ 70
Accumulated Amortization	(16)	(11)
Net Value	$ 54	$ 59
Prototypes
Estimated Useful Life	5 years	5 years
Acquisition Cost	$ 218	$ 208
Accumulated Amortization	(197)	(188)
Net Value	$ 21	$ 20

B. PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 835	$ 2,410

C. ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Jun. 24, 2018	Jun. 25, 2017
Accrued Liabilities, Current [Abstract]
Compensation	$ 654	$ 836
Other	404	254
Professional fees	43	167
Insurance loss reserves	8	8
Accrued expenses	$ 1,109	$ 1,265

D. CONVERTIBLE NOTES (Details Narrative) $ in Thousands	12 Months Ended
D. CONVERTIBLE NOTES (Details Narrative) $ in Thousands	Jun. 24, 2018 USD ($)
Debt Disclosure [Abstract]
Beneficial conversion feature	$ 100
Agregate of beneficial conversion feature note issuance cost	$ 200

E. INCOME TAXES (Details - Provision for income taxes) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Income Tax Disclosure [Abstract]
Current - Federal	$ (33)
Current - Foreign	51
Current - State	30	53
Deferred - Federal
Deferred - State
Income tax expense / (benefit)	$ (3,322)	$ 53

E. INCOME TAXES (Details - Reconciliation) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Income Tax Disclosure [Abstract]
Federal income taxes based on 27.64% of pre-tax loss	$ (291)	$ (4,119)
State income tax, net of federal effect	51	35
Foreign Taxes	30
Permanent adjustments	35	24
Rate change	3,416
Valuation Allowance	(6,597)	4,019
Other	34	94
Income tax expense / (benefit)	$ 48	$ 53

E. INCOME TAXES (Details - Deferred tax assets) - USD ($) $ in Thousands	Jun. 24, 2018	Jun. 25, 2017
Current
Reserve for bad debt	$ 36	$ 89
Deferred fees	15	27
Other reserves and accruals	562	1,323
Deferred Tax Assets Inventory	613	1,439
Non Current
Credit carryforwards	153	199
Net operating loss carryforwards	5,122	4,799
Depreciable assets	17	2,585
Total gross deferred tax asset	5,905	9,022
Valuation allowance	(2,426)	(9,022)
Net deferred tax asset	$ 3,479

E. INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Income Tax Disclosure [Abstract]
Net operating loss carryforwards	$ 23,500
Operating Loss Carryforwards, Expiration Date	Dec. 31, 2032
Valuation allowance increase	$ (6,597)	$ (4,019)
Valuation allowance	$ (2,426)	$ (9,022)

F. LEASES (Details - Operating lease) $ in Thousands	Jun. 24, 2018 USD ($)
Operating Leases
2019	$ 2,007
2020	2,024
2021	2,091
2022	2,035
2023	1,833
Thereafter	4,264
Total	$ 14,254

F. LEASES (Details - Sublease Rental Income) $ in Thousands	Jun. 24, 2018 USD ($)
Sublease Rental Income
2019	$ 162
2020	168
2021	174
2022	175
2023	177
Thereafter	181
Total	$ 1,037

F. LEASES (Details - Rent expense) - USD ($) $ in Thousands	12 Months Ended
F. LEASES (Details - Rent expense) - USD ($) $ in Thousands	Jun. 24, 2018	Jun. 25, 2017
Commitments and Contingencies Disclosure [Abstract]
Minimum rentals	$ 1,114	$ 1,878
Sublease rentals	(161)	(129)
Rent expense	$ 953	$ 1,749

G. EMPLOYEE BENEFITS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
G. Employee Benefits
Employee benefits	$ 44	$ 40

H. STOCK BASED COMPENSATION PLANS (Details - Option activity) - USD ($)	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Number of shares
Number of Stock Options Outstanding, beginning of year	478,056	847,556
Number of Stock Options Granted	0	50,000
Number of Stock Options Exercised	0	(315,000)
Number of Stock Options Forfeited/Canceled/Expired	0	(104,500)
Number of Stock Options Outstanding, end of Year	478,056	478,056
Weighted Average Exercise Price per share
Exercise Price Outstanding, beginning of year	$ 4.16	$ 3.77
Exercise Price Granted	0	3.95
Exercise Price Exercised	0	2.56
Exercise Price Forfeited/Canceled/Expired	0	5.67
Exercise Price Outstanding, end of year	0	4.16
Exercise Price Options exercisable at end of year	0	3.54
Weighted-average fair value of options granted during the year	$ 0	$ 1.11
Total intrinsic value of options exercised	$ 0	$ 806,400

H. STOCK BASED COMPENSATION PLANS (Details - Option information)	Jun. 24, 2018 yr $ / shares shares
$1.55 - 1.95 [Member]
Options Outstanding	81,306
Weighted Average Remaining Contractual Life (yrs) \| yr	1.1
Options Exercisable	81,306
Weighted Average Exercise Price \| $ / shares	$ 1.90
$1.96 - 2.35 [Member]
Options Outstanding	90,000
Weighted Average Remaining Contractual Life (yrs) \| yr	0.0
Options Exercisable	90,000
Weighted Average Exercise Price \| $ / shares	$ 2.32
$2.36 - 2.75 [Member]
Options Outstanding	40,000
Weighted Average Remaining Contractual Life (yrs) \| yr	3.0
Options Exercisable	40,000
Weighted Average Exercise Price \| $ / shares	$ 2.71
$2.76 - 3.30 [Member]
Options Outstanding	55,000
Weighted Average Remaining Contractual Life (yrs) \| yr	4.0
Options Exercisable	55,000
Weighted Average Exercise Price \| $ / shares	$ 3.11
$3.31 - 3.95 [Member]
Options Outstanding	50,000
Weighted Average Remaining Contractual Life (yrs) \| yr	8.0
Weighted Average Exercise Price \| $ / shares	$ 3.95
$5.51 - 5.74 [Member]
Options Outstanding	8,664
Weighted Average Remaining Contractual Life (yrs) \| yr	5.0
Options Exercisable	8,664
Weighted Average Exercise Price \| $ / shares	$ 5.74
$5.95 - 6.25 [Member]
Options Outstanding	128,800
Weighted Average Remaining Contractual Life (yrs) \| yr	5.9
Options Exercisable	128,800
Weighted Average Exercise Price \| $ / shares	$ 6.07
$6.26 - 13.11 [Member]
Options Outstanding	24,286
Weighted Average Remaining Contractual Life (yrs) \| yr	7.0
Options Exercisable	24,286
Weighted Average Exercise Price \| $ / shares	$ 13.11
Stock Options [Member]
Options Outstanding	478,056
Weighted Average Remaining Contractual Life (yrs) \| yr	3.8
Options Exercisable	478,056
Weighted Average Exercise Price \| $ / shares	$ 4.16

H. STOCK BASED COMPENSATION PLANS (Details - Assumptions)	12 Months Ended
	Jun. 25, 2017
Share-based Compensation [Abstract]
Expected life (in years)	5 years 6 months
Expected volatility	34.60%
Risk-free interest rate	1.10%
Expected forfeiture rate	61.80%

H. STOCK BASED COMPENSATION PLANS (Details - RSU activity) - shares	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Number of RSU's Shares
Balance of RSU's, at beginning of year	487,950	79,620
Granted	488,723	536,310
Forfeited	(68,380)	(127,980)
Balance of RSU's, ending	908,293	487,950
Vested at beginning of year	0	0
Vested during the year	0	0
Vested at end of year	0	0
Unvested at end of year	908,293	487,950

H. STOCK BASED COMPENSATION PLANS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
H. Stock Based Compensation Plans
Weighted average remaining period of unvested awards	3 years 292 days
Stock compensation expense	$ 115	$ 58
Unrecognized compensation cost related to unvested stock options	$ 0
Weighted average grant date fair value of unvested options	$ 0
Purchase of unvested option	0
Restricted stock units granted	488,723	536,310
Grant date fair value of the restricted stock units	$ 1.27

I. SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Repurchase of shares
Shares available to repurchase under plan	848,425
Administrative Fees and Expense Reimbursement		$ 21
2014 ATM Offering Member
Shares sold	0	0

K. EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Earnings Per Share [Abstract]
Gain / (Loss) from continuing operations	$ 2,274	$ (11,243)
Discontinued operations	(362)	(1,248)
Gain / Net loss available to common stockholders	1,912	(12,491)
Interest Saved on Notes of $2258 at 4%	90
Adjusted net income/(loss)	$ 2,002
BASIC:
Weighted average common shares	13,854	10,617
Income / Loss from continuing operations per common share	$ 0.17	$ (1.06)
Discontinued operations per common share	(0.03)	(0.12)
Net loss per common share	$ 0.14	$ (1.18)
DILUTED:
Weighted average common shares	13,854	10,617
Convertible Notes	$ 1,129
Stock options
Weighted average common shares outstanding	14,983	10,617
Income / (Loss) from continuing operations per common share	$ 0.16	$ (1.06)
Discontinued operations per common share	(0.03)	(0.12)
Net loss per common share	$ 0.13	$ (1.18)

L. SEGMENT REPORTING (Details - Segment Reporting) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Net sales and operating revenues:	$ 15,120	$ 26,077
Interest income	4	16
Depreciation and amortization:	835	2,410
Gain/(Loss) from continuing operations before taxes:	(1,048)	(11,190)
Pizza Inn Franchising
Net sales and operating revenues:	6,892	7,307
Depreciation and amortization:
Gain/(Loss) from continuing operations before taxes:	5,594	5,952
Pie Five Franchising
Net sales and operating revenues:	3,970	3,521
Depreciation and amortization:
Gain/(Loss) from continuing operations before taxes:	2,623	2,140
Company-owned restaurants (1)
Net sales and operating revenues:	4,254	15,233
Depreciation and amortization:	459	1,964
Gain/(Loss) from continuing operations before taxes:	(1,763)	(9,674)
Corporate administration and other
Depreciation and amortization:	415	470
Gain/(Loss) from continuing operations before taxes:	(7,502)	(9,608)
Combined
Depreciation and amortization:	459	1,964
Gain/(Loss) from continuing operations before taxes:	$ 6,454	$ (1,582)

L. SEGMENT REPORTING (Details - Geographic information revenues) - USD ($) $ in Thousands	12 Months Ended
	Jun. 24, 2018	Jun. 25, 2017
Revenues	$ 15,120	$ 26,077
Foreign countries
Revenues	554	270
UNITED STATES
Revenues	$ 14,566	$ 25,807