Noble Romans (NROM) 10-Q14 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2023	Nov. 10, 2023
Cover [Abstract]
Entity Registrant Name	NOBLE ROMAN’S, INC.
Entity Central Index Key	0000709005
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Entity Common Stock Shares Outstanding		22,215,512
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	0-11104
Entity Incorporation State Country Code	IN
Entity Tax Identification Number	35-1281154
Entity Address Address Line 1	6612 E
Entity Address Address Line 2	75th Street
Entity Address Address Line 3	Suite 450
Entity Address City Or Town	Indianapolis
Entity Address State Or Province	IN
Entity Address Postal Zip Code	46250
City Area Code	317
Local Phone Number	634-3377
Entity Interactive Data Current	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash	$ 563,646	$ 785,522
Employee Retention Tax Credit Receivable	507,726	0
Accounts receivable - net	809,807	824,091
Inventories	942,763	997,868
Prepaid expenses	691,317	424,822
Total current assets	3,515,259	3,032,303
Property and equipment:
Equipment	4,369,954	4,351,558
Leasehold improvements	3,127,880	3,116,030
Construction and equipment in progress	62,632	63,097
Property, Plant and Equipment, Gross	7,560,466	7,530,685
Less accumulated depreciation and amortization	3,104,026	2,817,477
Net property and equipment	4,456,440	4,713,208
Deferred tax asset	3,100,651	3,374,841
Deferred contract cost	1,121,826	934,036
Goodwill	278,466	278,466
Operating lease right of use assets	5,123,819	5,660,155
Other assets including long-term portion of receivables - net	395,935	350,189
Total assets	17,992,396	18,343,198
Current liabilities:
Accounts payable and accrued expenses	192,440	650,582
Current portion of operating lease liability	799,164	799,164
Current portion of Corbel loan payable	1,000,000	866,667
Total current liabilities	1,991,604	2,316,413
Long-term obligations:
Term loan payable to Corbel - net of current portion	6,467,678	7,470,900
Corbel warrant value	29,037	29,037
Convertible notes payable	575,000	622,864
Operating lease liabilities - net of current portion	4,574,360	5,103,286
Deferred contract income	1,121,826	934,036
Total long-term liabilities	12,767,900	14,160,123
Stockholders' equity:
Common stock - no par value (40,000,000 shares authorized, 22,215,512 issued and outstanding as of December 31, 2022 and as of September 30, 2023)	24,837,605	24,819,736
Accumulated deficit	(21,604,713)	(22,953,074)
Total stockholders' equity	3,232,892	1,866,662
Total liabilities and stockholders' equity	$ 17,992,396	$ 18,343,198

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Condensed Consolidated Balance Sheets
Common Stock, Par Value	$ 0	$ 0
Common Stock, Authorized Shares	40,000,000	40,000,000
Common Stock, Issued Shares	22,215,512	22,215,512
Common Stock, Outstanding Shares	22,215,512	22,215,512

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue:
Restaurant revenue - company-owned restaurants	$ 2,175,219	$ 2,587,182	$ 6,639,213	$ 7,374,143
Restaurant revenue - company-owned non-traditional	247,252	195,647	707,217	505,891
Franchising revenue	1,310,284	1,119,793	3,671,160	3,218,401
Administrative fees and other	6,657	5,961	22,068	25,226
Total revenue	3,739,412	3,908,583	11,039,658	11,123,661
Operating expenses:
Restaurant expenses - company-owned restaurants	1,974,635	2,195,261	5,914,648	6,416,678
Restaurant expenses - company-owned non-traditional	240,245	201,013	566,225	503,639
Franchising expenses	395,777	499,478	(36,255)	1,444,073
Total operating expenses	2,610,657	2,895,752	6,444,618	8,364,391
Depreciation and amortization	95,517	112,555	286,550	337,994
General and administrative expenses	519,291	518,466	1,564,433	1,598,689
Total expenses	3,225,465	3,526,723	8,295,602	10,301,074
Operating income	513,947	381,860	2,744,056	822,587
Interest expense	359,431	378,008	1,121,505	1,067,605
Income (loss) before income taxes	154,516	3,852	1,622,551	(245,018)
Income tax expense (benefit)		0	274,190	(61,913)
Net income (loss)	$ 154,516	$ 3,852	$ 1,348,361	$ (183,105)
Earnings per share - basic:
Net income (loss) before income tax	$ 0.01	$ 0	$ 0.07	$ (0.01)
Net income (loss)	$ 0.01	$ 0	$ 0.06	$ (0.01)
Weighted average number of common shares Outstanding	22,215,512	22,215,512	22,215,512	22,215,512
Diluted earnings per share:
Net income (loss) before income tax 1	$ 0.01	$ 0	$ 0.07	$ (0.01)
Net income (loss) 1	$ 0.01	$ 0	$ 0.06	$ (0.01)
Weighted average number of common shares outstanding 1	23,581,300	23,513,954	23,581,300	23,513,954

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders Equity (Unaudited) - USD ($)	Total	Common Stock	Accumulated Deficit [Member]
Balance, shares at Dec. 31, 2021		22,215,512
Balance, amount at Dec. 31, 2021	$ 2,894,564	$ 24,791,568	$ (21,897,004)
Net loss for nine months ended September 30, 2022	(183,105)		(183,105)
Amortization of value of employee stock options	22,139	$ 22,139
Balance, shares at Sep. 30, 2022		22,215,512
Balance, amount at Sep. 30, 2022	2,733,598	$ 24,813,707	(22,080,109)
Balance, shares at Jun. 30, 2022		22,215,512
Balance, amount at Jun. 30, 2022	2,723,718	$ 24,807,679	(22,083,961)
Net loss for nine months ended September 30, 2022	3,852		3,852
Amortization of value of employee stock options	6,028	$ 6,028
Balance, shares at Sep. 30, 2022		22,215,512
Balance, amount at Sep. 30, 2022	2,733,598	$ 24,813,707	(22,080,109)
Balance, shares at Dec. 31, 2022		22,215,512
Balance, amount at Dec. 31, 2022	1,866,662	$ 24,819,736	(22,953,074)
Net loss for nine months ended September 30, 2022	1,348,361		1,348,361
Amortization of value of employee stock options	17,869	$ 17,869
Balance, shares at Sep. 30, 2023		22,215,512
Balance, amount at Sep. 30, 2023	3,232,892	$ 24,837,605	(21,604,713)
Balance, shares at Jun. 30, 2023		22,215,512
Balance, amount at Jun. 30, 2023	3,073,298	$ 24,832,525	(21,759,227)
Net loss for nine months ended September 30, 2022	154,514		154,514
Amortization of value of employee stock options	5,080	$ 5,080
Balance, shares at Sep. 30, 2023		22,215,512
Balance, amount at Sep. 30, 2023	$ 3,232,892	$ 24,837,605	$ (21,604,713)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Condensed Consolidated Statements of Cash Flows (Unaudited)
Net income (loss)	$ 1,348,361	$ (183,105)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	635,176	707,040
Amortization of lease cost in excess of cash paid	6,462	14,821
Deferred income taxes	274,190	(61,913)
(Increase) decrease in:
Employee Retention Tax Credit	(507,726)
Accounts receivable	14,284	(126,589)
Inventories	55,105	(17,750)
Prepaid expenses	(266,495)	(56,337)
Other assets including long-term portion of receivables	(45,746)	(82,714)
(Decrease) in:
Accounts payable and accrued expenses	(458,142)	(170,512)
NET CASH PROVIDED BY OPERATING ACTIVITIES	1,055,469	22,941
INVESTING ACTIVITIES
Purchase of property and equipment	(29,781)	(543,465)
NET CASH USED IN INVESTING ACTIVITIES	(29,781)	(543,465)
FINANCING ACTIVITIES
Principal payment of convertible notes	(50,000)
Principal payments on Corbel term loan	(1,198,510)
Lease liabilities	946
NET CASH USED BY FINANCING ACTIVITIES	(1,247,564)
Increase (decrease) in cash	(221,876)	(520,524)
Cash at beginning of period	785,522	1,263,513
Cash at end of period	563,646	742,989
Supplemental schedule of investing and financing activities
Cash paid for interest	$ 793,692	$ 720,697

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Basis of Presentation and Summary of Significant Accounting Policies
Basis Of Presentation And Summary Of Significant Accounting Policies	Note 1 - The accompanying unaudited interim condensed consolidated financial statements, included herein, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated statements have been prepared in accordance with the Company’s accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and should be read in conjunction with the audited consolidated financial statements and the notes thereto included in that report. Unless the context indicates otherwise, references to the “Company” mean Noble Roman’s, Inc. and its subsidiaries. In the opinion of the management of the Company, the information contained herein reflects all adjustments necessary for a fair presentation of the results of operations and cash flows for the interim periods presented and the financial condition as of the dates indicated, which adjustments are of a normal recurring nature. The results for the three-month and nine-month periods ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year ending December 31, 2023. Significant Accounting Policies The Employee Retention Tax Credit (“ERTC”) is a refundable tax credit that the Company was eligible to apply for based on qualified wages paid to employees. The program was introduced on March 27, 2020 in the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to incentivize employers to keep their employees on their payroll during the pandemic and economic shutdown. The credit applies to all qualified wages, including certain health plan expenses, paid during the period in which the operations were fully or partially suspended due to a government shutdown order or where there was significant decline in gross receipts. During the first quarter of 2023 the Company determined that it was entitled to an ERTC of $1.718 million and submitted amended federal Form 941 returns for the last three quarters of 2020 and the first two quarters of 2021 for both Noble Roman’s, Inc. (“Noble Roman’s”) and RH Roanoke, Inc. (“Roanoke”) claiming those refunds. The Company recognized an ERTC refund of $1.460 million, net of related expense of $258,000 in the first quarter of 2023. During July 2023, the Company received refunds for Roanoke for all five quarters and Noble Roman’s received all three quarters of 2020 and the second quarter of 2021. In total, in July 2023 the Company received payments totaling $1.16 million net of commissions plus interest. The Company expects to receive approximately $507,000 additional ERTC refund for the first quarter of 2021. There have been no other significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K.

Royalties and Fees

Royalties and Fees	9 Months Ended
Royalties and Fees	Sep. 30, 2023
Royalties and Fees
Royalties And Fees	Note 2 – Royalties and fees included initial franchise fees of $327,500 and $609,500 for the three-month and nine-month periods ended September 30, 2023, and $60,500 and $203,500 for the three-month and nine-month periods ended September 30, 2022. Royalties and fees included equipment commissions of $62,950 and $115,700 for the three-month and nine-month periods ended September 30, 2023, and $12,500 and $41,300 for the three-month and nine-month periods ended September 30, 2022. Royalties and fees, including amortized initial franchise fees and equipment commissions, were $919,800 and $2.89 million for the three-month and nine-month periods ended September 30, 2023, and $1.1 million and $3.2 million for the three-month and nine-month periods ended September 30, 2022. Most of the cost for the services required to be performed by the Company are incurred prior to the franchise fee income being recorded, which is based on a contractual liability of the franchisee. The effect on comparable periods within the financial statements by recording franchise fees and cost of opening the units as deferred contract costs and deferred contract income is not material as the initial franchise fee for the non-traditional franchise is intended to defray the initial contract costs, and the franchise fees and contract costs initially incurred and paid approximate the relative amortized franchise fees and contract costs for those same periods. The deferred contract income and deferred costs were $1.12 million as of September 30, 2023. At December 31, 2022 and September 30, 2023, the carrying value of the Company’s franchise receivables have been reduced to anticipated realizable value. As a result of this reduction of carrying value, the Company anticipates that substantially all of its accounts receivable reflected on the consolidated balance sheets as of December 31, 2022 and September 30, 2023, will be collected. In 2020, in light of the additional uncertainty created as a result of the COVID-19 pandemic, the Company created a reserve for uncollectability on all long-term franchisee receivables. The Company will continue to pursue collection where circumstances are appropriate and all collections of these receivables in the future will result in additional royalty income at the time received or activity occurring which demonstrates probability of collection. During the nine-month period ended September 30, 2023, there were no company-operated or franchised Craft Pizza & Pub restaurants opened or closed. During this period, there were 40 new non-traditional outlets opened and 6 non-traditional outlets closed.

Earnings (Loss) per Share

Earnings (Loss) per Share	9 Months Ended
Earnings (Loss) per Share	Sep. 30, 2023
Earnings (Loss) per Share
Earnings (loss) Per Share	Note 3 - The following table sets forth the calculation of basic and diluted earnings per share for the three-month and nine-month periods ended September 30, 2023: Three Months Ended September 30, 2023 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 154,516 22,215,512 $ 0.01 Effect of dilutive securities Stock dilution 115,778 Convertible notes 14,375 1,250,000 Diluted earnings per share Net income $ 168,891 23,581,290 $ 0.01 Nine Months Ended September 30, 2023 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 1,348,359 22,215,512 $ 0.06 Effect of dilutive securities Stock dilution 115,788 Convertible notes 44,375 1,250,000 Diluted earnings per share Net income $ 1,392,734 23,581,300 $ 0.06 The following table sets forth the calculation of basic and diluted earnings (loss) per share for the three-month and nine-month periods ended September 30, 2022: Three Months Ended September 30, 2022 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 3,852 22,215,512 $ 0.00 Effect of dilutive securities Stock dilution - 48,442 Convertible notes 15,625 1,250,000 Diluted earnings per share Net loss $ 19,477 23,513,954 $ 0.00 Nine Months Ended September 30, 2022 Income (Numerator) Shares (Denominator) Per-Share Amount Net loss $ (183,105 ) 22,215,512 $ (0.01 ) Effect of dilutive securities Stock dilution - 48,442 Convertible notes 46,875 1,250,000 Diluted earnings per share Net income $ (136,230 ) 23,513,954 $ (0.01 )

Notes Payable

Notes Payable	9 Months Ended
Notes Payable	Sep. 30, 2023
Notes Payable
Notes Payable	Note 4 – On February 7, 2020, the Company entered into a Senior Secured Promissory Note and Warrant Purchase Agreement (as amended, the “Agreement”) with Corbel Capital Partners SBIC, L.P. (the “Purchaser” or “Corbel”). Pursuant to the Agreement, the Company issued to the Purchaser a senior secured promissory note (the “Senior Note”) in the initial principal amount of $8.0 million. The Company used the net proceeds of the Agreement as follows: (i) $4.2 million to repay the Company’s then-existing bank debt which was in the original amount of $6.1 million; (ii) $1,275,000 to repay the portion of the Company’s existing subordinated convertible debt the maturity date of which most had not previously been extended; (iii) to pay debt issuance costs; and (iv) the remaining net proceeds for working capital and other general corporate purposes, including development of new Company-owned Craft Pizza & Pub locations. The Senior Note bears cash interest of LIBOR, as defined in the Agreement, plus 7.75%. In addition, the Senior Note requires payment-in-kind (“PIK”) interest of 3% per annum, which is added to the principal amount of the Senior Note. Interest is payable in arrears on the last calendar day of each month. The Senior Note matures on February 7, 2025. At the end of the third quarter 2022, the Company entered into an amendment to the Agreement changing the required payments of principal beginning in March 2023 from $33,333 per month to $83,333 per month in exchange for lowering the financial covenants and eliminating the excess cash flow requirement. In addition, SOFR, as defined in the Agreement, replaced LIBOR. In conjunction with the borrowing under the Senior Note, the Company issued to the Purchaser a warrant (the “Corbel Warrant”) to purchase up to 2,250,000 shares of Common Stock. The Corbel Warrant entitles the Purchaser to purchase from the Company, at any time or from time to time: (i) 1,200,000 shares of Common Stock at an exercise price of $0.57 per share (“Tranche 1”); (ii) 900,000 shares of Common Stock at an exercise price of $0.72 per share (“Tranche 2”); and (iii) 150,000 shares of Common Stock at an exercise price of $0.97 per share (“Tranche 3”). In an amendment on September 11, 2023, the exercise price of all three tranches was amended to $0.30 per share. Cashless exercise of the Corbel Warrant is only permitted with respect to Tranche 3. The Purchaser has the right, within six months after the issuance of any shares under the Corbel Warrant, to require the Company to repurchase such shares for cash or for Put Notes (as defined in the Agreement), at the Company’s discretion. The Corbel Warrant expires on the seventh anniversary of the date of its issuance.

Subsequent Event

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2023
Subsequent Event
Subsequent event	Note 5 – The Company evaluated subsequent events through the date the financial statements were issued and filed with SEC. On October 27, 2023, the Company entered into a Development Agreement with Majors Management, LLC for the development of 100 new non-traditional franchise locations. The Development Agreement requires the developer to have 31 locations open by June 30, 2024, 50 locations open by December 31, 2024, with the remainder of the 100 locations to be open by September 30, 2026. The new locations may be developed throughout the 48 contiguous states, however the concentration of those locations is expected to be in Texas, Alabama, Georgia and Tennessee. Impact of COVID-19 Pandemic In the first quarter of 2020, a novel strain of coronavirus (COVID-19) emerged and spread throughout the United States. The World Health Organization recognized COVID-19 as a pandemic in March 2020. In response to the pandemic, the U.S. federal government and various state and local governments, among other things, imposed travel and business restrictions, including stay-at-home orders and other guidelines that required restaurants and bars to close or restrict inside dining. The pandemic resulted in significant economic volatility, uncertainty and disruption, reduced commercial activity and weakened economic conditions in the regions in which the Company and its franchisees operate. The pandemic and the governmental response had a significant adverse impact on the Company, due to, among other things, governmental restrictions, reduced customer traffic, staffing challenges and supply difficulties especially as a result of the emergence of the Omicron and other variants of COVID-19 in late 2021 and early in 2022. Many states and municipalities in the United States, including Indiana where all of the Company-owned Craft Pizza & Pub restaurants are located, have from time to time temporarily restricted travel and suspended the operations of dine-in restaurants and other businesses in light of COVID-19 which negatively affected the Company’s operations. The Company can provide no assurance the phase out of restrictions will continue to have a positive effect on the Company’s business. Host facilities for the Company’s non-traditional franchises were also affected by labor shortages which adversely impacted those developments and in turn slowed the sales of franchises. The uncertainty and disruption in the U.S. economy caused by the pandemic are likely to continue to adversely impact the volume and resources of some potential franchisees for both the Company’s Craft Pizza & Pub and non-traditional venues. As described in Note 1 above, the Company applied for and has received payments in respect of the ERTC provided by the CARES Act enacted to address the economic effects of the pandemic and related shut-down orders imposed on businesses.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Basis of Presentation and Summary of Significant Accounting Policies
Significant Accounting Policies	The Employee Retention Tax Credit (“ERTC”) is a refundable tax credit that the Company was eligible to apply for based on qualified wages paid to employees. The program was introduced on March 27, 2020 in the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) to incentivize employers to keep their employees on their payroll during the pandemic and economic shutdown. The credit applies to all qualified wages, including certain health plan expenses, paid during the period in which the operations were fully or partially suspended due to a government shutdown order or where there was significant decline in gross receipts. During the first quarter of 2023 the Company determined that it was entitled to an ERTC of $1.718 million and submitted amended federal Form 941 returns for the last three quarters of 2020 and the first two quarters of 2021 for both Noble Roman’s, Inc. (“Noble Roman’s”) and RH Roanoke, Inc. (“Roanoke”) claiming those refunds. The Company recognized an ERTC refund of $1.460 million, net of related expense of $258,000 in the first quarter of 2023. During July 2023, the Company received refunds for Roanoke for all five quarters and Noble Roman’s received all three quarters of 2020 and the second quarter of 2021. In total, in July 2023 the Company received payments totaling $1.16 million net of commissions plus interest. The Company expects to receive approximately $507,000 additional ERTC refund for the first quarter of 2021. There have been no other significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K.

Earnings (Loss) per Share (Tabl

Earnings (Loss) per Share (Tables)	9 Months Ended
Earnings (Loss) per Share (Tables)	Sep. 30, 2023
Earnings (Loss) per Share
Basic And Diluted Earnings (loss) Per Share	Three Months Ended September 30, 2023 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 154,516 22,215,512 $ 0.01 Effect of dilutive securities Stock dilution 115,778 Convertible notes 14,375 1,250,000 Diluted earnings per share Net income $ 168,891 23,581,290 $ 0.01 Nine Months Ended September 30, 2023 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 1,348,359 22,215,512 $ 0.06 Effect of dilutive securities Stock dilution 115,788 Convertible notes 44,375 1,250,000 Diluted earnings per share Net income $ 1,392,734 23,581,300 $ 0.06 Three Months Ended September 30, 2022 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 3,852 22,215,512 $ 0.00 Effect of dilutive securities Stock dilution - 48,442 Convertible notes 15,625 1,250,000 Diluted earnings per share Net loss $ 19,477 23,513,954 $ 0.00 Nine Months Ended September 30, 2022 Income (Numerator) Shares (Denominator) Per-Share Amount Net loss $ (183,105 ) 22,215,512 $ (0.01 ) Effect of dilutive securities Stock dilution - 48,442 Convertible notes 46,875 1,250,000 Diluted earnings per share Net income $ (136,230 ) 23,513,954 $ (0.01 )

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative)	9 Months Ended
	Sep. 30, 2023 USD ($)
Basis of Presentation and Summary of Significant Accounting Policies
Federal grant on Employee Retention Tax Credit	$ 1,718,000
Net of commissions and interest payments	1,160,000
Net benefit or refund on Employee Retention Tax Credit	1,460,000
Additional Employee Retention Tax Credit	507,000
Expenses deducted on Employee Retention Tax Credit	$ 258,000

Royalties and Fees (Details Nar

Royalties and Fees (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
Royalties and Fees (Details Narrative) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Number of franchises/licenses in operation	$ 919,800	$ 1,100,000	$ 2,890,000	$ 3,200,000
Deferred contract income and deferred costs	1,120,000		1,120,000
Amortized Initial Franchise Fees and Equipment Commissions
Royalties And Fees	327,500	60,500	609,500	203,500
Equipment Commission
Royalties And Fees	$ 62,950	$ 12,500	$ 115,700	$ 41,300

Earnings (Loss) per Share (Deta

Earnings (Loss) per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
Earnings (Loss) per Share (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net income (loss)	$ 154,516	$ 3,852	$ 1,348,359	$ (183,105)
Weighted Average Number Of Common Shares Outstanding, Basic	22,215,512	22,215,512	22,215,512	22,215,512
Earnings Per Share, Basic	$ 0.01	$ 0	$ 0.06	$ (0.01)
Stock dilution	115,778	48,442	115,788	48,442
Diluted Earnings Per Share Net Loss	$ 168,891	$ 19,477	$ 1,392,734	$ (136,230)
Weighted Average Number Of Common Shares Outstanding	23,581,300	23,513,954	23,581,300	23,513,954
Net Income (loss)	$ 0.01	$ 0	$ 0.06	$ (0.01)
Convertible Note Payable
Effect Of Dilutive Securities	$ 14,375	$ 15,625	$ 44,375	$ 46,875
Shares Denominator	1,250,000	1,250,000	1,250,000	1,250,000

Note payable (Details Narrative

Note payable (Details Narrative)	Feb. 07, 2020 USD ($) $ / shares shares
Tranche 1 [Member]
Purchase Shares Of Common Stock \| shares	1,200,000
Exercise Price \| $ / shares	$ 0.57
Tranche 2 [Member]
Purchase Shares Of Common Stock \| shares	900,000
Exercise Price \| $ / shares	$ 0.72
Tranche 3 [Member]
Purchase Shares Of Common Stock \| shares	150,000
Exercise Price \| $ / shares	$ 0.97
Secured Promissory Note [Member]
Purchase Shares Of Common Stock \| shares	2,250,000
Bank Loan \| $	$ 8,000,000
Original Amount \| $	$ 6,100,000
Desription of amendment to the Agreement changing	the Company’s existing subordinated convertible debt the maturity date of which most had not previously been extended; (iii) to pay debt issuance costs; and (iv) the remaining net proceeds for working capital and other general corporate purposes, including development of new Company-owned Craft Pizza & Pub locations
Repayments Of Senior Debt \| $	$ 4,200,000
Convertible Debt \| $	$ 1,275,000
Interest Rate Per Annum	3%
Interest Rate	7.75%
Maturity Date	Feb. 07, 2025
Exercise Price \| $ / shares	$ 0.30