Noble Romans (NROM) 10-Q14 Aug 242024 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2024	Aug. 13, 2024
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	Jun. 30, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
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 ($)	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash	$ 801,071	$ 872,335
Employee Retention Tax Credit Receivable	507,725	507,726
Accounts receivable - net	696,691	1,169,446
Inventories	987,786	965,819
Prepaid expenses	200,184	318,195
Total current assets	3,193,457	3,833,521
Property and equipment:
Equipment	4,421,773	4,386,430
Leasehold improvements	3,139,215	3,130,430
Leasehold improvements, net	7,560,988	7,516,860
Less accumulated depreciation and amortization	3,389,558	3,196,993
Net property and equipment	4,171,430	4,319,867
Deferred tax asset	3,374,841	3,374,841
Deferred contract cost	1,426,578	1,403,299
Goodwill	278,466	278,466
Operating lease right of use assets	4,549,671	4,930,014
Other assets including long-term portion of receivables-net	354,546	339,817
Total assets	17,348,989	18,479,825
Current liabilities:
Accounts payable and accrued expenses	615,501	1,284,210
Current portion of operating lease liability	834,715	799,165
Current portion of Corbel loan payable	6,892,834	1,000,000
Subordinated note payable	575,000	0
Warrant liability	731,038	540,650
Total current liabilities	9,649,088	3,624,025
Long-term obligations:
Term loan payable to Corbel net of current portion	0	6,133,691
Convertible notes payable	0	575,000
Operating lease liabilities - net of short-term portion	3,951,744	4,378,927
Deferred contract income	1,580,910	1,577,299
Total long-term liabilities	5,532,654	12,664,917
Total liabilities	15,181,742	16,288,942
Stockholders' equity:
Common stock - no par value (40,000,000 shares authorized, 22,215,512 issued and outstanding as of December 31, 2023 and as of June 30, 2024)	24,846,109	24,840,126
Accumulated deficit	(22,678,862)	(22,649,243)
Total stockholders' equity	2,167,247	2,190,883
Total liabilities and stockholders' equity	$ 17,348,989	$ 18,479,825

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue:
Restaurant revenue - company-owned Craft Pizza & Pub	$ 2,222,551	$ 2,373,652	$ 4,218,075	$ 4,463,994
Restaurant revenue -company-owned non-traditional	236,705	236,585	474,852	459,965
Franchising revenue	1,435,748	1,176,629	2,861,039	2,163,972
Administrative fees and other	9,673	8,674	16,817	15,411
Total revenue	3,904,678	3,795,540	7,570,783	7,103,342
Operating expenses:
Restaurant expenses - company-owned Craft Pizza & Pub	1,978,273	2,025,193	3,809,717	3,940,014
Restaurant expenses - company-owned non-traditional	235,288	204,150	461,048	325,980
Franchising expenses (benefit)	460,694	240,010	950,361	(628,936)
Total operating expenses	2,674,255	2,469,353	5,221,126	3,637,058
Depreciation and amortization	96,300	95,517	192,565	191,033
General and administrative expenses	570,129	526,310	1,147,416	1,045,143
Defense against activist shareholder	6,064	0	19,542	0
Total expenses	3,346,748	3,091,180	6,580,649	4,873,234
Operating income	557,930	704,360	990,134	2,230,108
Interest expense	435,184	378,785	829,365	762,074
Change in fair value of warrants	65,888	0	190,388	0
Income (loss) before income taxes	56,858	325,575	(29,619)	1,468,034
Income tax	0	0	0	274,190
Net income (loss)	$ 56,858	$ 325,575	$ (29,619)	$ 1,193,844
Earnings per share - basic:
Net income (loss)	$ 0	$ 0.02	$ 0	$ 0.05
Weighted average number of common shares outstanding	22,215,512	22,215,512	22,215,512	22,215,512
Diluted earnings (loss) per share:
Net income (loss)	$ 0	$ 0.01	$ 0	$ 0.05
Weighted average number of common shares outstanding	23,713,531	23,498,764	22,215,512	23,498,764

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders Equity (Unaudited) - USD ($)	Total	Common Stock	Accumulated Deficit
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 income (loss) for the period	1,193,847		1,193,847
Amortization of value of employee stock options	12,789	$ 12,789	0
Balance, shares at Jun. 30, 2023		22,215,512
Balance, amount at Jun. 30, 2023	3,073,298	$ 24,832,525	(21,759,227)
Balance, shares at Mar. 31, 2023		22,215,512
Balance, amount at Mar. 31, 2023	2,741,327	$ 24,826,130	(22,084,803)
Net income (loss) for the period	325,576		325,576
Amortization of value of employee stock options	6,395	$ 6,395	0
Balance, shares at Jun. 30, 2023		22,215,512
Balance, amount at Jun. 30, 2023	3,073,298	$ 24,832,525	(21,759,227)
Balance, shares at Dec. 31, 2023		22,215,512
Balance, amount at Dec. 31, 2023	2,190,883	$ 24,840,126	(22,649,243)
Net income (loss) for the period	(29,619)		(29,619)
Amortization of value of employee stock options	5,983	$ 5,983	0
Balance, shares at Jun. 30, 2024		22,215,512
Balance, amount at Jun. 30, 2024	2,167,247	$ 24,846,109	(22,678,862)
Balance, shares at Mar. 31, 2024		22,215,512
Balance, amount at Mar. 31, 2024	2,107,397	$ 24,843,117	(22,735,720)
Net income (loss) for the period	56,858		56,858
Amortization of value of employee stock options	2,992	$ 2,992	0
Balance, shares at Jun. 30, 2024		22,215,512
Balance, amount at Jun. 30, 2024	$ 2,167,247	$ 24,846,109	$ (22,678,862)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
OPERATING ACTIVITIES
Net income (loss)	$ (29,619)	$ 1,193,844
Change in fair value of warrants	190,388	0
Depreciation and amortization	428,649	425,568
Amortization of lease costs in excess of cash paid	9,761	6,467
Deferred income taxes	0	274,190
Increase (decrease) in:
Employee Retention Tax Credit	0	(1,460,444)
Accounts receivable	472,755	18,167
Inventories	(21,967)	(7,397)
Prepaid expenses	118,011	14,110
Other assets	(14,729)	(39,452)
Decrease in deferred contact cost	(15,305)	0
(Increase) decrease in:
Accounts payable and accrued expenses	(668,707)	(78,501)
Decrease/increase in deferred contract income	3,627	0
NET CASH PROVIDED BY OPERATING ACTIVITIES	472,864	346,552
INVESTING ACTIVITIES
Purchase of property and equipment	(44,128)	(29,430)
NET CASH USED IN INVESTING ACTIVITIES	(44,128)	(29,430)
FINANCING ACTIVITIES
Payment of principal on convertible notes	0	(50,000)
Payment of principal on Corbel loan	(500,000)	(366,667)
NET CASH (USED) IN FINANCING ACTIVITIES	(500,000)	(416,667)
Increase (decrease) in cash	(71,264)	(99,545)
Cash at beginning of period	872,335	785,523
Cash at end of period	801,071	685,978
Cash paid for interest	$ 599,265	$ 540,327

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
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, 2023 (the “2023 Form 10-K”) 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 six-month periods ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024. Significant Accounting Policies During the first quarter of 2023, the Company determined that it is entitled to an Employee Retention Tax Credit (“ERTC”) of $1.718 million and has submitted amended Federal Form 941 returns claiming that refund. The ERTC refund is treated as a government grant reducing appropriate expenses for the $1.718 million less expenses for applying for the refund of $258,000, or a net of $1.46 million, which primarily affected the franchising venue as other operating expenses, a much smaller amount to general and administrative expenses and approximately $83,000 of the refund was to the Company’s subsidiary, RH Roanoke. This refund applied both to Noble Roman’s, Inc. and its subsidiary, RH Roanoke, Inc. Although the refund was recorded in the first quarter of 2023, it effectively reimbursed for expenses and lost revenue that occurred over several prior quarters which distorts the comparability of the first half of 2024 with the first half of 2023. To date the Company has received all five quarterly refunds for Roanoke, Inc. and three refunds for 2020 and one of the two quarterly refunds for 2021 for Noble Roman’s, Inc. In recent communications, the Internal Revenue Service (the “IRS”), indicated the final refund claim had been received and was in process, but the IRS had put a temporary hold on all additional returns while the IRS addresses administrative issues in processing refunds generally. There have been no significant changes in the Company's accounting policies from those disclosed in the 2023 Form 10-K.

Restatement of Previously Issue

Restatement of Previously Issued Consolidated Financial Statements	6 Months Ended
	Jun. 30, 2024
Restatement of Previously Issued Consolidated Financial Statements
Restatement of Previously Issued Consolidated Financial Statements	Note 2 – As discussed in Note 2 of the 2023 Form 10-K, accounts payable and other accrued expenses along with accumulated deficit were restated for the first half of 2023 to reflect the balances carried forward from the restated 2022 amounts.

Inventory

Inventory	6 Months Ended
Inventory	Jun. 30, 2024
Inventory
Inventory	Note 3 – Inventory. Inventory consists of ingredient inventory used to make products in the Company-owned restaurants, marketing materials to sell to franchisees and equipment inventory to be used in future locations. At June 30, 2024 and December 31, 2023 inventory consisted of the following: As of 12/31/23 As of 6/30/24 Ingredient inventory used to make products in company locations $ 157,861 $ 180,238 Marketing materials 27,086 256,676 Equipment inventory 780,872 780,872 Total $ 965,819 $ 987,786

Royalties and Fees

Royalties and Fees	6 Months Ended
Royalties and Fees	Jun. 30, 2024
Royalties and Fees
Royalties And Fees	Note 4 – Royalties and fees included initial franchise fees of $122,846 (after deferring initial fees of $127,500 and amortizing $94,846 of previously deferred fees and receiving $28,000 in transfer fees) for the six-month period ended June 30, 2024, and $92,596 for the six-month period ended June 30, 2023. Royalties and fees included equipment commissions of $92,104 for the six-month period ended June 30, 2024, and $52,779 for the six-month period ended June 30, 2023. Royalties and fees, including amortized initial franchise fees and equipment commissions, were $2,814,304 for the six-month period ended June 30, 2024, and $2,122,602 for the six-month period ended June 30, 2023. 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 deferred contract income was $1,580,910 and deferred costs were $1,426,578 as of June 30, 2024. At December 31, 2023 and June 30, 2024, the carrying values of the Company’s franchise receivables have been reduced to anticipated realizable value. After considering this reduction of carrying value, the Company anticipates that substantially all of its accounts receivable reflected on the consolidated balance sheet as of June 30, 2024, will be collected. During the three-month and six-month periods ended June 30, 2024 there were no Company-operated or franchised Craft Pizza & Pub restaurants opened or closed. There were 18 new non-traditional outlets opened and 42 non-traditional outlets opened during the three-month and six-month periods ended June 30, 2024, respectively.

Loans Payable

Loans Payable	6 Months Ended
Loans Payable	Jun. 30, 2024
Loans Payable
Loans Payable	Note 5 – As the Company reported previously, it is pursuing plans for new financing to repay the loan from Corbel Capital Partners SBIC, L.P. (the “Purchaser” or “Corbel”) and to repay the subordinated notes. There can be no assurance that the Company will be able to obtain the financing as planned on favorable terms or at all. However, based on its credit metrics, including its recent and forecasted earnings before interest, taxes and depreciation and amortization, the Company believes it will be able to complete the refinancing. Based on terms indicated in ongoing discussions between the Company and potential lenders, the Company currently expects the refinancing will result in a substantial reduction in its interest rate expense.

Earnings (Loss) per Share

Earnings (Loss) per Share	6 Months Ended
Earnings (Loss) per Share	Jun. 30, 2024
Earnings (Loss) per Share
Earnings (loss) Per Share	Note 6 - The following table sets forth the calculation of basic and diluted earnings per share for the six-month period ended June 30, 2024. The comparability of the six months ended June 30, 2024 and the six months ended June 30, 2023 is limited because net income of $1,193,844 for the six months ended June 30, 2023 included $1.46 million of expenses reimbursed by the ERTC refund which related to periods before the six months ended June 30, 2023. Without that refund being recorded in the first quarter of 2023, the Company would have reported a net loss of approximately $266,000. The ERTC refund reflected excess costs and lost revenue incurred by the Company as a result of government restrictions in an attempt to prevent the spread of a novel strain of Coronavirus (“COVID”). The following table sets forth the calculation of basic and diluted earnings per share for the three-month periods ended June 30, 2024 and June 30, 2023: Three Months Ended June 30, 2024 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 56,858 22,215,512 $ 0.00 Effect of dilutive securities Stock option and warrant dilution 248,019 Convertible notes 15,000 1,250,000 _____ Diluted earnings per share Net income $ 71,858 23,713,531 $ 0.00 Three Months Ended June 30, 2023 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 325,575 22,215,512 $ 0.02 Effect of dilutive securities Stock option and warrant dilution 133,252 Convertible notes 30,000 1,250,000 _____ Diluted earnings per share Net income $ 355,575 23,598,764 $ 0.01 The following table sets forth the calculation of basic and diluted earnings per share for the six-month periods ended June 30, 2024 and June 30, 2023: Six Months Ended June 30, 2024 Loss (Numerator) Shares (Denominator) Per-Share Amount Net loss $ (29,619 ) 22,215,512 $ (0.00 ) Effect of dilutive securities Stock and warrant dilution 248,019 Convertible notes 28,750 1,250,000 - Diluted loss per share Net loss (1) $ (869 ) 22,215,512 $ (0.00 ) (1) Net loss per share is shown same as basic loss per share because the underlying dilutive securities have anti-dilutive effect. Six Months Ended June 30, 2023 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 1,193,844 22,215,512 $ 0.05 Effect of dilutive securities Stock option and warrant dilution 133,252 Convertible notes 30,000 1,250,000 - Diluted earnings per share Net income $ 1,223,844 23,598,764 $ 0.05

Notes Payable

Notes Payable	6 Months Ended
Notes Payable	Jun. 30, 2024
Notes Payable
Notes Payable	Note 7 – On February 7, 2020, the Company entered into a Senior Secured Promissory Note and Warrant Purchase Agreement (as amended, the “Agreement”) with Corbel. Pursuant to the Agreement, the Company issued to the Purchaser a senior secured promissory note (as amended, the “Senior Note”) in the initial principal amount of $8.0 million. The Company has used the net proceeds of the Agreement as follows: (i) $4.2 million was used to repay the Company’s then-existing bank debt which was in the original amount of $6.1 million; (ii) $1.275 million was used to repay the portion of the Company’s existing subordinated convertible debt the maturity date of which most had not previously been extended; (iii) to pay debt issuance costs; and (iv) the remaining net proceeds were used for working capital or other general corporate purposes, including development of new Company-owned Craft Pizza & Pub locations. The Senior Note bears cash interest of SOFR, as defined in the Agreement, plus 7.75% for an aggregate rate of 13.11% at June 30, 2024 and 12.86% at June 30, 2023. In addition, the Senior Note requires payment-in-kind interest (“PIK Interest”) of 3% per annum, which is being added to the principal amount of the Senior Note. Interest is payable in arrears on the last calendar day of each month. Beginning in March 2023, the Senior Note requires principal payments of $83,333 per month continuing until maturity in February 2025, all payments were current as of June 30, 2024 and the Company was in compliance with the covenants in the Agreement. In conjunction with the borrowing under the Senior Note, the Company issued to the Purchaser a warrant (as amended, 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 $0.30 per share (“Tranche 1”), (ii) 900,000 shares of Common Stock at an exercise price of $0.30 per share (“Tranche 2”), and (iii) 150,000 shares of Common Stock at an exercise price of $0.30 per share (“Tranche 3”). Cashless exercise of the Corbel Warrant is only permitted with respect to Tranche 3. The Purchaser has the right, within six months after the issuance of any shares under the Corbel Warrant, to require the Company to repurchase such shares for cash or for put notes, at the Company's discretion. The Corbel Warrant expires on the seventh anniversary of the date of its issuance. At June 30, 2024, the balance of the Senior Note was comprised of: Principal $ 7,154,335 Unamortized Warrant Discount and Loan Closing Cost (261,501 ) Carrying Value $ 6,892,834 See Note 8 for information regarding change in the fair value of the Corbel Warrant.

Fair Value of Warrant Laibility

Fair Value of Warrant Laibility	6 Months Ended
Fair Value of Warrant Laibility	Jun. 30, 2024
Fair Value of Warrant Laibility
Fair Value of Warrant Laibility	Note 8 –Warrant liability of $540,650 using the Black-Scholes method of calculation was included in the balance sheet as of December 31, 2023. At the end of each quarter, including the quarter ended June 30, 2024, the Company revalues the warrant liability according to the Black-Scholes method. That calculation determined the warrant liability as of June 30, 2024 was $731,038, therefore a change in the fair value of the warrant of $65,888 was recorded as other non-cash expense on the Consolidated Statement of Operations for the three-month period ended June 30, 2024 and $190,388 for the six-month period ended June 30, 2024.

Contingencies

Contingencies	6 Months Ended
Contingencies	Jun. 30, 2024
Contingencies
Contingencies	Note 9 – The Company, from time to time, is or may become involved in litigation or regulatory proceedings arising out of its normal business operations. Currently, there are no such pending proceedings which the Company considers to be material. There are no commitments to any key executives or officers beyond an employment agreement with each of the Executive Chairman and Chief Financial Officer and the President and Chief Executive Officer.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Basis of Presentation and Summary of Significant Accounting Policies
Significant Accounting Policies	During the first quarter of 2023, the Company determined that it is entitled to an Employee Retention Tax Credit (“ERTC”) of $1.718 million and has submitted amended Federal Form 941 returns claiming that refund. The ERTC refund is treated as a government grant reducing appropriate expenses for the $1.718 million less expenses for applying for the refund of $258,000, or a net of $1.46 million, which primarily affected the franchising venue as other operating expenses, a much smaller amount to general and administrative expenses and approximately $83,000 of the refund was to the Company’s subsidiary, RH Roanoke. This refund applied both to Noble Roman’s, Inc. and its subsidiary, RH Roanoke, Inc. Although the refund was recorded in the first quarter of 2023, it effectively reimbursed for expenses and lost revenue that occurred over several prior quarters which distorts the comparability of the first half of 2024 with the first half of 2023. To date the Company has received all five quarterly refunds for Roanoke, Inc. and three refunds for 2020 and one of the two quarterly refunds for 2021 for Noble Roman’s, Inc. In recent communications, the Internal Revenue Service (the “IRS”), indicated the final refund claim had been received and was in process, but the IRS had put a temporary hold on all additional returns while the IRS addresses administrative issues in processing refunds generally. There have been no significant changes in the Company's accounting policies from those disclosed in the 2023 Form 10-K.

Inventory (Tables)

Inventory (Tables)	6 Months Ended
Inventory (Tables)	Jun. 30, 2024
Inventory
Schedule of inventory	As of 12/31/23 As of 6/30/24 Ingredient inventory used to make products in company locations $ 157,861 $ 180,238 Marketing materials 27,086 256,676 Equipment inventory 780,872 780,872 Total $ 965,819 $ 987,786

Earnings (Loss) per Share (Tabl

Earnings (Loss) per Share (Tables)	6 Months Ended
Earnings (Loss) per Share (Tables)	Jun. 30, 2024
Earnings (Loss) per Share
Basic And Diluted Earnings (loss) Per Share	Three Months Ended June 30, 2024 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 56,858 22,215,512 $ 0.00 Effect of dilutive securities Stock option and warrant dilution 248,019 Convertible notes 15,000 1,250,000 _____ Diluted earnings per share Net income $ 71,858 23,713,531 $ 0.00 Three Months Ended June 30, 2023 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 325,575 22,215,512 $ 0.02 Effect of dilutive securities Stock option and warrant dilution 133,252 Convertible notes 30,000 1,250,000 _____ Diluted earnings per share Net income $ 355,575 23,598,764 $ 0.01 Six Months Ended June 30, 2024 Loss (Numerator) Shares (Denominator) Per-Share Amount Net loss $ (29,619 ) 22,215,512 $ (0.00 ) Effect of dilutive securities Stock and warrant dilution 248,019 Convertible notes 28,750 1,250,000 - Diluted loss per share Net loss (1) $ (869 ) 22,215,512 $ (0.00 ) (1) Net loss per share is shown same as basic loss per share because the underlying dilutive securities have anti-dilutive effect. Six Months Ended June 30, 2023 Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 1,193,844 22,215,512 $ 0.05 Effect of dilutive securities Stock option and warrant dilution 133,252 Convertible notes 30,000 1,250,000 - Diluted earnings per share Net income $ 1,223,844 23,598,764 $ 0.05

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
Notes Payable (Tables)	Jun. 30, 2024
Notes Payable
Schedule ofCredit Facility	Principal $ 7,154,335 Unamortized Warrant Discount and Loan Closing Cost (261,501 ) Carrying Value $ 6,892,834

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Basis of Presentation and Summary of Significant Accounting Policies
Net operating loss carry-forward	$ 1,718,000	$ 1,718,000
Net benefit or refund on Employee Retention Tax Credit	1,460,000
Deferred tax credits	258,000
General and administrative expenses	$ 83,000

Inventory (Details)

Inventory (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Inventory
Ingredient inventory used to make products in company locations	$ 180,238	$ 157,861
Marketing materials	256,676	27,086
Equipment inventory	780,872	780,872
Total	$ 987,786	$ 965,819

Royalties and Fees (Details Nar

Royalties and Fees (Details Narrative) - USD ($)	6 Months Ended
Royalties and Fees (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023
Royalties And Fees	$ 2,814,304	$ 2,122,602
Deferred cost	1,426,578
Deferred contract income	$ 1,580,910
Description of royalty and fees	deferring initial fees of $127,500 and amortizing $94,846 of previously deferred fees and receiving $28,000 in transfer fees
Amortized Initial Franchise Fees and Equipment Commissions
Royalties And Fees	$ 122,846	92,596
Equipment Commission
Royalties And Fees	$ 92,104	$ 52,779

Earnings (Loss) per Share (Deta

Earnings (Loss) per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
Earnings (Loss) per Share (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net income (loss)	$ 56,858	$ 325,575	$ (29,619)	$ 1,193,844
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	$ 0.02	$ 0	$ 0.05
Stock and warrant dilution	248,019	133,252	248,019	133,252
Diluted Earnings Per Share Net Loss	$ 71,858	$ 355,575	$ (869)	$ 1,223,844
Weighted Average Number of Diluted Shares Adjustment	23,713,531	23,598,764	23,713,531	23,598,764
Diluted Earnings per Share Net Income (loss)	$ 0	$ 0.01	$ 0	$ 0.05
Convertible Note Payable
Effect Of Dilutive Securities	$ 15,000	$ 30,000	$ 28,750	$ 30,000
Shares Denominator	1,250,000	1,250,000	1,250,000	1,250,000

Earnings (Loss) per Share (De_2

Earnings (Loss) per Share (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Earnings (Loss) per Share (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net income (loss)	$ 56,858	$ 325,575	$ (29,619)	$ 1,193,844
Basic And Diluted Earnings [Member]
Reimbursement expenses by ERTC				$ 1,460,000
Description of first quarter				the Company would have reported a net loss of approximately $266,000
Net income (loss)				$ 1,193,844

Notes Payable (Details)

Notes Payable (Details)	Jun. 30, 2024 USD ($)
Notes Payable
Principal	$ 7,154,335
Unamortized Warrant Discount and Loan Closing Cost	(261,501)
Carrying value	$ 6,892,834

Note payable (Details Narrative

Note payable (Details Narrative) - USD ($)		6 Months Ended
Note payable (Details Narrative) - USD ($)	Feb. 07, 2020	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Convertible notes payable		$ 0	$ 575,000
Interest Rate	7.75%	13.11%		12.86%
Tranche 1 [Member]
Purchase Shares of Common Stock	1,200,000
Exercise Price	$ 0.30
Tranche 2 [Member]
Purchase Shares of Common Stock	900,000
Exercise Price	$ 0.30
Tranche 3 [Member]
Purchase Shares of Common Stock	150,000
Exercise Price	$ 0.30
Secured Promissory Note [Member]
Purchase Shares of Common Stock	2,250,000
Convertible notes payable		$ 83,333
Bank Loan	$ 8,000,000
Original Amount	$ 6,100,000
Desription of amendment to the Agreement changing	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 were used for working capital or 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%
Maturity Date		February 2025

Fair value of warrants (Details

Fair value of warrants (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
Fair value of warrants (Details Narrative) - USD ($)	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Fair value of warrants (Details Narrative)
Other non cash expense	$ 65,888	$ 190,388
Warrant liability	$ 731,038	$ 731,038	$ 540,650