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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended
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Jun. 30, 2019
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] |
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 30, 2019 (in thousands):
|  | Notes Receivable |
2020 |  | $ | 389 |
2021 |  |  | 542 |
2022 |  |  | 193 |
|  | $ | 1,124 |
Total Revenues | Total revenues consist of the following (in thousands):
|  | Fiscal Year Ended |
|  | June 30, 2019 |  |  | June 24, 2018 |
Restaurant Sales |  | $ | 889 |  |  | $ | 4,254 |
Franchise Royalties |  |  | 4,814 |  |  |  | 4,997 |
Supplier and Distributor Incentive Revenues |  |  | 4,519 |  |  |  | 4,752 |
Franchise License Fees |  |  | 1,031 |  |  |  | 278 |
Area Development Fees and Foreign Master License Fees |  |  | 41 |  |  |  | 835 |
Advertising Funds |  |  | 684 |  |  |  | - |
Supplier Convention Funds |  |  | 294 |  |  |  | - |
Other |  |  | 47 |  |  |  | 4 |
|  | $ | 12,319 |  |  | $ | 15,120 |
Line Items Impacted by Cumulative Adjustment from Adoption of New Accounting Standard | The following chart presents the specific line items impacted by the cumulative adjustment to opening retained earnings:
(In thousands, except share amounts) |  | As Reported June 24, 2018 |  |  | Total Adjustment |  |  | Adjusted Balance Sheet June 25, 2018 |
ASSETS |  |  |  |  |  |  |  |  |
CURRENT ASSETS |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 1,386 |  |  | $ | - |  |  | $ | 1,386 |
Accounts receivable, less allowance for bad debts of $158 |  |  | 1,518 |  |  |  | - |  |  |  | 1,518 |
Other receivable |  |  | 300 |  |  |  | - |  |  |  | 300 |
Notes receivable |  |  | 712 |  |  |  | - |  |  |  | 712 |
Inventories |  |  | 6 |  |  |  | - |  |  |  | 6 |
Income tax receivable |  |  | 5 |  |  |  | - |  |  |  | 5 |
Property held for sale |  |  | 539 |  |  |  | - |  |  |  | 539 |
Deferred contract charges |  |  | - |  |  |  | 10 |  |  |  | 10 |
Prepaid expenses and other |  |  | 273 |  |  |  | - |  |  |  | 273 |
Total current assets |  |  | 4,739 |  |  |  | 10 |  |  |  | 4,749 |
LONG-TERM ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Property, plant and equipment, net |  |  | 1,510 |  |  |  | - |  |  |  | 1,510 |
Intangible assets definite-lived, net |  |  | 212 |  |  |  | - |  |  |  | 212 |
Long-term notes receivable |  |  | 803 |  |  |  | - |  |  |  | 803 |
Deferred tax asset, net |  |  | 3,479 |  |  |  | - |  |  |  | 3,479 |
Long term deferred contract charges |  |  | - |  |  |  | 182 |  |  |  | 182 |
Deposits and other |  |  | 243 |  |  |  | - |  |  |  | 243 |
Total assets |  | $ | 10,986 |  |  | $ | 192 |  |  | $ | 11,178 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |
CURRENT LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable - trade |  | $ | 421 |  |  | $ | - |  |  | $ | 421 |
Accounts payable - lease termination impairments |  |  | 353 |  |  |  | - |  |  |  | 353 |
Accrued expenses |  |  | 1,109 |  |  |  | (4 | ) |  |  | 1,105 |
Deferred rent |  |  | 32 |  |  |  | - |  |  |  | 32 |
Deferred revenues |  |  | 65 |  |  |  | 243 |  |  |  | 308 |
Total current liabilities |  |  | 1,980 |  |  |  | 239 |  |  |  | 2,219 |
LONG-TERM LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Convertible notes |  |  | 1,562 |  |  |  | - |  |  |  | 1,562 |
Deferred rent, net of current portion |  |  | 433 |  |  |  | - |  |  |  | 433 |
Deferred revenues, net of current portion |  |  | 670 |  |  |  | 1,575 |  |  |  | 2,245 |
Other long-term liabilities |  |  | 42 |  |  |  | - |  |  |  | 42 |
Total liabilities |  |  | 4,687 |  |  |  | 1,814 |  |  |  | 6,501 |
COMMITMENTS AND CONTINGENCIES (SEE NOTE 3) |  |  |  |  |  |  |  |  |  |  |  |
SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,166,674 shares outstanding 15,047,470 shares |  |  | 222 |  |  |  | - |  |  |  | 222 |
Additional paid-in capital |  |  | 33,206 |  |  |  | - |  |  |  | 33,206 |
Accumulated deficit |  |  | (2,493 | ) |  |  | (1,622 | ) |  |  | (4,115 | )
Treasury stock at cost |  |  |  |  |  |  |  |  |  |  |  |
Shares in treasury: 7,119,204 |  |  | (24,636 | ) |  |  | - |  |  |  | (24,636 | )
Total shareholders' equity |  |  | 6,299 |  |  |  | (1,622 | ) |  |  | 4,677 |
Total liabilities and shareholders' equity |  | $ | 10,986 |  |  | $ | 192 |  |  | $ | 11,178 |
The following charts present the specific line items impacted by the application of Topic 606 in fiscal 2019.
(In thousands, except share amounts) |  | As Reported June 30, 2019 |  |  | Total Adjustment |  |  | Balance Sheet Without Adoption of Topic 606 |
ASSETS |  |  |  |  |  |  |  |  |
CURRENT ASSETS |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,264 |  |  | $ | - |  |  | $ | 2,264 |
Accounts receivable, less allowance for bad debts of $209 |  |  | 1,191 |  |  |  | - |  |  |  | 1,191 |
Other receivable |  |  | - |  |  |  | - |  |  |  | - |
Notes receivable, less allowance of bad debt of $916 |  |  | 389 |  |  |  | - |  |  |  | 389 |
Inventories |  |  | 7 |  |  |  | - |  |  |  | 7 |
Income tax receivable |  |  | 4 |  |  |  | - |  |  |  | 4 |
Property held for sale |  |  | 231 |  |  |  | - |  |  |  | 231 |
Deferred contract charges |  |  | 38 |  |  |  | (38 | ) |  |  | - |
Prepaid expenses and other |  |  | 346 |  |  |  | - |  |  |  | 346 |
Total current assets |  |  | 4,470 |  |  |  | (38 | ) |  |  | 4,432 |
LONG-TERM ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Property, plant and equipment, net |  |  | 500 |  |  |  | - |  |  |  | 500 |
Intangible assets definite-lived, net |  |  | 196 |  |  |  | - |  |  |  | 196 |
Long-term notes receivable |  |  | 735 |  |  |  | - |  |  |  | 735 |
Deferred tax asset, net |  |  | 4,060 |  |  |  | - |  |  |  | 4,060 |
Long term deferred contract charges |  |  | 232 |  |  |  | (232 | ) |  |  | - |
Deposits and other |  |  | 233 |  |  |  | - |  |  |  | 233 |
Total assets |  | $ | 10,426 |  |  | $ | (270 | ) |  | $ | 10,156 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |
CURRENT LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable - trade |  | $ | 400 |  |  | $ | - |  |  | $ | 400 |
Accounts payable - lease termination impairments |  |  | 832 |  |  |  | - |  |  |  | 832 |
Accrued expenses |  |  | 834 |  |  |  | 4 |  |  |  | 838 |
Deferred rent |  |  | 37 |  |  |  | - |  |  |  | 37 |
Deferred revenues |  |  | 275 |  |  |  | (275 | ) |  |  | - |
Total current liabilities |  |  | 2,378 |  |  |  | (271 | ) |  |  | 2,107 |
LONG-TERM LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Convertible notes |  |  | 1,584 |  |  |  | - |  |  |  | 1,584 |
Deferred rent, net of current portion |  |  | 397 |  |  |  | - |  |  |  | 397 |
Deferred revenues, net of current portion |  |  | 1,561 |  |  |  | (1,124 | ) |  |  | 437 |
Other long-term liabilities |  |  | 72 |  |  |  | - |  |  |  | 72 |
Total liabilities |  |  | 5,992 |  |  |  | (1,395 | ) |  |  | 4,597 |
COMMITMENTS AND CONTINGENCIES (SEE NOTE 3) |  |  |  |  |  |  |  |  |  |  |  |
SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Common stock, $.01 par value; authorized 26,000,000 shares; issued 22,208,141 outstanding 15,090,837 |  |  | 222 |  |  |  | - |  |  |  | 222 |
Additional paid-in capital |  |  | 33,327 |  |  |  | - |  |  |  | 33,327 |
Accumulated deficit |  |  | (4,483 | ) |  |  | 1,125 |  |  |  | (3,358 | )
Treasury stock at cost |  |  |  |  |  |  |  |  |  |  |  |
Shares in treasury: 7,117,304 |  |  | (24,632 | ) |  |  | - |  |  |  | (24,632 | )
Total shareholders' equity |  |  | 4,434 |  |  |  | 1,125 |  |  |  | 5,559 |
Total liabilities and shareholders' equity |  | $ | 10,426 |  |  | $ | (270 | ) |  | $ | 10,156 |
|  | As Reported Fiscal Year Ended June 30, 2019 |  |  | Total Adjustments |  |  | Income Statement Without Adoption of Topic 606 |
REVENUES: |  | $ | 12,319 |  |  | $ | (1,398 | ) |  | $ | 10,921 |
COSTS AND EXPENSES: |  |  |  |  |  |  |  |  |  |  |  |
Cost of sales |  |  | 1,120 |  |  |  | - |  |  |  | 1,120 |
General and administrative expenses |  |  | 5,274 |  |  |  | - |  |  |  | 5,274 |
Franchise expenses |  |  | 3,778 |  |  |  | (901 | ) |  |  | 2,877 |
Gain on sale of assets |  |  | (551 | ) |  |  | - |  |  |  | (551 | )
Impairment of long-lived assets and other lease charges |  |  | 1,664 |  |  |  | - |  |  |  | 1,664 |
Bad debt |  |  | 1,265 |  |  |  | - |  |  |  | 1,265 |
Interest expense |  |  | 104 |  |  |  | - |  |  |  | 104 |
Depreciation and amortization expense |  |  | 466 |  |  |  | - |  |  |  | 466 |
Total costs and expenses |  |  | 13,120 |  |  |  | (901 | ) |  |  | 12,219 |
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES |  |  | (801 | ) |  |  | (497 | ) |  |  | (1,298 | )
Income tax benefit |  |  | (51 | ) |  |  | - |  |  |  | (51 | )
LOSS FROM CONTINUING OPERATIONS |  |  | (750 | ) |  |  | (497 | ) |  |  | (1,247 | )
Loss from discontinued operations, net of taxes |  |  | - |  |  |  | - |  |  |  | - |
NET LOSS |  | $ | (750 | ) |  | $ | (497 | ) |  | $ | (1,247 | )
INCOME PER SHARE OF COMMON STOCK - BASIC: |  |  |  |  |  |  |  |  |  |  |  |
Loss from continuing operations |  | $ | (0.05 | ) |  | $ | (0.03 | ) |  | $ | (0.08 | )
Loss from discontinued operations |  |  | - |  |  |  | - |  |  |  | - |
Net loss |  | $ | (0.05 | ) |  | $ | (0.03 | ) |  | $ | (0.08 | )
INCOME PER SHARE OF COMMON STOCK - DILUTED: |  |  |  |  |  |  |  |  |  |  |  |
Loss from continuing operations |  | $ | (0.05 | ) |  | $ | (0.03 | ) |  | $ | (0.08 | )
Loss from discontinued operations |  |  | - |  |  |  | - |  |  |  | - |
Net loss |  | $ | (0.05 | ) |  | $ | (0.03 | ) |  | $ | (0.08 | )
Weighted average common shares outstanding - basic |  |  | 15,070 |  |  |  | 15,070 |  |  |  | 15,070 |
Weighted average common and potential dilutive common shares outstanding |  |  | 15,070 |  |  |  | 15,070 |  |  |  | 15,070 |

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