10-Q Filing

FAT BRANDS, INC CIK: 1705012 Q2 2018

Filing Information

Form Type	10-Q
Accession Number	`0001493152-18-011963`
Period End Date	20180630
Filing Date	20180815
Fiscal Year	2018
Fiscal Period	Q2
XBRL Instance	fat-20180701.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 81 Income Statement 52 Cash Flow Statement 39 Stockholders Equity 13

Balance Sheet 81 line items

Line Item	Tag	Value	Unit	Period
Accounts receivable, net of allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivableCurrent`	$679.00K	USD	Point-in-time
Accounts receivable, net of allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivableCurrent`	$676.00K	USD	Point-in-time
Trade notes receivable, net of allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivable`	$17.00K	USD	Point-in-time
Trade notes receivable, net of allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivable`	$17.00K	USD	Point-in-time
Cash	`Cash`	$32.00K	USD	Point-in-time
Cash	`Cash`	$955.00K	USD	Point-in-time
Trade notes receivable - noncurrent, net of allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivableNoncurrent`	$17.00K	USD	Point-in-time
Trade notes receivable - noncurrent, net of allowance for doubtful accounts	`AllowanceForDoubtfulAccountsReceivableNoncurrent`	$17.00K	USD	Point-in-time
Common stock, par value	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Accounts receivable, net of allowance for doubtful accounts of $676 and $679, respectively	`AccountsReceivableNetCurrent`	$918.00K	USD	Point-in-time
Accounts receivable, net of allowance for doubtful accounts of $676 and $679, respectively	`AccountsReceivableNetCurrent`	$1.31M	USD	Point-in-time
Common stock, par value	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Common stock, shares authorized	`CommonStockSharesAuthorized`	25.00M	shares	Point-in-time
Trade notes receivable, net of allowance for doubtful accounts of $17	`TradeNotesReceivableCurrent`	$152.00K	USD	Point-in-time
Common stock, shares authorized	`CommonStockSharesAuthorized`	25.00M	shares	Point-in-time
Trade notes receivable, net of allowance for doubtful accounts of $17	`TradeNotesReceivableCurrent`	$77.00K	USD	Point-in-time
Other current assets	`OtherAssetsCurrent`	$153.00K	USD	Point-in-time
Other current assets	`OtherAssetsCurrent`	$354.00K	USD	Point-in-time
Common stock, shares issued	`CommonStockSharesIssued`	11.18M	shares	Point-in-time
Common stock, shares issued	`CommonStockSharesIssued`	10.00M	shares	Point-in-time
Total current assets	`AssetsCurrent`	$1.18M	USD	Point-in-time
Common stock, shares outstanding	`CommonStockSharesOutstanding`	11.18M	shares	Point-in-time
Common stock, shares outstanding	`CommonStockSharesOutstanding`	10.00M	shares	Point-in-time
Total current assets	`AssetsCurrent`	$2.77M	USD	Point-in-time
Trade notes receivable - noncurrent, net of allowance of $17 for doubtful accounts	`TradeNotesReceivableNoncurrent`	$244.00K	USD	Point-in-time
Trade notes receivable - noncurrent, net of allowance of $17 for doubtful accounts	`TradeNotesReceivableNoncurrent`	$346.00K	USD	Point-in-time
Due from affiliates	`DueFromAffiliates`	$7.96M	USD	Point-in-time
Due from affiliates	`DueFromAffiliates`	$8.97M	USD	Point-in-time
Deferred income taxes	`DeferredTaxAssetsLiabilitiesNetNoncurrent`	$1.81M	USD	Point-in-time
Deferred income taxes	`DeferredTaxAssetsLiabilitiesNetNoncurrent`	$937.00K	USD	Point-in-time
Goodwill	`Goodwill`	$7.36M	USD	Point-in-time
Goodwill	`Goodwill`	$7.36M	USD	Point-in-time
Other intangible assets, net	`IntangibleAssetsNetExcludingGoodwill`	$11.01M	USD	Point-in-time
Other intangible assets, net	`IntangibleAssetsNetExcludingGoodwill`	$10.96M	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$371.00K	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$7.00K	USD	Point-in-time
Buffalo's creative and advertising fund	`BuffalosCreativeAndAdvertisingFundNoncurrent`	$436.00K	USD	Point-in-time
Buffalo's creative and advertising fund	`BuffalosCreativeAndAdvertisingFundNoncurrent`	-	USD	Point-in-time
Total assets	`Assets`	$32.48M	USD	Point-in-time
Total assets	`Assets`	$29.24M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$2.40M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$2.44M	USD	Point-in-time
Deferred income	`DeferredTaxLiabilitiesCurrent`	$1.16M	USD	Point-in-time
Deferred income	`DeferredTaxLiabilitiesCurrent`	$1.77M	USD	Point-in-time
Accrued expenses	`AccruedLiabilitiesCurrent`	$1.76M	USD	Point-in-time
Accrued expenses	`AccruedLiabilitiesCurrent`	$1.49M	USD	Point-in-time
Accrued advertising	`AccruedAdvertisingCurrent`	$761.00K	USD	Point-in-time
Accrued advertising	`AccruedAdvertisingCurrent`	$348.00K	USD	Point-in-time
Dividend payable on common shares	`DividendsPayableCurrent`	$1.35M	USD	Point-in-time
Dividend payable on common shares	`DividendsPayableCurrent`	-	USD	Point-in-time
Accrued interest payable to FCCG	`InterestPayableCurrent`	-	USD	Point-in-time
Accrued interest payable to FCCG	`InterestPayableCurrent`	$405.00K	USD	Point-in-time
Dividend payable on mandatorily redeemable preferred shares	`DividendPayableOnRedeemablePreferredShares`	-	USD	Point-in-time
Dividend payable on mandatorily redeemable preferred shares	`DividendPayableOnRedeemablePreferredShares`	$53.00K	USD	Point-in-time
Current portion of note payable to FCCG	`NotesPayableCurrent`	$950.00K	USD	Point-in-time
Current portion of note payable to FCCG	`NotesPayableCurrent`	-	USD	Point-in-time
Current portion of long-term debt	`LongTermDebtCurrent`	-	USD	Point-in-time
Current portion of long-term debt	`LongTermDebtCurrent`	$2.06M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$10.23M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$6.72M	USD	Point-in-time
Deferred income - noncurrent	`DeferredTaxLiabilitiesNoncurrent`	$5.75M	USD	Point-in-time
Deferred income - noncurrent	`DeferredTaxLiabilitiesNoncurrent`	$1.94M	USD	Point-in-time
Mandatorily redeemable preferred shares	`RedeemablePreferredShares`	-	USD	Point-in-time
Mandatorily redeemable preferred shares	`RedeemablePreferredShares`	$9.89M	USD	Point-in-time
Deferred dividend payable on mandatorily redeemable preferred shares	`DeferredDividendPayableOnMandatorilyRedeemablePreferredShares`	$25.00K	USD	Point-in-time
Deferred dividend payable on mandatorily redeemable preferred shares	`DeferredDividendPayableOnMandatorilyRedeemablePreferredShares`	-	USD	Point-in-time
Notes payable to FCCG	`LongTermNotesPayable`	-	USD	Point-in-time
Notes payable to FCCG	`LongTermNotesPayable`	$18.12M	USD	Point-in-time
Buffalo's creative and advertising fund-contra	`BuffalosCreativeAndAdvertisingFundcontraNoncurrent`	$436.00K	USD	Point-in-time
Buffalo's creative and advertising fund-contra	`BuffalosCreativeAndAdvertisingFundcontraNoncurrent`	-	USD	Point-in-time
Total liabilities	`Liabilities`	$25.89M	USD	Point-in-time
Total liabilities	`Liabilities`	$27.23M	USD	Point-in-time
Commitments and contingencies (Note 13)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Common stock, $.0001 par value; 25,000,000 shares authorized; 11,184,767 and 10,000,000 shares issued and outstanding at July 1, 2018 and December 31, 2017, respectively	`CommonStockValue`	$2.62M	USD	Point-in-time
Common stock, $.0001 par value; 25,000,000 shares authorized; 11,184,767 and 10,000,000 shares issued and outstanding at July 1, 2018 and December 31, 2017, respectively	`CommonStockValue`	$8.99M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-613.00K	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-2.40M	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$2.01M	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$6.59M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$32.48M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$29.24M	USD	Point-in-time

Income Statement 52 line items

Line Item	Tag	Value	Unit	Period
Royalties	`RoyaltiesRevenue`	$2.86M	USD	1 Quarter
Royalties	`RoyaltiesRevenue`	$5.43M	USD	2 Qtrs
Franchise fees	`InitialFranchiseFees`	$299.00K	USD	1 Quarter
Franchise fees	`InitialFranchiseFees`	$698.00K	USD	2 Qtrs
Store opening fees	`PreOpeningCosts`	$105.00K	USD	2 Qtrs
Store opening fees	`PreOpeningCosts`	$105.00K	USD	1 Quarter
Advertising fees	`AdvertisingRevenues`	$630.00K	USD	1 Quarter
Advertising fees	`AdvertisingRevenues`	$1.23M	USD	2 Qtrs
Management fees	`ManagementFeeExpense`	$14.00K	USD	1 Quarter
Management fees	`ManagementFeeExpense`	$32.00K	USD	2 Qtrs
Total revenue	`Revenues`	$3.91M	USD	1 Quarter
Total revenue	`Revenues`	$7.49M	USD	2 Qtrs
Compensation and employee benefits	`EmployeeBenefitsAndShareBasedCompensation`	$2.79M	USD	2 Qtrs
Compensation and employee benefits	`EmployeeBenefitsAndShareBasedCompensation`	$1.46M	USD	1 Quarter
Travel and entertainment	`TravelAndEntertainmentExpense`	$327.00K	USD	2 Qtrs
Travel and entertainment	`TravelAndEntertainmentExpense`	$203.00K	USD	1 Quarter
Professional fees	`ProfessionalFees`	$348.00K	USD	1 Quarter
Professional fees	`ProfessionalFees`	$558.00K	USD	2 Qtrs
Advertising expense	`AdvertisingExpense`	$1.23M	USD	2 Qtrs
Advertising expense	`AdvertisingExpense`	$630.00K	USD	1 Quarter
Other	`OtherGeneralAndAdministrativeExpense`	$441.00K	USD	1 Quarter
Other	`OtherGeneralAndAdministrativeExpense`	$824.00K	USD	2 Qtrs
Total general and administrative expenses	`GeneralAndAdministrativeExpense`	$3.08M	USD	1 Quarter
Total general and administrative expenses	`GeneralAndAdministrativeExpense`	$5.72M	USD	2 Qtrs
Income from operations	`OperatingIncomeLoss`	$827.00K	USD	1 Quarter
Income from operations	`OperatingIncomeLoss`	$1.77M	USD	2 Qtrs
Interest expense, net	`InterestExpense`	$436.00K	USD	2 Qtrs
Interest expense, net	`InterestExpense`	$222.00K	USD	1 Quarter
Interest expense related to mandatorily redeemable preferred shares	`InterestExpenseOther`	$78.00K	USD	2 Qtrs
Interest expense related to mandatorily redeemable preferred shares	`InterestExpenseOther`	$78.00K	USD	1 Quarter
Depreciation and amortization	`DepreciationAndAmortization`	$73.00K	USD	2 Qtrs
Depreciation and amortization	`DepreciationAndAmortization`	$40.00K	USD	1 Quarter
Other expense, net	`OtherNonoperatingIncomeExpense`	$-3.00K	USD	2 Qtrs
Other expense, net	`OtherNonoperatingIncomeExpense`	$-2.00K	USD	1 Quarter
Total non-operating expense	`NonoperatingIncomeExpense`	$-590.00K	USD	2 Qtrs
Total non-operating expense	`NonoperatingIncomeExpense`	$-342.00K	USD	1 Quarter
Income before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$1.18M	USD	2 Qtrs
Income before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$485.00K	USD	1 Quarter
Income tax expense	`IncomeTaxExpenseBenefit`	$296.00K	USD	2 Qtrs
Income tax expense	`IncomeTaxExpenseBenefit`	$112.00K	USD	1 Quarter
Net income	`NetIncomeLoss`	$373.00K	USD	1 Quarter
Net income	`NetIncomeLoss`	$882.00K	USD	2 Qtrs
Basic income per common share	`EarningsPerShareBasic`	$0.04	USD	1 Quarter
Basic income per common share	`EarningsPerShareBasic`	$0.09	USD	2 Qtrs
Basic weighted average shares outstanding	`WeightedAverageNumberOfSharesOutstandingBasic`	10,090.00	shares	2 Qtrs
Basic weighted average shares outstanding	`WeightedAverageNumberOfSharesOutstandingBasic`	10,179.00	shares	1 Quarter
Diluted income per common share	`EarningsPerShareDiluted`	$0.09	USD	2 Qtrs
Diluted income per common share	`EarningsPerShareDiluted`	$0.04	USD	1 Quarter
Diluted weighted average shares outstanding	`WeightedAverageNumberOfDilutedSharesOutstanding`	10,090.00	shares	2 Qtrs
Diluted weighted average shares outstanding	`WeightedAverageNumberOfDilutedSharesOutstanding`	10,179.00	shares	1 Quarter
Cash dividends declared per common share	`PreferredStockDividendsPerShareDeclared`	$0.12	USD	1 Quarter
Cash dividends declared per common share	`PreferredStockDividendsPerShareDeclared`	$0.24	USD	2 Qtrs

Cash Flow Statement 39 line items

Line Item	Tag	Value	Unit	Period
Net income	`NetIncomeLoss`	$373.00K	USD	1 Quarter
Net income	`NetIncomeLoss`	$882.00K	USD	2 Qtrs
Deferred income taxes	`DeferredIncomeTaxesAndTaxCredits`	$-66.00K	USD	2 Qtrs
Recovery of bad debts	`ProvisionForDoubtfulAccounts`	$-8.00K	USD	2 Qtrs
Depreciation and amortization	`DepreciationAndAmortization`	$73.00K	USD	2 Qtrs
Depreciation and amortization	`DepreciationAndAmortization`	$40.00K	USD	1 Quarter
Share-based compensation	`ShareBasedCompensation`	$245.00K	USD	2 Qtrs
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$264.00K	USD	2 Qtrs
Trade notes receivable	`IncreaseDecreaseInNotesReceivableCurrent`	$-27.00K	USD	2 Qtrs
Prepaid expenses	`IncreaseDecreaseInPrepaidExpense`	$201.00K	USD	2 Qtrs
Accounts payables and accrued expense	`IncreaseDecreaseInAccountsPayableAndAccruedLiabilities`	$-410.00K	USD	2 Qtrs
Accrued advertising	`IncreaseDecreaseInAccruedAdvertising`	$-176.00K	USD	2 Qtrs
Accrued interest payable	`IncreaseDecreaseInInterestPayableNet`	$-405.00K	USD	2 Qtrs
Deferred dividend on mandatorily redeemable shares	`IncreaseDecreaseDeferredDividendOnMandatorilyRedeemableShares`	$78.00K	USD	2 Qtrs
Deferred income	`IncreaseDecreaseInDeferredIncomeTaxes`	$290.00K	USD	2 Qtrs
Total adjustments	`AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities`	$-1.39M	USD	2 Qtrs
Net cash used in operating activities	`NetCashProvidedByUsedInOperatingActivities`	$-503.00K	USD	2 Qtrs
Investment in equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$88.00K	USD	2 Qtrs
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-88.00K	USD	2 Qtrs
Issuance of mandatorily redeemable preferred shares and associated warrants	`IssuanceOfMandatorilyRedeemablePreferredSharesAndAssociatedWarrants`	$8.00M	USD	2 Qtrs
Proceeds from borrowings, net of issuance costs	`ProceedsFromDebtNetOfIssuanceCosts`	$1.88M	USD	2 Qtrs
Repayments of loans from FCCG	`RepaymentsOfDebt`	$7.90M	USD	2 Qtrs
Change in due from affiliates	`RepaymentsOfRelatedPartyDebt`	$218.00K	USD	2 Qtrs
Dividends paid in cash	`PaymentsOfDividends`	$240.00K	USD	2 Qtrs
Deposit toward potential equity issue	`DepositTowardPotentialEquityIssue`	$-7.00K	USD	2 Qtrs
Net cash provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$1.51M	USD	2 Qtrs
Net increase in cash	`CashPeriodIncreaseDecrease`	$923.00K	USD	2 Qtrs
Cash at beginning of period	`Cash`	$32.00K	USD	Point-in-time
Cash at beginning of period	`Cash`	$955.00K	USD	Point-in-time
Cash at end of period	`Cash`	$32.00K	USD	Point-in-time
Cash at end of period	`Cash`	$955.00K	USD	Point-in-time
Cash paid for interest	`InterestPaidNet`	$1.32M	USD	2 Qtrs
Cash paid for income taxes	`IncomeTaxesPaidNet`	$116.00K	USD	2 Qtrs
Assets acquired under capital leases and accrued expenses	`FairValueOfAssetsAcquired`	$121.00K	USD	2 Qtrs
Dividends payable on common stock	`DividendsPayableOnCommonStock`	$1.35M	USD	2 Qtrs
Dividends reinvested in common stock	`DividendsReinvestedInCommonStock`	$960.00K	USD	2 Qtrs
Note payable to FCCG converted to common and preferred stock	`NotePayableToFccgConvertedToCommonAndPreferredStock`	$9.27M	USD	2 Qtrs
Director fees converted to common stock	`DirectorFeesConvertedToCommonStock`	$330.00K	USD	2 Qtrs
Income taxes payable offset against amounts due from affiliates	`IncomeTaxesPayableOffsetAgainstAmountsDueFromAffiliates`	$204.00K	USD	2 Qtrs

Stockholders Equity 13 line items

Line Item	Tag	Value	Unit	Period
Balance, Beginning	`StockholdersEquity`	$2.01M	USD	Point-in-time
Balance, Beginning	`StockholdersEquity`	$6.59M	USD	Point-in-time
Cumulative-effect adjustment from adoption of ASU 2014-09, Revenue from Contracts with Customers	`CumulativeEffectAdjustmentFromAdoption`	$-2.67M	USD	2 Qtrs
Net income	`NetIncomeLoss`	$373.00K	USD	1 Quarter
Net income	`NetIncomeLoss`	$882.00K	USD	2 Qtrs
Dividends on common stock	`DividendsCommonStock`	$2.55M	USD	2 Qtrs
Issuance of stock in lieu of director fees payable	`StockIssuedDuringPeriodValueOther`	$330.00K	USD	2 Qtrs
Issuance of common stock in payment of related party note	`IssuanceOfCommonStockInPaymentOfRelatedPartyNote`	$7.27M	USD	2 Qtrs
Issuance of stock in lieu of dividend payable to FCCG	`IssuanceOfStockInLieuOfDividendPayable`	$960.00K	USD	2 Qtrs
Issuance of warrants to purchase common stock	`IssuanceOfWarrantsToPurchaseCommonStock`	$112.00K	USD	2 Qtrs
Share-based compensation	`StockIssuedDuringPeriodValueShareBasedCompensationGross`	$245.00K	USD	2 Qtrs
Balance, Ending	`StockholdersEquity`	$2.01M	USD	Point-in-time
Balance, Ending	`StockholdersEquity`	$6.59M	USD	Point-in-time

Data is extracted from SEC EDGAR XBRL filings. Values shown are as reported in the filing.