10-Q Filing

FAT BRANDS, INC CIK: 1705012 Q3 2018

Filing Information

Form Type	10-Q
Accession Number	`0001493152-18-016167`
Period End Date	20180930
Filing Date	20181114
Fiscal Year	2018
Fiscal Period	Q3
XBRL Instance	fat-20180930.xml

Filing Contents

This filing contains the following financial statements:

Balance Sheet 80 Income Statement 53 Cash Flow Statement 40 Stockholders Equity 16

Balance Sheet 80 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`	$689.00K	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
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
Cash	`Cash`	$32.00K	USD	Point-in-time
Cash	`Cash`	$1.86M	USD	Point-in-time
Accounts receivable, net of allowance for doubtful accounts of $689 and $679, respectively	`AccountsReceivableNetCurrent`	$2.23M	USD	Point-in-time
Accounts receivable, net of allowance for doubtful accounts of $689 and $679, respectively	`AccountsReceivableNetCurrent`	$918.00K	USD	Point-in-time
Common stock, par value	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Common stock, par value	`CommonStockParOrStatedValuePerShare`	$0.00	USD	Point-in-time
Trade notes receivable, net of allowance for doubtful accounts of $17	`TradeNotesReceivableCurrent`	$77.00K	USD	Point-in-time
Common stock, shares authorized	`CommonStockSharesAuthorized`	25.00M	shares	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`	$83.00K	USD	Point-in-time
Other current assets	`OtherAssetsCurrent`	$774.00K	USD	Point-in-time
Common stock, shares issued	`CommonStockSharesIssued`	10.00M	shares	Point-in-time
Common stock, shares issued	`CommonStockSharesIssued`	11.35M	shares	Point-in-time
Other current assets	`OtherAssetsCurrent`	$153.00K	USD	Point-in-time
Total current assets	`AssetsCurrent`	$4.95M	USD	Point-in-time
Common stock, shares outstanding	`CommonStockSharesOutstanding`	11.35M	shares	Point-in-time
Total current assets	`AssetsCurrent`	$1.18M	USD	Point-in-time
Common stock, shares outstanding	`CommonStockSharesOutstanding`	10.00M	shares	Point-in-time
Notes receivable - noncurrent, net of allowance for doubtful accounts of $17	`TradeNotesReceivableNoncurrent`	$2.46M	USD	Point-in-time
Notes receivable - noncurrent, net of allowance for doubtful accounts of $17	`TradeNotesReceivableNoncurrent`	$346.00K	USD	Point-in-time
Due from affiliates	`DueFromAffiliates`	$7.96M	USD	Point-in-time
Due from affiliates	`DueFromAffiliates`	$13.00M	USD	Point-in-time
Deferred income taxes	`DeferredTaxAssetsLiabilitiesNetNoncurrent`	$937.00K	USD	Point-in-time
Deferred income taxes	`DeferredTaxAssetsLiabilitiesNetNoncurrent`	$1.77M	USD	Point-in-time
Goodwill	`Goodwill`	$7.36M	USD	Point-in-time
Goodwill	`Goodwill`	$8.11M	USD	Point-in-time
Other intangible assets, net	`IntangibleAssetsNetExcludingGoodwill`	$11.01M	USD	Point-in-time
Other intangible assets, net	`IntangibleAssetsNetExcludingGoodwill`	$21.87M	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$404.00K	USD	Point-in-time
Other assets	`OtherAssetsNoncurrent`	$7.00K	USD	Point-in-time
Buffalo's creative and advertising fund	`CreativeAndAdvertisingFund`	$436.00K	USD	Point-in-time
Buffalo's creative and advertising fund	`CreativeAndAdvertisingFund`	-	USD	Point-in-time
Total assets	`Assets`	$29.24M	USD	Point-in-time
Total assets	`Assets`	$52.56M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$2.44M	USD	Point-in-time
Accounts payable	`AccountsPayableCurrent`	$3.35M	USD	Point-in-time
Deferred income	`DeferredTaxLiabilitiesCurrent`	$1.14M	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`	$2.51M	USD	Point-in-time
Accrued advertising	`AccruedAdvertisingCurrent`	$164.00K	USD	Point-in-time
Accrued advertising	`AccruedAdvertisingCurrent`	$348.00K	USD	Point-in-time
Accrued interest payable	`InterestPayableCurrent`	$671.00K	USD	Point-in-time
Accrued interest payable	`InterestPayableCurrent`	$405.00K	USD	Point-in-time
Dividend payable on mandatorily redeemable preferred shares	`DividendPayableOnRedeemablePreferredShares`	$321.00K	USD	Point-in-time
Dividend payable on mandatorily redeemable preferred shares	`DividendPayableOnRedeemablePreferredShares`	-	USD	Point-in-time
Current portion of long-term debt	`LongTermDebtCurrent`	$55.00K	USD	Point-in-time
Current portion of long-term debt	`LongTermDebtCurrent`	-	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$6.72M	USD	Point-in-time
Total current liabilities	`LiabilitiesCurrent`	$8.21M	USD	Point-in-time
Deferred income - noncurrent	`DeferredTaxLiabilitiesNoncurrent`	$6.64M	USD	Point-in-time
Deferred income - noncurrent	`DeferredTaxLiabilitiesNoncurrent`	$1.94M	USD	Point-in-time
Long-term debt, net	`LongTermDebtNoncurrent`	$14.94M	USD	Point-in-time
Long-term debt, net	`LongTermDebtNoncurrent`	-	USD	Point-in-time
Mandatorily redeemable preferred shares, net	`RedeemablePreferredShares`	$14.18M	USD	Point-in-time
Mandatorily redeemable preferred shares, net	`RedeemablePreferredShares`	-	USD	Point-in-time
Deferred dividend payable on mandatorily redeemable preferred shares	`DeferredDividendPayableOnMandatorilyRedeemablePreferredShares`	-	USD	Point-in-time
Deferred dividend payable on mandatorily redeemable preferred shares	`DeferredDividendPayableOnMandatorilyRedeemablePreferredShares`	$126.00K	USD	Point-in-time
Notes payable to FCCG	`LongTermNotesPayable`	$18.12M	USD	Point-in-time
Notes payable to FCCG	`LongTermNotesPayable`	-	USD	Point-in-time
Buffalo's creative and advertising fund - contra	`CreativeAndAdvertisingFundContra`	-	USD	Point-in-time
Buffalo's creative and advertising fund - contra	`CreativeAndAdvertisingFundContra`	$436.00K	USD	Point-in-time
Total liabilities	`Liabilities`	$44.08M	USD	Point-in-time
Total liabilities	`Liabilities`	$27.23M	USD	Point-in-time
Commitments and contingencies (Note 17)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Commitments and contingencies (Note 17)	`CommitmentsAndContingencies`	-	USD	Point-in-time
Common stock, $.0001 par value; 25,000,000 shares authorized; 11,353,014 and 10,000,000 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	`CommonStockValue`	$2.62M	USD	Point-in-time
Common stock, $.0001 par value; 25,000,000 shares authorized; 11,353,014 and 10,000,000 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	`CommonStockValue`	$10.87M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-2.39M	USD	Point-in-time
Accumulated deficit	`RetainedEarningsAccumulatedDeficit`	$-613.00K	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$2.01M	USD	Point-in-time
Total stockholders' equity	`StockholdersEquity`	$8.47M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$29.24M	USD	Point-in-time
Total liabilities and stockholders' equity	`LiabilitiesAndStockholdersEquity`	$52.56M	USD	Point-in-time

Income Statement 53 line items

Line Item	Tag	Value	Unit	Period
Royalties	`RoyaltiesRevenue`	$8.80M	USD	3 Qtrs
Royalties	`RoyaltiesRevenue`	$3.37M	USD	1 Quarter
Franchise fees	`InitialFranchiseFees`	$1.34M	USD	1 Quarter
Franchise fees	`InitialFranchiseFees`	$2.04M	USD	3 Qtrs
Store opening fees	`PreOpeningCosts`	$205.00K	USD	3 Qtrs
Store opening fees	`PreOpeningCosts`	$100.00K	USD	1 Quarter
Advertising fees	`AdvertisingRevenues`	$1.04M	USD	1 Quarter
Advertising fees	`AdvertisingRevenues`	$2.26M	USD	3 Qtrs
Management fees	`ManagementFeeExpense`	$13.00K	USD	1 Quarter
Management fees	`ManagementFeeExpense`	$45.00K	USD	3 Qtrs
Total revenue	`Revenues`	$5.86M	USD	1 Quarter
Total revenue	`Revenues`	$13.36M	USD	3 Qtrs
Compensation and employee benefits	`EmployeeBenefitsAndShareBasedCompensation`	$1.50M	USD	1 Quarter
Compensation and employee benefits	`EmployeeBenefitsAndShareBasedCompensation`	$4.29M	USD	3 Qtrs
Travel and entertainment	`TravelAndEntertainmentExpense`	$177.00K	USD	1 Quarter
Travel and entertainment	`TravelAndEntertainmentExpense`	$503.00K	USD	3 Qtrs
Professional fees	`ProfessionalFees`	$513.00K	USD	1 Quarter
Professional fees	`ProfessionalFees`	$1.07M	USD	3 Qtrs
Advertising expense	`AdvertisingExpense`	$1.04M	USD	1 Quarter
Advertising expense	`AdvertisingExpense`	$2.26M	USD	3 Qtrs
Other	`OtherGeneralAndAdministrativeExpense`	$532.00K	USD	1 Quarter
Other	`OtherGeneralAndAdministrativeExpense`	$1.36M	USD	3 Qtrs
Total general and administrative expenses	`GeneralAndAdministrativeExpense`	$9.48M	USD	3 Qtrs
Total general and administrative expenses	`GeneralAndAdministrativeExpense`	$3.75M	USD	1 Quarter
Income from operations	`OperatingIncomeLoss`	$3.88M	USD	3 Qtrs
Income from operations	`OperatingIncomeLoss`	$2.11M	USD	1 Quarter
Interest expense, net	`InterestExpense`	$1.43M	USD	3 Qtrs
Interest expense, net	`InterestExpense`	$991.00K	USD	1 Quarter
Interest expense related to mandatorily redeemable preferred shares	`InterestExpenseOther`	$437.00K	USD	1 Quarter
Interest expense related to mandatorily redeemable preferred shares	`InterestExpenseOther`	$515.00K	USD	3 Qtrs
Depreciation and amortization	`DepreciationAndAmortization`	$193.00K	USD	3 Qtrs
Depreciation and amortization	`DepreciationAndAmortization`	$120.00K	USD	1 Quarter
Other expense, net	`OtherNonoperatingIncomeExpense`	$-352.00K	USD	1 Quarter
Other expense, net	`OtherNonoperatingIncomeExpense`	$-355.00K	USD	3 Qtrs
Total non-operating expense	`NonoperatingIncomeExpense`	$-1.90M	USD	1 Quarter
Total non-operating expense	`NonoperatingIncomeExpense`	$-2.49M	USD	3 Qtrs
Income before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$1.39M	USD	3 Qtrs
Income before taxes	`IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest`	$209.00K	USD	1 Quarter
Income tax expense	`IncomeTaxExpenseBenefit`	$495.00K	USD	3 Qtrs
Income tax expense	`IncomeTaxExpenseBenefit`	$199.00K	USD	1 Quarter
Net income	`NetIncomeLoss`	$98.00K	USD	Point-in-time
Net income	`NetIncomeLoss`	$892.00K	USD	3 Qtrs
Net income	`NetIncomeLoss`	$10.00K	USD	1 Quarter
Basic income per common share	`EarningsPerShareBasic`	$0.08	USD	3 Qtrs
Basic income per common share	`EarningsPerShareBasic`	-	USD	1 Quarter
Basic weighted average shares outstanding	`WeightedAverageNumberOfSharesOutstandingBasic`	10.50M	shares	3 Qtrs
Basic weighted average shares outstanding	`WeightedAverageNumberOfSharesOutstandingBasic`	11.32M	shares	1 Quarter
Diluted income per common share	`EarningsPerShareDiluted`	$0.08	USD	3 Qtrs
Diluted income per common share	`EarningsPerShareDiluted`	-	USD	1 Quarter
Diluted weighted average shares outstanding	`WeightedAverageNumberOfDilutedSharesOutstanding`	10.51M	shares	3 Qtrs
Diluted weighted average shares outstanding	`WeightedAverageNumberOfDilutedSharesOutstanding`	11.33M	shares	1 Quarter
Cash dividends declared per common share	`PreferredStockDividendsPerShareDeclared`	-	USD	1 Quarter
Cash dividends declared per common share	`PreferredStockDividendsPerShareDeclared`	$0.24	USD	3 Qtrs

Cash Flow Statement 40 line items

Line Item	Tag	Value	Unit	Period
Net income	`NetIncomeLoss`	$98.00K	USD	Point-in-time
Net income	`NetIncomeLoss`	$892.00K	USD	3 Qtrs
Net income	`NetIncomeLoss`	$10.00K	USD	1 Quarter
Deferred income taxes	`DeferredIncomeTaxesAndTaxCredits`	$-22.00K	USD	3 Qtrs
Depreciation and amortization	`DepreciationAndAmortization`	$193.00K	USD	3 Qtrs
Depreciation and amortization	`DepreciationAndAmortization`	$120.00K	USD	1 Quarter
Share-based compensation	`ShareBasedCompensation`	$370.00K	USD	3 Qtrs
Accretion of long-term debt	`AccretionOfLongtermDebt`	$413.00K	USD	3 Qtrs
Accretion of Series A and Series A-1 Mandatorily Redeemable Preferred Shares	`AccretionOfSeriesAndSeriesAOneMandatorilyRedeemablePreferredShares`	$-18.00K	USD	3 Qtrs
Accounts receivable	`IncreaseDecreaseInAccountsReceivable`	$805.00K	USD	3 Qtrs
Trade notes receivable	`IncreaseDecreaseInNotesReceivableCurrent`	$-64.00K	USD	3 Qtrs
Prepaid expenses	`IncreaseDecreaseInPrepaidExpense`	$362.00K	USD	3 Qtrs
Accounts payables and accrued expense	`IncreaseDecreaseInAccountsPayableAndAccruedLiabilities`	$1.03M	USD	3 Qtrs
Accrued advertising	`IncreaseDecreaseInAccruedAdvertising`	$-475.00K	USD	3 Qtrs
Accrued interest payable	`IncreaseDecreaseInInterestPayableNet`	$259.00K	USD	3 Qtrs
Dividend payable on mandatorily redeemable shares	`IncreaseDecreaseDeferredDividendOnMandatorilyRedeemableShares`	$447.00K	USD	3 Qtrs
Deferred income	`IncreaseDecreaseInDeferredIncomeTaxes`	$1.67M	USD	3 Qtrs
Total adjustments	`AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivities`	$-532.00K	USD	3 Qtrs
Net cash provided by operating activities	`NetCashProvidedByUsedInOperatingActivities`	$360.00K	USD	3 Qtrs
Payments made in connection with acquisition, net	`PaymentsForPreviousAcquisition`	$7.68M	USD	3 Qtrs
Additions to property and equipment	`PaymentsToAcquirePropertyPlantAndEquipment`	$139.00K	USD	3 Qtrs
Net cash used in investing activities	`NetCashProvidedByUsedInInvestingActivities`	$-7.82M	USD	3 Qtrs
Issuance of mandatorily redeemable preferred shares and associated warrants, net	`IssuanceOfMandatorilyRedeemablePreferredSharesAndAssociatedWarrants`	$7.98M	USD	3 Qtrs
Proceeds from borrowings and associated warrants, net of issuance costs	`ProceedsFromDebtNetOfIssuanceCosts`	$17.10M	USD	3 Qtrs
Repayments of borrowings	`RepaymentsOfShortTermDebt`	$10.85M	USD	3 Qtrs
Change in due from affiliates	`RepaymentsOfRelatedPartyDebt`	$4.26M	USD	3 Qtrs
Dividends paid in cash	`PaymentsOfDividends`	$632.00K	USD	3 Qtrs
Other	`DepositTowardPotentialEquityIssue`	$-50.00K	USD	3 Qtrs
Net cash provided by financing activities	`NetCashProvidedByUsedInFinancingActivities`	$9.28M	USD	3 Qtrs
Net increase in cash	`CashPeriodIncreaseDecrease`	$1.83M	USD	3 Qtrs
Cash at beginning of period	`Cash`	$32.00K	USD	Point-in-time
Cash at beginning of period	`Cash`	$1.86M	USD	Point-in-time
Cash at end of period	`Cash`	$32.00K	USD	Point-in-time
Cash at end of period	`Cash`	$1.86M	USD	Point-in-time
Cash paid for interest	`InterestPaidNet`	$1.55M	USD	3 Qtrs
Cash paid for income taxes	`IncomeTaxesPaidNet`	$184.00K	USD	3 Qtrs
Dividends reinvested in common stock	`DividendsReinvestedInCommonStock`	$1.92M	USD	3 Qtrs
Note payable to FCCG converted to common and preferred stock	`NotePayableToFccgConvertedToCommonAndPreferredStock`	$9.27M	USD	3 Qtrs
Director fees converted to common stock	`DirectorFeesConvertedToCommonStock`	$420.00K	USD	3 Qtrs
Income taxes payable offset against amounts due from affiliates	`IncomeTaxesPayableOffsetAgainstAmountsDueFromAffiliates`	$74.00K	USD	3 Qtrs

Stockholders Equity 16 line items

Line Item	Tag	Value	Unit	Period
Balance, Beginning	`StockholdersEquity`	$2.01M	USD	Point-in-time
Balance, Beginning	`StockholdersEquity`	$8.47M	USD	Point-in-time
Cumulative-effect adjustment from adoption of ASU 2014-09, Revenue from Contracts with Customers	`CumulativeEffectAdjustmentFromAdoption`	$-2.67M	USD	3 Qtrs
Net income	`NetIncomeLoss`	$98.00K	USD	Point-in-time
Net income	`NetIncomeLoss`	$892.00K	USD	3 Qtrs
Net income	`NetIncomeLoss`	$10.00K	USD	1 Quarter
Dividends on common stock	`DividendsCommonStock`	$2.55M	USD	3 Qtrs
Issuance of common stock in lieu of director fees payable	`StockIssuedDuringPeriodValueOther`	$420.00K	USD	3 Qtrs
Issuance of common stock in payment of related party note	`IssuanceOfCommonStockInPaymentOfRelatedPartyNote`	$7.27M	USD	3 Qtrs
Issuance of common stock in lieu of dividend payable to FCCG	`IssuanceOfStockInLieuOfDividendPayable`	$1.92M	USD	3 Qtrs
Issuance of warrants to purchase common stock	`IssuanceOfWarrantsToPurchaseCommonStock`	$774.00K	USD	3 Qtrs
Stock offering costs	`StockOfferingCosts`	$-50.00K	USD	3 Qtrs
Value of common stock beneficial conversion feature of Series A-1 Preferred Stock	`ValueOfCommonStockBeneficialConversionFeatureOfSeriesAOnePreferredStock`	$90.00K	USD	3 Qtrs
Share-based compensation	`StockIssuedDuringPeriodValueShareBasedCompensationGross`	$370.00K	USD	3 Qtrs
Balance, Ending	`StockholdersEquity`	$2.01M	USD	Point-in-time
Balance, Ending	`StockholdersEquity`	$8.47M	USD	Point-in-time

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