Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 29, 2019 | Nov. 18, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | Giggles N' Hugs, Inc. | |
Entity Central Index Key | 0001381435 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 29, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-29 | |
Entity Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 170,574,080 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Current assets: | ||
Cash and equivalents | $ 3,881 | $ 57,642 |
Inventory | 23,132 | 23,860 |
Prepaid expenses, other | 21,114 | 22,458 |
Total current assets | 48,127 | 103,960 |
Property and Equipment, net of accumulated depreciation and amortization of $1,847,645 and $1,708,865 | 359,906 | 507,844 |
Other assets | 2,620 | 2,620 |
Right of use asset, net | 774,703 | |
Total assets | 1,185,356 | 614,424 |
Current liabilities: | ||
Accounts payable | 763,826 | 621,454 |
Incentive from lessor - current portion | 117,460 | |
Note Payable - lessor, in default | 420,881 | 420,881 |
Accrued expenses | 175,370 | 157,368 |
Accrued officers salary | 510,962 | 466,541 |
Current portion of lease liability | 340,290 | |
Deferred revenue | 14,345 | 16,964 |
Convertible note payable | 50,000 | 50,000 |
Total current liabilities | 2,275,674 | 1,850,668 |
Long-term liabilities: | ||
Incentive from lessor - long-term | 433,379 | |
Deferred gain | 280,890 | 332,478 |
Lease liability | 898,125 | |
Total long-term liabilities | 1,179,015 | 765,857 |
Total liabilities | 3,454,689 | 2,616,525 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Common stock, $0.001 par value, 1,125,000,000 shares authorized, 169,074,080 and 168,424,080 shares issued and outstanding as of September 29, 2019 and December 30, 2018, respectively | 169,074 | 168,424 |
Common stock issuable (1,397,619 shares as of September 29, 2019 and December 30, 2018, respectively) | 293,535 | 293,535 |
Additional paid-in capital | 10,639,494 | 10,458,959 |
Accumulated deficit | (13,371,436) | (12,923,019) |
Total stockholders' deficit | (2,269,333) | (2,002,101) |
Total liabilities and stockholders' deficit | $ 1,185,356 | $ 614,424 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization | $ 1,847,645 | $ 1,708,865 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,125,000,000 | 1,125,000,000 |
Common stock, shares issued | 169,074,080 | 168,424,080 |
Common stock, shares outstanding | 169,074,080 | 168,424,080 |
Common stock issuable, shares | 1,397,619 | 1,397,619 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Revenue | ||||
Net sales | $ 554,225 | $ 677,838 | $ 1,807,513 | $ 1,871,138 |
Costs and operating expenses | ||||
Cost of operations | 440,532 | 476,888 | 1,344,822 | 1,443,351 |
General and administrative expenses | 232,697 | 178,340 | 735,199 | 760,081 |
Depreciation and amortization | 36,782 | 56,211 | 138,781 | 176,361 |
Total operating expenses | 710,011 | 711,439 | 2,218,802 | 2,379,793 |
Loss from Operations | (155,786) | (33,601) | (411,289) | (508,655) |
Other expenses: | ||||
Loss on settlement | (400) | (1,400) | ||
Finance and interest expense | (12,701) | (10,850) | (34,728) | (36,986) |
Loss before provision for income taxes | (168,487) | (44,851) | (446,017) | (547,041) |
Provision for income taxes | (2,400) | |||
Net loss | $ (168,487) | $ (44,851) | $ (448,417) | $ (547,041) |
Net loss per share - basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding - basic and diluted | 168,724,080 | 165,867,413 | 168,924,080 | 160,599,026 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid in Capital [Member] | Common Stock Issuable [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2017 | $ 145,602 | $ 9,874,936 | $ 293,535 | $ (12,231,650) | $ (1,917,577) |
Balance, shares at Dec. 31, 2017 | 145,602,251 | ||||
Shares issued for cash | $ 19,792 | 573,963 | 593,755 | ||
Shares issued for cash, shares | 19,791,829 | ||||
Shares issued for employees compensation | $ 200 | 4,400 | 4,600 | ||
Shares issued for employees compensation, shares | 200,000 | ||||
Shares issued to settle accounts payable | $ 1,500 | 39,150 | 40,650 | ||
Shares issued to settle accounts payable, shares | 1,500,000 | ||||
Shares issued for professional services | $ 1,030 | 15,745 | 16,775 | ||
Shares issued for professional services, shares | 1,030,000 | ||||
Net loss | (547,041) | (547,041) | |||
Balance at Sep. 30, 2018 | $ 168,124 | 10,508,196 | 293,535 | (12,778,693) | (1,808,838) |
Balance, shares at Sep. 30, 2018 | 168,124,080 | ||||
Balance at Jul. 01, 2018 | $ 167,184 | 10,499,839 | 293,535 | (12,733,842) | (1,773,284) |
Balance, shares at Jul. 01, 2018 | 167,184,080 | ||||
Shares issued to settle accounts payable | $ 500 | 4,150 | 4,650 | ||
Shares issued to settle accounts payable, shares | 500,000 | ||||
Shares issued for professional services | $ 440 | 4,207 | 4,647 | ||
Shares issued for professional services, shares | 440,000 | ||||
Net loss | (44,851) | (44,851) | |||
Balance at Sep. 30, 2018 | $ 168,124 | 10,508,196 | 293,535 | (12,778,693) | (1,808,838) |
Balance, shares at Sep. 30, 2018 | 168,124,080 | ||||
Balance at Dec. 30, 2018 | $ 168,424 | 10,458,959 | 293,535 | (12,923,019) | (2,002,101) |
Balance, shares at Dec. 30, 2018 | 168,424,080 | ||||
Shares issued for employees compensation | $ 50 | 300 | 350 | ||
Shares issued for employees compensation, shares | 50,000 | ||||
Shares issued for professional services | $ 600 | 5,250 | 5,850 | ||
Shares issued for professional services, shares | 600,000 | ||||
Fair value of warrants issued to officers | 174,985 | 174,985 | |||
Net loss | (448,417) | (448,417) | |||
Balance at Sep. 29, 2019 | $ 169,074 | 10,639,494 | 293,535 | (13,371,436) | (2,269,333) |
Balance, shares at Sep. 29, 2019 | 169,074,080 | ||||
Balance at Jun. 30, 2019 | $ 168,924 | 10,582,449 | 293,535 | (13,202,949) | (2,158,041) |
Balance, shares at Jun. 30, 2019 | 168,924,080 | ||||
Shares issued for professional services | $ 150 | 1,050 | 1,200 | ||
Shares issued for professional services, shares | 150,000 | ||||
Fair value of warrants issued to officers | 55,995 | 55,995 | |||
Net loss | (168,487) | (168,487) | |||
Balance at Sep. 29, 2019 | $ 169,074 | $ 10,639,494 | $ 293,535 | $ (13,371,436) | $ (2,269,333) |
Balance, shares at Sep. 29, 2019 | 169,074,080 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 29, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (448,417) | $ (547,041) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 138,781 | 176,361 |
Stock-based compensation | 350 | 4,600 |
Loss on stock issuance for payable settlement | 1,400 | |
Interest and fees included in note payable | 3,520 | |
Shares issued for services | 5,850 | 16,775 |
Amortization of deferred gain | (51,588) | (51,588) |
Fair value of warrants issued to officers | 174,985 | |
Changes in operating assets and liabilities: | ||
Decrease (increase) in prepaid expenses and deposits | 1,344 | (3,587) |
Decrease in inventory | 728 | 1,103 |
Amortization of right of use asset | 137,293 | |
Increase (decrease) in accounts payable | 142,372 | (69,819) |
Decrease in lease incentive liability | (75,631) | |
Decrease (increase) in accrued expenses | 62,423 | (87,692) |
(Decrease) increase in deferred revenue | (2,619) | 14,775 |
Decrease in lease liability | (224,420) | |
Net cash provided by (used in) operating activities | (62,918) | (616,824) |
Cash flows from investing activities | ||
Adjustment of fixed assets | 9,157 | |
Net cash used in investing activities | 9,157 | |
Cash flows from financing activities | ||
Payments on promissory note payable | (5,000) | |
Proceeds from sale of common shares | 593,755 | |
Net cash provided by financing activities | 588,755 | |
NET DECREASE IN CASH | (53,761) | (28,069) |
CASH AT BEGINNING OF PERIOD | 57,642 | 131,336 |
CASH AT END OF PERIOD | 3,881 | 103,267 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Shares issued to settle accounts payable | 39,250 | |
Increase in right of use assent and lease liability upon adoption of ASC 842 | 1,462,835 | |
Adjustment of leasee incentive and right of use asset upon adoption of ASC 842 | $ 550,839 |
History and Organization
History and Organization | 9 Months Ended |
Sep. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
History and Organization | NOTE 1 – HISTORY AND ORGANIZATION Giggles N’ Hugs, Inc. (“GIGL Inc.” or the “Company”) was originally organized on September 17, 2004 under the laws of the State of Nevada, as Teacher’s Pet, Inc. GIGL Inc. was organized to sell teaching supplies and learning tools. On August 20, 2010, GIGL Inc. filed an amendment to its articles of incorporation to change its name to Giggles N’ Hugs, Inc. On December 30, 2011, GIGL Inc. completed the acquisition of all the issued and outstanding shares of GNH, Inc. (“GNH”), a Nevada corporation, pursuant to a Stock Exchange Agreement. For accounting purposes, the acquisition of GNH by GIGL Inc. has been recorded as a reverse merger. Giggles N Hugs restaurant concept brings together high-end, organic food with the play elements and entertainment for children. Giggles N Hugs offers an upscale, family-friendly atmosphere with a play area dedicated to children ages 10 and younger with nightly entertainment, such as magic shows, concerts, puppet shows, as well as activities and games which include face painting, dance parties, karaoke, and arts and crafts, The Company adopted a 52/53 week fiscal year ending on the Sunday closest to December 31st for financial reporting purposes. Fiscal year 2019 and 2018 consists of a year ending December 29, 2019 and December 30, 2018. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 2 – BASIS OF PRESENTATION The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US Dollars, have been prepared by the Company, without audit, 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 US generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 30, 2018 and notes thereto included in the Company’s annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports. The condensed consolidated balance sheet as of December 30, 2018 included herein was derived from the audited consolidated financial statements as of that date, but does not included all disclosures, including notes, required by GAAP. Results of operations for the interim periods may not be indicative of annual results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Going concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying condensed consolidated financial statements, during the thirty-nine weeks ended September 29, 2019, the Company incurred a net loss of $448,417, used cash in operations of $62,918, and had a stockholders’ deficit of $2,269,333 as of that date. In addition, the note payable to the Company’s landlord was in default. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to raise additional funds and implement its business plan. In addition, the Company’s independent registered public accounting firm in its report on the December 30, 2018 financial statements has raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company had cash on hand in the amount of $3,881 as of September 29, 2019. Management estimates that the current funds on hand will be sufficient to continue operations through December 29, 2019. Management is currently seeking additional funds, primarily through the issuance of debt and equity securities for cash to operate our business. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company can obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stock holders, in case or equity financing. Principles of consolidation The condensed consolidated financial statements include the accounts of Giggles N Hugs, Inc., GNH, Inc., GNH CC, Inc. for restaurant operations in Westfield Mall in Century City, California (which was closed June 30, 2016 due to a complete remodel of the Mall), GNH Topanga, Inc. for restaurant operations in Westfield Topanga Shopping Center in Woodland Hills, California, and Glendale Giggles N Hugs, Inc. for restaurant operations in Glendale Galleria in Glendale, California. Intercompany balances and transactions have been eliminated. Giggles N Hugs, Inc., GNH, Inc., GNH CC, Inc., GNH Topanga, Inc., and Glendale Giggles N Hugs, Inc. will be collectively referred herein to as the “Company”. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions used by management including assumptions made in impairment analysis of fixed assets, accruals of potential liabilities, valuation of derivative liabilities and equity securities issued for services and realization of deferred tax assets. Actual results could differ from those estimates. Revenue The Company recognized revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (ASC 606). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which includes (1) identifying the contract(s) or agreement(s) with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. Under ASC 606, revenue is recognized when performance obligations under the terms of a contract are satisfied, which occurs for the Company upon shipment or delivery of products or services to our customers based on written sales terms, which is also when control is transferred. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring the products or services to a customer. Leases Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. The adoption of ASC 842 on January 1, 2019 resulted in the recognition of operating lease right-of-use assets of $911,966 and, liabilities for operating leases of $1,462,835. As part of the entry to record the lease liability, the Company removed approximate $133,833 of deferred rent and $417,000 of landlord lease incentives that existed as of December 31, 2018. There was no cumulative-effect adjustment to accumulated deficit necessary. See Note 9 for further information regarding the adoption of ASC 842. Loss per common share Net loss per share is provided in accordance with ASC Subtopic 260-10. We present basic loss per share (“EPS”) and diluted EPS on the face of statements of operations. Basic EPS is computed by dividing reported losses by the weighted average shares outstanding. Except where the result would be anti-dilutive to income from continuing operations, diluted earnings per share has been computed assuming the conversion of the convertible long-term debt and the elimination of the related interest expense, and the exercise of stock options and warrants. Loss per common share has been computed using the weighted average number of common shares outstanding during the year. For the period ended September 29, 2019, the assumed conversion of convertible notes payable and the exercise of 52,964,917 stock warrants, and 115,000 options to acquire shares of common stock are anti-dilutive due to the Company’s net losses and are excluded in determining diluted loss per share. Stock-based compensation The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board whereas the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board (FASB) whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested, and the total stock-based compensation charge is recorded in the period of the measurement date. The fair value of the Company’s stock option and warrant grants is estimated using the Black-Scholes Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes Option Pricing model could materially affect compensation expense recorded in future periods. The Company also issues restricted shares of its common stock for share-based compensation programs to employees and non-employees. The Company measures the compensation cost with respect to restricted shares to employees based upon the estimated fair value at the date of the grant, and is recognized as expense over the period, which an employee is required to provide services in exchange for the award. For non-employees, the Company measures the compensation cost with respect to restricted shares based upon the estimated fair value at the measurement date which is either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Recent Accounting Standards Recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission are not believed by management to have a material impact on the Company’s present or future consolidated financial statements. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 4 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following at: September 29, 2019 December 30, 2018 Leasehold improvements $ 1,889,027 $ 1,889,027 Fixtures and equipment 60,310 60,310 Computer software and equipment 258,214 267,372 Property and equipment, total 2,207,551 2,216,709 Less: accumulated depreciation (1,847,645 ) (1,708,865 ) Property and equipment, net $ 359,906 $ 507,844 Depreciation and amortization expense for the thirteen weeks and thirty-nine weeks ended September 29, 2019 were $36,782 and $138,781, respectively, and for the thirteen weeks and thirty-nine weeks ended September 30, 2018 were $56,211 and $176,361, respectively. Repair and maintenance expense for the thirteen weeks and thirty-nine weeks ended September 29, 2019 were $16,464 and $41,909, respectively, and for thirteen weeks and thirty-nine weeks ended September 30, 2018 were $15,528 and $46,046, respectively. Management assesses the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. For the periods ended September 29, 2019 and December 30, 2018, there were no indications of further impairment based on management’s assessment of these assets. |
Note Payable from Lessor - In D
Note Payable from Lessor - In Default | 9 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Note Payable from Lessor - In Default | NOTE 5 – NOTE PAYABLE FROM LESSOR – In Default On February 12, 2013, the Company entered into a $700,000 Promissory Note Payable Agreement with GGP Limited Partnership (“Lender”) to be used by the Company for a portion of the construction work to be performed by the Company under the lease by and between the Company and Glendale II Mall Associates. On March 1, 2015, the Company and the lender renegotiated the terms of the Promissory Note and agreed to a new note with a principal balance due of $683,316. As part of the new agreement, the Lender waived principal and interest payments for two years beginning March 1, 2015. On August 12, 2016 the Company entered into a third amendment on its lease at The Glendale Galleria. The amendment covered several areas, including adjustment to percentage rent payable, reduced the minimum rent payable, along with the payment and principal of Promissory Note. The Promissory Note was adjusted to a balance due of $763,261 from $683,316, with no interest, payable in equal monthly instalments of $5,300 through maturity of Note on May 31, 2028. The Company imputed interest using a discount rate of 10% to determine a fair value of the note of $443,521. As of September 29, 2019, and December 30, 2018 the balance of note payable net of unamortized note discount was $420,881 and $420,881 respectively. The lender under the Note is GGP Limited Partnership (GGP). GGP is an affiliate of Glendale II Mall Associates, the lessor of the Company’s Glendale Mall restaurant location. In accordance with the note agreement, an event of default would occur if the Borrower defaults under the lease between the Company and Glendale II Mall Associates. Upon the occurrence of an event of default, the entire balance of the Note payable and accrued interest would become due and payable, and the balance due becomes subject to a default interest rate (which is 5% higher than the defined interest rate). As of September 29, 2019, the Company was delinquent in its payments to GGP under the note, and as such, the Note has been reflected as currently due and disclosed as in default. |
Convertible Note Payable
Convertible Note Payable | 9 Months Ended |
Sep. 29, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Note Payable | NOTE 6 – CONVERTIBLE NOTE PAYABLE On August 24, 2015, the Company entered into an unsecured Note Payable Agreement with an investor for which the Company issued a $50,000 Convertible Note Payable, which accrues interest at a rate of 5% per annum and matured on August 31, 2016. The Lender may also convert all or a portion of the Note Payable at any time into shares of common stock at a price of $0.10 per share. By oral agreement with the lender, the maturity date was extended, and the note is now considered to be due on demand. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 29, 2019 | |
Equity [Abstract] | |
Common Stock | NOTE 7 – COMMON STOCK Issuance of Common Stock During the thirty-nine weeks ended September 29, 2019, the Company granted and issued 600,000 shares of restricted common stock with a fair value of $5,850 for services. During the thirty-nine weeks ended September 29, 2019, the Company issued 50,000 shares of common stock at fair value of $350 for an employee. Employee Stock Options The following table summarizes the changes in the options outstanding at September 29, 2019, and the related prices for the shares of the Company’s common stock issued to employees of the Company under a non-qualified employee stock option plan. Stock Weighted Average Options Exercise Price Outstanding, December 30, 2018 115,000 $ 4.50 Granted - - Exercised - - Outstanding, September 29, 2019 115,000 $ 4.50 Exercisable, September 29, 2019 115,000 $ 4.50 As of September 29, 2019, the stock options had no intrinsic value. There were no options granted during the fiscal quarter ended September 29, 2019, and there was no stock-based compensation expense in connection with options granted to employees. Warrants On January 1, 2019, the Company entered into employee agreements with three individuals. In accordance with the agreements, the employees are to receive warrants of 32,997,000 at an exercise price of $0.0001. The Company calculated the fair value of the warrants to be $230,979 based on the stock price at the date of grant. During the period ended September 29, 2019, the Company amortized $174,984 of this amount as an expense which is included in general and administrative costs on the accompanying statement of operations. As of September 29, 2019 the remaining unamortized balance was $55,995 which will be amortized over the remainder of the year. The following table summarizes the changes in the warrants outstanding at September 29, 2019, and the related prices. A summary of the Company’s warrants as of September 29, 2019 is presented below: Weighted Average Exercise Warrants Price Outstanding, December 30, 2018 19,967,917 $ 0.07 Granted 32,997,000 0.007 Exercised - - Outstanding, September 29, 2019 52,964,917 $ 0.03 Exercise, September 29, 2019 52,964,917 $ 0.03 Weighted Weighted Average Weighted Range of Average Remaining Average Exercise Number Exercise Contractual Number Exercise Prices Outstanding Price Life Exercisable Price $0.01 ~ $0.37 19,967,917 $ 0.03 1.89 19,967,917 $ 0.07 32,997,000 0.0001 9.25 32,997,000 0.0001 52,964,917 11.58 52,964,917 The intrinsic value of the warrants outstanding as of September 29, 2019 was $167,000. |
Leases
Leases | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Leases | NOTE 9 – LEASES Deferred Gain On August 12, 2016, the Company entered into a third amendment on its lease at The Glendale Galleria. The amendment covered several areas, including adjustment to percentage rent payable, reduced the minimum rent payable and payment and principal of the Promissory Note payable to GGP. The Promissory Note was adjusted to a balance due of $763,262 from $683,316, with zero percent interest, payable in equal monthly instalments of $5,300 through maturity of Note on May 31, 2028, creating a gain on extinguishment of the old note of $220,686 (see Note 5). The change in the payment terms of the lease caused a change in the previously calculated deferred rent of $69,614. For reporting purposes, the Company determined that since the GGP Promissory Note and the related revision of the lease were agreed to at the same time, that the change in the lease payment terms and the reduced rent, and the issuance of the new note are directly related. In addition, past due rent of $164,987 was forgiven. As such the gain on the termination of the note of $220,686, the adjustment to the deferred rent in the aggregate amount of $69,614, and the forgiveness of past due rent of $164,987, resulting in an aggregate gain of $455,287 had been deferred, and is being amortized on the straight-line basis over the remaining life of the lease as an adjustment to rent expense. The balance of the deferred gain was $280,890 as of September 29, 2019. During the period ended September 29, 2019, $51,591 of deferred gain was amortized and offset to rent expense, resulting in a remaining deferred gain balance of $280,890 as of September 29, 2019 which will be amortized as an offset to rent expense over the remainder of the lease. Lease Obligations Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases Leases, The Company has operating lease agreements for Topanga and Glendale and with remaining lease terms of 2.7 years and 4.1 years, respectively. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and lease incentives were removed. The balance of the right of use asset at September 29, 2019 was $774,703, net of accumulated amortization of $77,390. The following is related to leases for the period: At Operating Leases Long-term right-of-use assets, net $ 774,703 Short-term operating lease liabilities $ 340,290 Long-term operating lease liabilities 898,125 Total operating lease liabilities $ 1,238,415 The Company’s total lease payment is as follows: 2019 110,301 2020 452,956 2021 469,398 2022 279,077 2023 151,172 Total lease payments 1,462,903 Less: note discount (224,488 ) Present value of lease liabilities $ 1,238,415 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 – COMMITMENTS AND CONTINGENCIES Employment Agreements Sean Richards Joey Parsi The employment agreement may be terminated by either party for any reason at any time. If Mr. Parsi’s employment is terminated by the Company with or without cause, Mr. Parsi will be entitled to receive a severance payment in the amount of 12 months of his base salary plus all unvested options, warrants and shares. Philip Gay Litigation As of September 29, 2019, there was no material outstanding litigation. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 29, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 11 – SUBSEQUENT EVENTS On October 8, 2019, the Company issued 1,500,000 common stock for services, with a fair value of $15,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 29, 2019 | |
Accounting Policies [Abstract] | |
Going Concern | Going concern The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying condensed consolidated financial statements, during the thirty-nine weeks ended September 29, 2019, the Company incurred a net loss of $448,417, used cash in operations of $62,918, and had a stockholders’ deficit of $2,269,333 as of that date. In addition, the note payable to the Company’s landlord was in default. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to raise additional funds and implement its business plan. In addition, the Company’s independent registered public accounting firm in its report on the December 30, 2018 financial statements has raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company had cash on hand in the amount of $3,881 as of September 29, 2019. Management estimates that the current funds on hand will be sufficient to continue operations through December 29, 2019. Management is currently seeking additional funds, primarily through the issuance of debt and equity securities for cash to operate our business. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company can obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stock holders, in case or equity financing. |
Principles of Consolidation | Principles of consolidation The condensed consolidated financial statements include the accounts of Giggles N Hugs, Inc., GNH, Inc., GNH CC, Inc. for restaurant operations in Westfield Mall in Century City, California (which was closed June 30, 2016 due to a complete remodel of the Mall), GNH Topanga, Inc. for restaurant operations in Westfield Topanga Shopping Center in Woodland Hills, California, and Glendale Giggles N Hugs, Inc. for restaurant operations in Glendale Galleria in Glendale, California. Intercompany balances and transactions have been eliminated. Giggles N Hugs, Inc., GNH, Inc., GNH CC, Inc., GNH Topanga, Inc., and Glendale Giggles N Hugs, Inc. will be collectively referred herein to as the “Company”. |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions used by management including assumptions made in impairment analysis of fixed assets, accruals of potential liabilities, valuation of derivative liabilities and equity securities issued for services and realization of deferred tax assets. Actual results could differ from those estimates. |
Revenue | Revenue The Company recognized revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (ASC 606). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which includes (1) identifying the contract(s) or agreement(s) with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. Under ASC 606, revenue is recognized when performance obligations under the terms of a contract are satisfied, which occurs for the Company upon shipment or delivery of products or services to our customers based on written sales terms, which is also when control is transferred. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring the products or services to a customer. |
Leases | Leases Prior to January 1, 2019, the Company accounted for leases under ASC 840, Accounting for Leases. Effective January 1, 2019, the Company adopted the guidance of ASC 842, Leases, which requires an entity to recognize a right-of-use asset and a lease liability for virtually all leases. The Company adopted ASC 842 using a modified retrospective approach. As a result, the comparative financial information has not been updated and the required disclosures prior to the date of adoption have not been updated and continue to be reported under the accounting standards in effect for those periods. The adoption of ASC 842 on January 1, 2019 resulted in the recognition of operating lease right-of-use assets of $911,966 and, liabilities for operating leases of $1,462,835. As part of the entry to record the lease liability, the Company removed approximate $133,833 of deferred rent and $417,000 of landlord lease incentives that existed as of December 31, 2018. There was no cumulative-effect adjustment to accumulated deficit necessary. See Note 9 for further information regarding the adoption of ASC 842. |
Loss Per Common Share | Loss per common share Net loss per share is provided in accordance with ASC Subtopic 260-10. We present basic loss per share (“EPS”) and diluted EPS on the face of statements of operations. Basic EPS is computed by dividing reported losses by the weighted average shares outstanding. Except where the result would be anti-dilutive to income from continuing operations, diluted earnings per share has been computed assuming the conversion of the convertible long-term debt and the elimination of the related interest expense, and the exercise of stock options and warrants. Loss per common share has been computed using the weighted average number of common shares outstanding during the year. For the period ended September 29, 2019, the assumed conversion of convertible notes payable and the exercise of 52,964,917 stock warrants, and 115,000 options to acquire shares of common stock are anti-dilutive due to the Company’s net losses and are excluded in determining diluted loss per share. |
Stock-Based Compensation | Stock-based compensation The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board whereas the value of the award is measured on the date of grant and recognized over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the Financial Accounting Standards Board (FASB) whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line basis. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested, and the total stock-based compensation charge is recorded in the period of the measurement date. The fair value of the Company’s stock option and warrant grants is estimated using the Black-Scholes Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes Option Pricing model could materially affect compensation expense recorded in future periods. The Company also issues restricted shares of its common stock for share-based compensation programs to employees and non-employees. The Company measures the compensation cost with respect to restricted shares to employees based upon the estimated fair value at the date of the grant, and is recognized as expense over the period, which an employee is required to provide services in exchange for the award. For non-employees, the Company measures the compensation cost with respect to restricted shares based upon the estimated fair value at the measurement date which is either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. |
Recent Accounting Standards | Recent Accounting Standards Recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission are not believed by management to have a material impact on the Company’s present or future consolidated financial statements. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following at: September 29, 2019 December 30, 2018 Leasehold improvements $ 1,889,027 $ 1,889,027 Fixtures and equipment 60,310 60,310 Computer software and equipment 258,214 267,372 Property and equipment, total 2,207,551 2,216,709 Less: accumulated depreciation (1,847,645 ) (1,708,865 ) Property and equipment, net $ 359,906 $ 507,844 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Equity [Abstract] | |
Summary of Stock Awards for Options | The following table summarizes the changes in the options outstanding at September 29, 2019, and the related prices for the shares of the Company’s common stock issued to employees of the Company under a non-qualified employee stock option plan. Stock Weighted Average Options Exercise Price Outstanding, December 30, 2018 115,000 $ 4.50 Granted - - Exercised - - Outstanding, September 29, 2019 115,000 $ 4.50 Exercisable, September 29, 2019 115,000 $ 4.50 |
Schedule of Stock Warrants Activity | A summary of the Company’s warrants as of September 29, 2019 is presented below: Weighted Average Exercise Warrants Price Outstanding, December 30, 2018 19,967,917 $ 0.07 Granted 32,997,000 0.007 Exercised - - Outstanding, September 29, 2019 52,964,917 $ 0.03 Exercise, September 29, 2019 52,964,917 $ 0.03 |
Schedule of Stock Warrants Outstanding | Weighted Weighted Average Weighted Range of Average Remaining Average Exercise Number Exercise Contractual Number Exercise Prices Outstanding Price Life Exercisable Price $0.01 ~ $0.37 19,967,917 $ 0.03 1.89 19,967,917 $ 0.07 32,997,000 0.0001 9.25 32,997,000 0.0001 52,964,917 11.58 52,964,917 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 29, 2019 | |
Leases [Abstract] | |
Schedule of Leases | The following is related to leases for the period: At Operating Leases Long-term right-of-use assets, net $ 774,703 Short-term operating lease liabilities $ 340,290 Long-term operating lease liabilities 898,125 Total operating lease liabilities $ 1,238,415 |
Schedule of Total Lease Payment | The Company’s total lease payment is as follows: 2019 110,301 2020 452,956 2021 469,398 2022 279,077 2023 151,172 Total lease payments 1,462,903 Less: note discount (224,488 ) Present value of lease liabilities $ 1,238,415 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jan. 02, 2019 | Dec. 30, 2018 | Jul. 01, 2018 | Dec. 31, 2017 | |
Net loss | $ (168,487) | $ (44,851) | $ (448,417) | $ (547,041) | |||||
Net cash used in operating activities | (62,918) | (616,824) | |||||||
Stockholders' deficit | (2,269,333) | $ (1,808,838) | (2,269,333) | $ (1,808,838) | $ (2,158,041) | $ (2,002,101) | $ (1,773,284) | $ (1,917,577) | |
Cash and equivalents | 3,881 | 3,881 | 57,642 | ||||||
Operating lease right-of-use assets | 774,703 | 774,703 | |||||||
Liabilities for operating leases | 1,238,415 | 1,238,415 | |||||||
Deferred rent | $ 133,833 | ||||||||
Landlord lease incentives | 417,000 | $ 433,379 | |||||||
Warrant [Member] | |||||||||
Anti-dilutive securities | 52,964,917 | ||||||||
Options to Acquire Shares of Common Stock [Member] | |||||||||
Anti-dilutive securities | 115,000 | ||||||||
ASU 2016-02 [Member] | |||||||||
Operating lease right-of-use assets | 911,966 | ||||||||
Liabilities for operating leases | $ 1,462,835 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 36,782 | $ 56,211 | $ 138,781 | $ 176,361 |
Repair and maintenance expenses | $ 16,464 | $ 15,528 | $ 41,909 | $ 46,046 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 1,889,027 | $ 1,889,027 |
Fixtures and equipment | 60,310 | 60,310 |
Computer software and equipment | 258,214 | 267,372 |
Property and equipment, total | 2,207,551 | 2,216,709 |
Less: accumulated depreciation | (1,847,645) | (1,708,865) |
Property and equipment, net | $ 359,906 | $ 507,844 |
Note Payable from Lessor - In_2
Note Payable from Lessor - In Default (Details Narrative) - USD ($) | Aug. 12, 2016 | Sep. 29, 2019 | Dec. 30, 2018 | Mar. 01, 2015 | Feb. 12, 2013 |
Promissory note principal balance | $ 420,881 | $ 420,881 | |||
Glendale II Mall Associates, LLC [Member] | |||||
Promissory notes payable face value | $ 683,316 | ||||
Repayment of debt, periodic payment | $ 5,300 | ||||
Debt maturity date | May 31, 2028 | ||||
Imputed interest discount rate | 10.00% | ||||
Fair value of note payable | $ 443,521 | ||||
Minimum default interest rate | 5.00% | ||||
Glendale II Mall Associates, LLC [Member] | Adjusted Balance [Member] | |||||
Promissory notes payable face value | $ 763,261 | ||||
Promissory Note Payable Agreement [Member] | GGP Limited Partnership [Member] | |||||
Promissory notes payable face value | $ 700,000 | ||||
Promissory note principal balance | $ 683,316 |
Convertible Note Payable (Detai
Convertible Note Payable (Details Narrative) - Unsecured Note Payable Agreement [Member] | Aug. 24, 2015USD ($)$ / shares |
Convertible note payable face amount | $ | $ 50,000 |
Convertible note payable interest rate | 5.00% |
Debt maturity date | Aug. 31, 2016 |
Convertible note payable conversion price per share | $ / shares | $ 0.10 |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) | Jan. 02, 2019 | Sep. 29, 2019 | Sep. 30, 2018 |
Shares issued during period restricted shares | 600,000 | ||
Shares issued during period restricted shares, value | $ 5,850 | ||
Shares issued during period, value | $ 593,755 | ||
Stock options intrinsic value | |||
Stock options, granted | |||
Stock-based compensation expense | |||
Intrinsic value of warrants outstanding | 167,000 | ||
Employment Agreement [Member] | |||
Number of warrants to be issued | 32,997,000 | ||
Warrant exercisable price per share | $ 0.0001 | ||
Fair value of warrants | $ 230,979 | ||
Warrants amortized amount | 174,984 | ||
Warrants unamortized amount | $ 55,995 | ||
Employee [Member] | |||
Shares issued during period | 50,000 | ||
Shares issued during period, value | $ 350 |
Common Stock - Summary of Stock
Common Stock - Summary of Stock Awards for Options (Details) | 9 Months Ended |
Sep. 29, 2019$ / sharesshares | |
Equity [Abstract] | |
Stock Options, Outstanding, Beginning balance | shares | 115,000 |
Stock Options, Granted | shares | |
Stock Options, Exercised | shares | |
Stock Options, Outstanding, Ending balance | shares | 115,000 |
Stock Options, Exercisable | shares | 115,000 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | $ 4.50 |
Weighted Average Exercise Price, Granted | $ / shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | 4.50 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 4.50 |
Common Stock - Schedule of Stoc
Common Stock - Schedule of Stock Warrants Activity (Details) | 9 Months Ended |
Sep. 29, 2019$ / sharesshares | |
Equity [Abstract] | |
Warrants, Outstanding, Beginning balance | shares | 19,967,917 |
Warrants, Granted | shares | 32,997,000 |
Warrants, Exercised | shares | |
Warrants, Outstanding, Ending balance | shares | 52,964,917 |
Warrants, Exercisable | shares | 52,964,917 |
Weighted Average Exercise Price, Outstanding, Beginning | $ / shares | $ 0.07 |
Weighted Average Exercise Price, Granted | $ / shares | 0.007 |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Exercise Price, Outstanding, Ending | $ / shares | 0.03 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 0.03 |
Common Stock - Schedule of St_2
Common Stock - Schedule of Stock Warrants Outstanding (Details) - Warrant [Member] | 9 Months Ended |
Sep. 29, 2019$ / sharesshares | |
Number of Options, Outstanding | shares | 52,964,917 |
Weighted Average Remaining Contractual Life | 11 years 6 months 29 days |
Number of Options, Exercisable | shares | 52,964,917 |
Range 1 [Member] | |
Range of Exercise Prices, Lower Range Limit | $ / shares | $ 0.01 |
Range of Exercise Prices, Upper Range Limit | $ / shares | $ 0.37 |
Number of Options, Outstanding | shares | 19,967,917 |
Weighted Average Exercise Price | $ / shares | $ 0.03 |
Weighted Average Remaining Contractual Life | 1 year 10 months 21 days |
Number of Options, Exercisable | shares | 19,967,917 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 0.07 |
Range 2 [Member] | |
Number of Options, Outstanding | shares | 32,997,000 |
Weighted Average Exercise Price | $ / shares | $ 0.0001 |
Weighted Average Remaining Contractual Life | 9 years 2 months 30 days |
Number of Options, Exercisable | shares | 32,997,000 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 0.0001 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | Aug. 12, 2016 | Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 | Jan. 02, 2019 | Dec. 30, 2018 |
Gain on extinguishment of old note | $ (400) | $ (1,400) | |||||
Operating lease right-of-use assets | 774,703 | 774,703 | |||||
Liabilities for operating leases | 1,238,415 | 1,238,415 | |||||
Deferred rent | $ 133,833 | ||||||
Landlord lease incentives | 417,000 | $ 433,379 | |||||
Accumulated amortization | $ 77,390 | ||||||
Operating Lease Agreements [Member] | |||||||
Incremental borrowing, description | Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. | ||||||
Operating Lease Agreements [Member] | Topanga [Member] | |||||||
Operating lease, remaining lease terms | 2 years 8 months 12 days | 2 years 8 months 12 days | |||||
Operating Lease Agreements [Member] | Glendale [Member] | |||||||
Operating lease, remaining lease terms | 4 years 1 month 6 days | 4 years 1 month 6 days | |||||
ASU 2016-02 [Member] | |||||||
Operating lease right-of-use assets | 911,966 | ||||||
Liabilities for operating leases | $ 1,462,835 | ||||||
Glendale II Mall Associates, LLC [Member] | |||||||
Promissory notes payable face value | $ 683,316 | ||||||
Notes payable accrued interest rate | 0.00% | ||||||
Repayment of debt, periodic payment | $ 5,300 | ||||||
Debt maturity date | May 31, 2028 | ||||||
Gain on extinguishment of old note | $ 220,686 | ||||||
Change in deferred rent past due | 69,614 | ||||||
Deferred rent past due, forgiveness | 164,987 | ||||||
Gain on termination of note | 220,686 | ||||||
Deferred gain remaining balance | 455,287 | $ 280,890 | |||||
Deferred gain amortized and offset to rent expense | $ 51,591 | ||||||
Glendale II Mall Associates, LLC [Member] | Adjusted Balance [Member] | |||||||
Promissory notes payable face value | $ 763,261 |
Leases - Schedule of Leases (De
Leases - Schedule of Leases (Details) - USD ($) | Sep. 29, 2019 | Dec. 30, 2018 |
Leases [Abstract] | ||
Long-term right-of-use assets, net | $ 774,703 | |
Short-term operating lease liabilities | 340,290 | |
Long-term operating lease liabilities | 898,125 | |
Total operating lease liabilities | $ 1,238,415 |
Leases - Schedule of Total Leas
Leases - Schedule of Total Lease Payment (Details) | Sep. 29, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 110,301 |
2020 | 452,956 |
2021 | 469,398 |
2022 | 279,077 |
2023 | 151,172 |
Total lease payments | 1,462,903 |
Less: note discount | (224,488) |
Present value of lease liabilities | $ 1,238,415 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - Employment Agreement [Member] | Jan. 02, 2019USD ($)$ / sharesshares |
Warrant exercise price per share | $ / shares | $ 0.0001 |
Mr. Sean Richards [Member] | |
Payments to employee | $ 101,500 |
Warrants exercisable shares | shares | 1,000,000 |
Warrants term | 10 years |
Warrant exercise price per share | $ / shares | $ 0.0001 |
Mr. Sean Richards [Member] | Maximum [Member] | |
Payments to employee | $ 15,000 |
Receive bonus in cash | 10,000 |
Mr. Joey Parsi [Member] | |
Payments to employee | $ 225,000 |
Warrants exercisable shares | shares | 25,997,000 |
Warrants term | 10 years |
Warrant exercise price per share | $ / shares | $ 0.0001 |
Mr. Joey Parsi [Member] | Maximum [Member] | |
Receive bonus in cash | $ 175,000 |
Mr. Phillip Gay [Member] | |
Warrants exercisable shares | shares | 6,000,000 |
Warrants term | 10 years |
Warrant exercise price per share | $ / shares | $ 0.0001 |
Percentage of warrant vesting | 25.00% |
Mr. Phillip Gay [Member] | Maximum [Member] | |
Receive bonus in cash | $ 75,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Oct. 08, 2019 | Sep. 29, 2019 | Sep. 30, 2018 | Sep. 29, 2019 | Sep. 30, 2018 |
Stock issued during period for services, value | $ 1,200 | $ 4,647 | $ 5,850 | $ 16,775 | |
Subsequent Event [Member] | |||||
Stock issued during period for services | 1,500,000 | ||||
Stock issued during period for services, value | $ 15,000 |