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Company stores that were closed are included in discontinued operations in the accompanying Condensed

Consolidated Statement of Operations.

Portions of corporate administration and other have been allocated to segments.

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 29, 2014	Sep. 23, 2014	Dec. 29, 2013
Document and Entity Information
Entity Registrant Name	PIZZA INN HOLDINGS, INC /MO/
Document Type	10-K
Document Period End Date	Jun. 29, 2014
Amendment Flag	false
Entity Central Index Key	0000718332
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		9,317,672
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Entity Public Float			$ 44,400,000

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
Revenues:
REVENUES:	$ 42,224	$ 41,181
COSTS AND EXPENSES:
Cost of sales	36,325	34,767
Franchise expenses	2,931	2,390
General and administrative expenses	4,373	4,106
Pre-opening expenses	161	286
Impairment of long-lived assets and other lease charges	253	766
Bad debt	253	205
Interest expense	142	244
Total Expenses	44,438	42,764
LOSS FROM CONTINUING OPERATIONS BEFORE TAXES	(2,214)	(1,583)
Income tax benefit	(760)	(504)
LOSS FROM CONTINUING OPERATIONS.	(1,454)	(1,079)
Loss from discontinued operations, net of taxes	(113)	(182)
NET LOSS	$ (1,567)	$ (1,261)
LOSS PER SHARE OF COMMON STOCK - BASIC:
Loss from continuing operations Basic per share	$ (0.17)	$ (0.13)
Loss from discontinued operations Basic per share	(0.01)	(0.03)
Net loss Basic per share	(0.18)	(0.16)
LOSS PER SHARE OF COMMON STOCK - DILUTED:
Loss from continuing operations Diluted per shares	(0.16)	(0.13)
Loss from discontinued operations Diluted per share	(0.01)	(0.02)
Net loss Diluted per share	$ (0.17)	$ (0.15)
Weighted average common shares outstanding - basic	8,635	8,031
Weighted average common shares outstanding - diluted	9,173	8,310

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 29, 2014	Jun. 30, 2013
CURRENT ASSETS
Cash and cash equivalents	$ 2,796	$ 919
Accounts receivable, less allowance for doubtful accounts of $276 and $228, respectively	3,276	3,139
Notes receivable	81	292
Inventories	1,703	1,615
Income tax receivable	386	343
Deferred income tax assets	951	882
Prepaid expenses and other	173	307
Total current assets	9,366	7,497
LONG-TERM ASSETS
Property, plant and equipment, net	5,133	4,711
Long-term notes receivable	134	40
Long-term deferred tax asset	939	168
Deposits and other	396	119
Total assets	15,968	12,535
CURRENT LIABILITIES
Accounts payable - trade	2,023	1,572
Accrued expenses	926	792
Deferred rent	163	249
Deferred revenues	177	169
Bank debt	500	669
Total current liabilities	3,789	3,451
LONG-TERM LIABILITIES
Bank debt, net of current portion	267	1,856
Deferred rent, net of current portion	822	708
Deferred revenues, net of current portion	791	370
Deferred gain on sale of property	34	59
Other long-term liabilities	23	22
Total liabilities	5,726	6,466
COMMITMENTS AND CONTINGENCIES (See Notes F and J)
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; authorized 26,000,000 shares; issued 16,240,412 and 15,312,680 shares, respectively; outstanding 9,121,012 and 8,193,280 shares, respectively	162	153
Additional paid-in capital	15,905	10,174
Retained earnings	18,811	20,378
Treasury stock at cost 7,119,400 shares	(24,636)	(24,636)
Total shareholders' equity	10,242	6,069
Total Liabilities & Shareholders' Equity	$ 15,968	$ 12,535

CONSOLIDATED BALANCE SHEETS PARENTHETICALS - USD ($) shares in Thousands, $ in Thousands	Jun. 29, 2014	Jun. 30, 2013
Parentheticals
Accounts receivable, less allowance for Bad Debts	$ 276	$ 228
Common Stock, shares authorized	26,000,000	26,000,000
Common Stock, shares issued	16,240,412	15,312,680
Common Stock, shares outstanding	9,121,012	8,193,280
Treasury stock, Shares	7,119,400	7,119,400

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock Shares	Common Stock Amount	Additional Paid-in Capital	Retained Earnings	Treasury Stock Shares	Treasury Stock Amount	Total
BALANCE, at Jun. 24, 2012	8,021	151	9,154	21,639	(7,119)	(24,636)	6,308
BALANCE, at Jun. 30, 2013	8,193	153	10,174	20,378	(7,119)	(24,636)	6,069
Stock compensation expense			$ 150				$ 150
Stock options exercised							0
Sale of Stock	172	2	870				872
Net loss				$ (1,261)			$ (1,261)
BALANCE, at Jun. 29, 2014	9,121	162	15,905	18,811	(7,119)	(24,636)	10,242
Stock compensation expense			$ 68				$ 68
Stock options exercised	39		82				82
Sale of Stock	889	9	5,581				5,590
Net loss				$ (1,567)			$ (1,567)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,567)	$ (1,261)
Adjustments to reconcile net loss to cash (used in) provided by operating activities:
Impairment of fixed assets and other assets	253	766
Depreciation and amortization	1,454	1,304
(Gain) loss on the sale of assets	(97)	129
Provision for bad debt	48	25
Stock compensation expense	68	150
Deferred income taxes	(840)	(671)
Changes in operating assets and liabilities:
Notes and accounts receivable	(70)	(283)
Income tax receivable	(41)	88
Inventories	(88)	237
Prepaid expenses and other	(213)	247
Deferred revenue	404
Accounts payable - trade	451	10
Accrued expenses	163	(7)
Cash (used) provided by operating activities	(75)	734
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets	106	184
Capital expenditures	(2,068)	(2,244)
Cash used for investing activities	(1,962)	(2,060)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of bank debt		3,460
Repayments of bank debt	(1,758)	(2,677)
Proceeds from sale of stock	5,590	872
Proceeds from exercise of stock options	82
Cash provided by financing activities	3,914	1,655
Net increase in cash and cash equivalents	1,877	329
Cash and cash equivalents, beginning of year	919	590
Cash and cash equivalents, end of year	2,796	919
CASH PAID FOR:
Interest	142	296
Income taxes (refunded) paid	$ 17	$ (67)

Summary of Significant Accounting Policies

12 Months Ended

Jun. 29, 2014

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Description of Business:

Pizza Inn Holdings, Inc. and its subsidiaries (collectively referred to as the “Company”, or in the first person notations of “we”, “us” and “our”) operate and franchise pizza buffet, delivery/carry-out and express restaurants domestically and internationally under the trademark “Pizza Inn” and operate and franchise domestic fast casual restaurants under the trademarks “Pie Five Pizza Company” or “Pie Five”. We provide or facilitate the procurement and distribution of food, equipment and supplies to our domestic and international system of restaurants through our Norco Restaurant Services Company (“Norco”) division and through agreements with third party distributors.

As of June 29, 2014, we owned and operated 15 restaurants comprised of 13 Pie Five restaurants (“Pie Five Units”) and two Pizza Inn buffet restaurants (“Buffet Units”). As of that date, we also had seven franchised Pie Five Units and 251 franchised Pizza Inn restaurants. The 180 domestic franchised Pizza Inn restaurants were comprised of 103 Buffet Units, 24 delivery/carry-out restaurants (“Delco Units”) and 53 express restaurants (“Express Units”). The 71 international franchised Pizza Inn restaurants were comprised of 18 Buffet Units, 45 Delco Units and 8 Express Units. Domestic restaurants were located predominantly in the southern half of the United States, with Texas, North Carolina, Arkansas and Mississippi accounting for approximately 34%, 14%, 12% and 6%, respectively, of the total number of domestic restaurants.

Principles of Consolidation:

The consolidated financial statements include the accounts of Pizza Inn Holdings, Inc. and its subsidiaries, all of which are wholly owned. All appropriate inter-company balances and transactions have been eliminated.

Reclassifications:

Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

Cash and Cash Equivalents:

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Inventories:

Inventory, which consists primarily of food, paper products and supplies primarily warehoused by the Company’s third-party distributor, is stated at lower of cost or market, with cost determined according to the weighted average cost method. The valuation of inventory requires us to estimate the amount of obsolete and excess inventory. The determination of obsolete and excess inventory requires us to estimate the future demand for the Company’s products within specific time horizons, generally six months or less. If the Company’s demand forecast for specific products is greater than actual demand and the Company fails to reduce purchasing accordingly, the Company could be required to write down inventory, which would have a negative impact on the Company’s gross margin.

Closed Restaurants and Discontinued Operations:

The authoritative guidance on “Accounting for the Impairment or Disposal of Long-Lived Assets,” requires that discontinued operations that meet certain criteria be reflected in the statement of operations after results of continuing operations as a net amount. This guidance also requires that the operations of closed restaurants, including any impairment charges, be reclassified to discontinued operations for all periods presented.

The authoritative guidance on “Accounting for Costs Associated with Exit or Disposal Activities,” requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred. This authoritative guidance also establishes that fair value is the objective for initial measurement of the liability.

Discontinued operations include losses from two Pizza Inn locations in Texas. One is a leased building associated with a Company-owned restaurant closed during fiscal 2008. The other is results of operations for a Company-owned restaurant that was closed in the fourth quarter of fiscal 2014 due to declining sales.

Property, Plant and Equipment:

Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Repairs and maintenance are charged to operations as incurred while major renewals and betterments are capitalized. Upon the sale or disposition of a fixed asset, the asset and the related accumulated depreciation or amortization is removed from the accounts and the gain or loss is included in operations. The Company capitalizes interest on borrowings during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying asset and amortized over the estimated useful life of the asset.

Depreciation and amortization are computed on the straight-line method over the estimated useful lives of the assets or, in the case of leasehold improvements, over the term of the lease including any reasonably assured renewal periods, if shorter. The useful lives of the assets range from three to ten years.

Impairment of Long-Lived Asset and other Lease Charges:

The Company reviews long-lived assets for impairment when events or circumstances indicate that the carrying value of such assets may not be fully recoverable. Impairment is evaluated based on the sum of undiscounted estimated future cash flows expected to result from use of the assets compared to its carrying value. If impairment is recognized, the carrying value of the impaired asset is reduced to its fair value, based on discounted estimated future cash flows. During fiscal year 2014 and 2013, the Company tested its long-lived assets for impairment and recognized pre-tax, non-cash impairment charges of $0.3 million and $0.8 million, respectively, related to the carrying value of two Company-owned Buffet Units in Texas and three Company-owned Pie Five Units in Texas.

Accounts Receivable:

Accounts receivable consist primarily of receivables from food and supply sales and franchise royalties. The Company records a provision for doubtful receivables to allow for any amounts that may be unrecoverable based upon an analysis of the Company's prior collection experience, customer creditworthiness and current economic trends. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Finance charges may be accrued at a rate of 18% per year, or up to the maximum amount allowed by law, on past due receivables. The interest income recorded from finance charges is immaterial.

Notes Receivable:

Notes receivable primarily consist of accounts receivable from franchisees converted into notes. The majority of amounts and terms are contained under formal promissory and personal guarantee agreements. All notes allow for early payment without penalty. Fixed principle and interest payments are due weekly or monthly. Interest income is recognized monthly. Notes receivable mature at various dates through 2016 and bear interest at rates that range from 7% to 15% (8% average rate at June 29, 2014).

Management evaluates the creditworthiness of franchisees by considering credit history and sales to evaluate credit risk. Management determines interest rates based on credit risk of the underlining franchisee. The Company monitors payment history to determine whether or not a loan should be placed on a nonaccrual status or impaired.

The Company charges off notes receivable based on an account-by-account analysis of the borrower’s current economic conditions, monthly payments history and historical loss experience. The allowance for doubtful notes receivable is included with the allowance for doubtful accounts.

Notes receivable as of June 29, 2014 totaled $215,000, of which $81,000 is included in current assets, notes receivable and $134,000 is included in long-term notes receivable in the accompanying balance sheet.

The principal balance outstanding on the notes and advances receivable and expected principal collections for the next five years and thereafter were as follows as of June 29, 2014 (in thousands):

	Notes
	Receivable
2015		81
2016		10
2017		8
2018		12
2019 and thereafter		104
	$	215

There were no charge offs for the fiscal year ended June 29, 2014.

Income Taxes:

Income taxes are accounted for using the asset and liability method pursuant to the authoritative guidance on Accounting for Income Taxes. Deferred taxes are recognized for the tax consequences of "temporary differences" by applying enacted statutory tax rates applicable to future years to differences between the financial statement and carrying amounts and the tax bases of existing assets and liabilities. The effect on deferred taxes for a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes future tax benefits to the extent that realization of such benefits is more likely than not.

Management evaluates the deferred tax asset at the end of each fiscal quarter to determine if an allowance against the deferred tax asset is required, and at the end of fiscal years 2014 and 2013 determined that it was more likely than not that the deferred tax asset would be fully realized based on the expectation of future taxable income and the future reversal of temporary differences. Therefore, no allowance was recorded. This determination and future estimates could be impacted by changes in future taxable income, the results of tax strategies or changes in tax laws.

The Company follows authoritative guidance that prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that it has taken or expects to take on a tax return. This authoritative guidance requires that a company recognize in its financial statements the impact of tax positions that meet a “more likely than not” threshold, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of June 29, 2014 and June 30, 2013, the Company had no uncertain tax positions. Federal returns for tax years 2010 through 2013 remained open for examination as of June 29, 2014.

Pre-Opening Expense:

The Company's pre-opening costs are expensed as incurred and generally include payroll and other direct costs associated with training new managers and employees prior to opening a new restaurant, rent and other unit operating expenses incurred prior to opening, and promotional costs associated with the opening.

Revenue Recognition:

The Company recognizes food and supply revenue when products are delivered and the customer takes ownership and assumes risk of loss, collection of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sales price is fixed or determinable. The Company's Norco division sells food and supplies to franchisees on trade accounts under terms common in the industry. Norco sales are reflected under the caption "Food and supply sales." Shipping and handling costs billed to customers are recognized as revenue and the associated costs are included in cost of sales.

Franchise revenue consists of income from license fees, royalties, and area development and foreign master license sales. License fees are recognized as income when there has been substantial performance of the agreement by both the franchisee and the Company, generally at the time the restaurant is opened. Royalties are recognized as income when earned. For the years ended June 29, 2014 and June 30, 2013, 91% and 93%, respectively, of franchise revenue was comprised of recurring royalties.

Stock Options:

We account for stock options using the fair value recognition provisions of the authoritative guidance on Share-Based Payments. The Company uses the Black-Scholes formula to estimate the value of stock-based compensation for options granted to employees and directors and expects to continue to use this acceptable option valuation model in the future. The authoritative guidance also requires the benefits of tax deductions in excess of recognized compensation cost to be reported as a financing cash flow.

At June 29, 2014, the Company had one stock-based employee compensation plan, and one stock-based non-employee director compensation plan. Stock options under these plans are granted at exercise prices equal to the fair market value of the Company’s stock at the dates of grant. Generally those options vest ratably over various vesting periods. The Company’s stock-based compensation plans are described more fully in Note H.

Fair Value of Financial Instruments:

The carrying amounts of accounts receivable and accounts payable approximate fair value because of the short maturity of these instruments. The Company had approximately $0.8 million in bank debt at June 29, 2014. The fair value of bank debt approximated its carrying value at June 29, 2014.

Contingencies:

Provisions for legal settlements are accrued when payment is considered probable and the amount of loss is reasonably estimable in accordance with the authoritative guidance on Accounting for Contingencies. If the best estimate of cost can only be identified within a range and no specific amount within that range can be determined more likely than any other amount within the range, and the loss is considered probable, the minimum of the range is accrued. Legal and related professional services costs to defend litigation are expensed as incurred.

Use of Management Estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect its reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent liabilities. The Company bases its estimates on historical experience and other various assumptions that it believes are reasonable under the circumstances. Estimates and assumptions are reviewed periodically. Actual results could differ materially from estimates.

Fiscal Year:

The Company's fiscal year ends on the last Sunday in June. The fiscal year ended June 29, 2014 and the fiscal year ended June 30, 2013 contained 52 and 53 weeks, respectively.

Property, Plant, and Equipment

12 Months Ended

Jun. 29, 2014

Property, Plant, and Equipment:

Property, Plant and Equipment Disclosure

NOTE B – PROPERTY, PLANT AND EQUIPMENT:

Property, and plant and equipment consist of the following (in thousands):

	Estimated Useful	June 29,			June 30,
	Lives	2014			2013

Equipment, furniture and fixtures	3 - 7 yrs	$	4,864		$	4,668
Software	5 yrs		424			367
Vehicle	2 - 3 yrs		19			19
Leasehold improvements	10 yrs or lease term, if shorter		4,820			4,611
			10,127			9,665
Less: accumulated depreciation/amortization			(4,994	)		(4,954	)
		$	5,133		$	4,711

Depreciation and amortization expense was approximately $1.5 million and $1.3 million for the fiscal years ended June 29, 2014 and June 30, 2013, respectively.

Accrued Expneses

12 Months Ended

Jun. 29, 2014

Accrued Expenses

Accrued Expeses

NOTE C - ACCRUED EXPENSES:

Accrued expenses consist of the following (in thousands):

	June 29,		June 30,
	2014		2013
Compensation	$	455	$	388
Other		244		243
Professional fees		132		63
Insurance loss reserves		95		98

	$	926	$	792

Long-Term Debt

12 Months Ended

Jun. 29, 2014

Long-Term Debt

Long-Term Debt

NOTE D - LONG-TERM DEBT:

On August 28, 2012, the Company entered into a Loan and Security Agreement (the “F&M Loan Agreement”) with The F&M Bank & Trust Company (“F&M”) providing for a $2.0 million revolving credit facility (with a $500 thousand letter of credit subfacility), a $2.0 million fully funded term loan facility and a $6.0 million advancing term loan facility. An origination fee of 0.5% of the total credit facilities was paid at closing. At closing, F&M funded a $2.0 million term loan payable in 48 equal monthly installments of principal plus accrued interest at a fixed rate of 4.574% per annum. Amounts repaid under this fully funded term loan may not be reborrowed. Initial proceeds from the F&M Loan Agreement were used to repay amounts borrowed under a previous credit facility that subsequently was canceled.

On June 13, 2013 the Company entered into a First Amendment to the F&M Loan Agreement that revised certain financial covenants to address proceeds from the Company’s at-the-market offering of common stock. On September 10, 2013 the Company entered into a Second Amendment to the F&M Loan Agreement that specified the application of prepayments to the loan amortization schedule and revised certain definitions.

The Company could borrow, repay and reborrow under the revolving credit facility through August 28, 2014, at which time all amounts outstanding under the revolving credit facility would mature. The Company did not draw borrowings on the revolving credit facility during fiscal 2014 and has allowed it to expire. An unused commitment fee of 0.50% per annum was payable quarterly on the average unused portion of the revolving credit facility.

Through August 28, 2014, F&M had agreed to make up to $6.0 million in additional term loans to the Company. However, no amounts were outstanding on the advancing term loan facility at fiscal year end or the expiration of the advance period.

As security for the credit facilities, the Company has pledged substantially all of its assets including, but not limited to, accounts receivable, inventory and equipment. The F&M Loan Agreement contains various affirmative covenants which, among other things, require the Company to provide F&M with certain financial statements, compliance statements, reports and other information. The F&M Loan Agreement also contains various negative covenants which, among other things, require the Company to maintain certain financial ratios and restrict the ability of the Company to engage in certain activities. If an event of default occurs under the F&M Loan Agreement and any cure periods have expired, F&M may terminate all commitments under the credit facilities and declare all unpaid principal, interest and other amounts owing under the credit facilities to be immediately due and payable.

The Company was in compliance with all covenants under the F&M Loan Agreement as of June 29, 2014. As of June 29, 2014, the balance on the initial term loan facility was $0.8 million with an interest rate of 4.574% and scheduled monthly principle payments through September 1, 2016. As of June 29, 2014, the outstanding principal balance of the F&M term loan facility was payable as follows (in thousands):

	Bank
	Debt

2015	$	500
2016		267
2017		-
2018		-
2019		-
	$	767

Income Taxes

12 Months Ended

Jun. 29, 2014

Income Taxes

Income Taxes

NOTE E - INCOME TAXES:

Provision for income taxes from continuing operations consists of the following (in thousands):

	Year Ended
	June 29,			June 30,
	2014			2013
Current - Federal	$	-		$	-
Current - State		18			33
Deferred - Federal		(722	)		(533	)
Deferred - State		(56	)		(4	)
Provision for income taxes	$	(760	)	$	(504	)

Included in loss from discontinued operations is $59,000 and $94,000 of tax benefit for the fiscal years ended June 29, 2014 and June 30, 2013, respectively.

The effective income tax rate varied from the statutory rate for the years ended June 29, 2014 and June 30, 2013 as reflected below (in thousands):

	June 29,			June 30,
	2014			2013
Federal income taxes based on 34%
of pre-tax income	$	(763	)	$	(538	)
State income tax, net of federal effect		(52	)		22
Permanent adjustments		8			13
Other		47			(1	)
	$	(760	)	$	(504	)

The tax effects of temporary differences that give rise to the net deferred tax assets consisted of the following (in thousands):

	June 29,		June 30,
	2014		2013


Current
Reserve for bad debt	$	98	$	81
Deferred fees		54		52
Other reserves and accruals		798		749
		950		882
Non Current
Credit carryforwards		24		129
Net operating loss carryforwards		181		300
Depreciable assets		734		(261	)

Total gross deferred tax asset		1,889		1,050

Valuation allowance		-		-

Net deferred tax asset	$	1,889	$	1,050

At the end of fiscal 2014, the Company had net operating loss carryforwards totaling $2.0 million that are available to reduce future taxable income and will begin to expire in 2031. Management believes that future operations will generate sufficient taxable income, along with the reversal of temporary differences, to fully realize the net deferred tax asset.

Leases

12 Months Ended

Jun. 29, 2014

Leases:

Leases

NOTE F - LEASES:

Premises occupied by Company-owned restaurants are leased for initial terms of five to ten years, and each has multiple renewal terms. Certain lease agreements contain either a provision requiring additional rent if sales exceed specified amounts or an escalation clause based upon a predetermined multiple.

In fiscal 2007, the Company sold its corporate office building and distribution facility located at 3551 Plano Parkway, The Colony, Texas, and entered into a ten-year lease agreement for the corporate office building.

Future minimum rental payments under non-cancelable leases, net of subleases, with initial or remaining terms of one year or more at June 29, 2014 were as follows (in thousands):

	Operating
	Leases

2015	$	1,669
2016		1,609
2017		1,228
2018		849
2019		799
Thereafter		2,144
	$	8,298

Rental expense consisted of the following (in thousands):

	Year Ended
	June 29,			June 30,
	2014			2013

Minimum rentals	$	1,448		$	1,322
Sublease rentals		(182	)		(182	)
	$	1,266		$	1,140

Employee Benefits

12 Months Ended

Jun. 29, 2014

Employee Benefits

Employee Benefits

NOTE G - EMPLOYEE BENEFITS:

The Company has a tax advantaged savings plan that is designed to meet the requirements of Section 401(k) of the Internal Revenue Code (the “Code”). The current plan is a modified continuation of a similar savings plan established by the Company in 1985. Employees who have completed six months of service and are at least 21 years of age are eligible to participate in the plan. The plan provides that participating employees may elect to have between 1% and 15% of their compensation deferred and contributed to the plan subject to certain IRS limitations. Effective June 27, 2005, the Company contributes on behalf of each participating employee an amount equal to 50% of the employee’s contributions up to 4% of compensation. Separate accounts are maintained with respect to contributions made on behalf of each participating employee. Employer matching contributions and earnings thereon are invested in the same investments as each participant’s employee deferral. The plan is subject to the provisions of the Employee Retirement Income Security Act, as amended, and is a profit sharing plan as defined in Section 401(k) of the Code.

For the years ended June 29, 2014 and June 30, 2013, total matching contributions to the tax advantaged savings plan by the Company on behalf of participating employees were approximately $12,400 and $33,500, respectively.

Stock Options

12 Months Ended

Jun. 29, 2014

Stock Options

Stock Options

NOTE H - STOCK OPTIONS:

In June 2005, the 2005 Employee Incentive Stock Option Award Plan (the “2005 Employee Plan”) was approved by the Company’s shareholders with a plan effective date of June 23, 2005. Under the 2005 Employee Plan, officers and employees of the Company are eligible to receive options to purchase shares of the Company’s common stock. Options are granted at market value of the stock on the date of grant, are subject to various vesting and exercise periods as determined by the Compensation Committee of the Board of Directors, and may be designated as non-qualified or incentive stock options. A total of 1,000,000 shares of common stock are authorized for issuance under the 2005 Employee Plan. During the 2014 fiscal year, options to purchase 139,228 shares were granted under the 2005 Employee Plan. Also during the 2014 fiscal year, 39,144 shares of common stock were issued upon the exercise of options. As of June 29, 2014, there were 471,828 shares available to be issued under the plan.

The shareholders also approved the 2005 Non-Employee Directors Stock Award Plan (the “2005 Directors Plan”) in June 2005, to be effective as of June 23, 2005. Directors not employed by the Company are eligible to receive stock options under the 2005 Directors Plan. Options for common stock equal to twice the number of shares of common stock acquired during the previous fiscal year, up to 40,000 shares per year, are automatically granted to each non-employee director on the first day of each fiscal year. Options are granted at market value of the stock on the first day of each fiscal year, with vesting periods beginning at a minimum of six months and with exercise periods up to ten years. A total of 650,000 shares of Company common stock are authorized for issuance pursuant to the 2005 Directors Plan as amended. During the 2014 fiscal year, 8,664 options were granted under the 2005 Directors Plan, all of which were outstanding at June 29, 2014. As of June 29, 2014, there were 207,830 shares available to be issued under the plan.

A summary of stock option transactions under all of the Company’s stock option plans and information about fixed-price stock options is as follows:

	Year Ended
	June 29, 2014					June 30, 2013
				Weighted-					Weighted-
				Average					Average
				Exercise					Exercise
	Shares			Price		Shares			Price

Outstanding at beginning
of year		851,306		$	2.54		486,506		$	2.80

Granted		147,892		$	4.92		464,800		$	2.70
Exercised		(39,144	)	$	2.12		-
Forfeited/Canceled/Expired		(38,856	)	$	3.15		(100,000	)	$	4.72

Outstanding at end of year		921,198		$	2.92		851,306		$	2.54

Exercisable at end of year		473,659		$	2.43		459,439		$	2.42

Weighted-average fair value of
options granted during the year				$	3.64				$	1.29

Total intrinsic value of
options exercised				$	82,845				$	-

At June 29, 2014, the total intrinsic value of options outstanding was $3.1 million and of options exercisable was $1.2 million.

The following table provides information on options outstanding and options exercisable as of June 29, 2014:

	Options Outstanding			Options Exercisable
		Weighted-
		Average
	Options	Remaining	Weighted-	Options	Weighted-
Range of	Outstanding	Contractual	Average	Exercisable	Average
Exercise Prices	at June 29, 2014	Life (Years)	Exercise Price	at June 29, 2014	Exercise Price

$1.55 - 1.95	136,506	5.2	$1.90	136,506	$1.90
$1.96 - 2.35	130,000	4.0	$2.32	130,000	$2.32
$2.36 - 2.75	412,000	8.2	$2.57	88,000	$2.65
$2.76 - 3.30	115,000	6.4	$3.13	115,000	$3.13
$3.31 - 3.81	41,528	8.5	$3.81	4,153	$0.00
$5.51 - 5.74	8,664	0.7	$5.74	-	$0.00
$5.95 - 6.05	62,500	9.8	$6.02	-	$0.00
$8.16	15,000	9.4	$8.16	-	$0.00
	921,198	7.0	$2.92	473,659	$2.43

We determine fair value following the authoritative guidance as follows:

Valuation and Amortization Method. We estimate the fair value of share-based awards granted using the Black-Scholes option valuation model. We amortize the fair value of all awards on a straight-line basis over the requisite service periods, which are generally the vesting periods.

Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. Unless a life is specifically stated, we determine the expected life using the “simplified method” in accordance with Staff Accounting Bulletin No. 110 since we do not have sufficient historical share option exercise experience.

Expected Volatility. Using the Black-Scholes option valuation model, we estimate the volatility of our common stock at the date of grant based on the historical volatility of our common stock.

Risk-Free Interest Rate. We base the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award.

Expected Dividend Yield. We have not paid any cash dividends on our common stock in the last ten years and we do not anticipate paying any cash dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero in the Black-Scholes option valuation model.

Expected Forfeitures. We use historical data to estimate pre-vesting option forfeitures. We record stock-based compensation only for those awards that are expected to vest.

The following weighted average assumptions were used for options granted or had options been granted:

	June 29,			June 30,
Fiscal Years Ended	2014			2013

Expected life (in years)		6.0			6.0
Expected volatility		42.8	%		48.9	%
Risk-free interest rate		1.5	%		1.1	%
Expected forfeiture rate		58.2	%		61.8	%

The share based compensation expense is included in general and administrative expense in the statement of operations.

At June 29, 2014, the Company had unvested options to purchase 447,539 shares with a weighted average grant date fair value of $2.00. The total remaining unrecognized compensation cost related to unvested awards amounted to approximately $0.3 million at June 29, 2014. The weighted average remaining requisite service period of the unvested awards was 21.1 months. Stock compensation expense of $0.1 million and $0.2 million was recognized in fiscal years 2014 and 2013, respectively.

Shareholders' Equity

12 Months Ended

Jun. 29, 2014

Shareholders' Equity

Stockholders' Equity

NOTE I - SHAREHOLDERS’ EQUITY:

On April 22, 2009, the board of directors of the Company amended the stock repurchase plan first authorized on May 23, 2007, and previously amended on June 2, 2008, by increasing the aggregate number of shares of common stock the Company may repurchase under the plan to a total of 3,016,000 shares. No shares were repurchased during fiscal 2014 and, as of June 29, 2014, there were 848,425 shares available to repurchase under the plan.

On May 20, 2013, the Company entered into an At-the-Market Issuance Sales Agreement with MLV & Co. LLC (“MLV”) pursuant to which the Company may offer and sell shares of its common stock having an aggregate offering price of up to $3,000,000 from time to time through MLV, acting as agent (the “ATM Offering”). The ATM Offering is being undertaken pursuant to Rule 415 and a universal shelf Registration Statement on Form S-3 which was declared effective by the SEC on May 13, 2013. The Company pays to MLV a fee equal to 3% of the gross sales price in addition to reimbursing certain costs. Through June 29, 2014, the Company had sold an aggregate of 1,060,949 shares of common stock in the ATM Offering, realizing net proceeds of $5.6 million. Expenses associated with the ATM Offering were $43,000 and $52,000 in fiscal 2014 and fiscal 2013, respectively, which includes fees and expense reimbursement to MVL and legal and other offering expenses incurred by the Company.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Commitment and Contingencies

12 Months Ended

Jun. 29, 2014

Commitment and Contingencies

Commitments and Contingencies

NOTE J - COMMITMENTS AND CONTINGENCIES:

The Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company's annual results of operations or financial condition if decided in a manner that is unfavorable to us.

Earnings per Share (EPS)

12 Months Ended

Jun. 29, 2014

Earnings per Share (EPS)

Earnings per Share (EPS)

NOTE K - EARNINGS PER SHARE:

The Company computes and presents earnings per share (“EPS”) in accordance with the authoritative guidance on Earnings Per Share. Basic EPS excludes the effect of potentially dilutive securities while diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised, converted or resulted in the issuance of common stock that then shared in the earnings of the entity.

The following table shows the reconciliation of the numerator and denominator of the basic EPS calculation to the numerator and denominator of the diluted EPS calculation (in thousands, except per share amounts).

	Year Ended
	June 29,			June 30,
	2014			2013
Loss from continuing operations	$	(1,454	)	$	(1,079	)
Discontinued operations		(113	)		(182	)
Net loss available to common stockholders	$	(1,567	)	$	(1,261	)

BASIC:
Weighted average common shares		8,635			8,031

Loss from continuing operations per common share	$	(0.17	)	$	(0.13	)
Discontinued operations per common share		(0.01	)		(0.03	)
Net loss per common share	$	(0.18	)	$	(0.16	)

DILUTED:
Weighted average common shares		8,635			8,031
Stock options		538			279
Weighted average common shares outstanding		9,173			8,310


Loss from continuing operations per common share	$	(0.16	)	$	(0.13	)
Discontinued operations per common share		(0.01	)		(0.02	)
Net loss per common share	$	(0.17	)	$	(0.15	)

At June 29, 2014, options to purchase 75,000 shares of common stock at an exercise price of $5.51 were not included in the computation of diluted EPS because the options’ exercise price was greater than the average market price of the common shares during the year.

Segment Reporting

12 Months Ended

Jun. 29, 2014

Segment Reporting

Segment Reporting

NOTE L– SEGMENT REPORTING:

The Company has two reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information: (1) Franchising and Food and Supply Distribution, and (2) Company-owned Restaurants. These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the two operating segments. Other revenue consists of nonrecurring items.

The Franchising and Food and Supply Distribution segment establishes franchisees and franchise territorial rights and sells and distributes proprietary and non-proprietary food and other items to franchisees. Revenue for this segment is derived from the sale of distributed products and franchise royalties, franchise fees and sale of area development and foreign master license rights. Assets for this segment include equipment, furniture and fixtures.

The Company-owned Restaurant segment includes sales and operating results for all Company-owned restaurants. Assets for this segment include equipment, furniture and fixtures for the Company-owned restaurants.

Corporate administration and other assets primarily include the deferred tax asset, cash and short-term investments, as well as furniture and fixtures located at the corporate office and trademarks and other intangible assets. All assets are located within the United States.

Summarized in the following tables are net sales and operating revenues, depreciation and amortization expense, income from continuing operations before taxes, capital expenditures and assets for the Company's reportable segments as of and for the years ended June 29, 2014 and June 30, 2013 (in thousands):

	Year Ended
	June 29,			June 30,
	2014			2013
Net sales and operating revenues:
Franchising and food and supply distribution	$	32,253		$	33,683
Company-owned restaurants (1)		9,971			7,498
Consolidated revenues	$	42,224		$	41,181

Depreciation and amortization:
Franchising and food and supply distribution	$	19		$	-
Company-owned restaurants (1)		1,244			1,050
Combined		1,263			1,050
Corporate administration and other		191			254
Depreciation and amortization	$	1,454		$	1,304

Loss from continuing operations before taxes
Franchising and food and supply distribution (2)	$	762		$	2,136
Company-owned restaurants (1) (2)		(1,212	)		(1,173	)
Combined		(450	)		963
Impairment of long-lived assets and other lease charges		(253	)		(766	)
Corporate administration and other (2)		(1,511	)		(1,780	)
Loss from continuing operations before taxes	$	(2,214	)	$	(1,583	)

Capital Expenditures:
Franchising and food and supply distribution	$	-		$	-
Company-owned restaurants		1,918			2,110
Corporate administration		150			134
Combined capital expenditures	$	2,068		$	2,244

Assets:
Franchising and food and supply distribution	$	5,231		$	4,909
Company-owned restaurants		4,631			4,696
Corporate administration		6,106			2,930
Combined assets	$	15,968		$	12,535

The following table provides information on our foreign and domestic revenues:

Geographic information (revenues):
United States	$	41,342	$	40,123
Foreign countries		882		1,058
Consolidated total	$	42,224	$	41,181

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 29, 2014

ACCOUNTING POLICIES

Description of Business:

Description of Business:

Principles of Consolidation

Principles of Consolidation:

Reclassifications

Reclassifications:

Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

Cash and Cash Equivalents

Cash and Cash Equivalents:

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Inventories

Inventories:

Closed Restaurants and Discontinued Operations:

Closed Restaurants and Discontinued Operations:

Property, Plant and Equipment

Property, Plant and Equipment:

Impairment of Long-Lived Assets and other Lease charges

Impairment of Long-Lived Asset and other Lease Charges:

Accounts Receivable

Accounts Receivable:

Notes Receivable

Notes Receivable:

The principal balance outstanding on the notes and advances receivable and expected principal collections for the next five years and thereafter were as follows as of June 29, 2014 (in thousands):

	Notes
	Receivable
2015		81
2016		10
2017		8
2018		12
2019 and thereafter		104
	$	215

There were no charge offs for the fiscal year ended June 29, 2014.

Income Taxes

Income Taxes:

Pre-Opening Expense

Pre-Opening Expense:

Revenue Recognition

Revenue Recognition:

Stock Options

Stock Options:

Fair Value of Financial Instruments

Fair Value of Financial Instruments:

Contingencies

Contingencies:

Use of Management Estimates

Use of Management Estimates:

Fiscal years

Fiscal Year:

The Company's fiscal year ends on the last Sunday in June. The fiscal year ended June 29, 2014 and the fiscal year ended June 30, 2013 contained 52 and 53 weeks, respectively.

Receivables, Loans, Notes Receivable, and Others (Table)

12 Months Ended

Jun. 29, 2014

Receivables, Loans, Notes Receivable, and Others:

Schedule of Receivables with Imputed Interest

The principal balance outstanding on the notes and advances receivable and expected principal collections for the next five years and thereafter were as follows as of June 29, 2014 (in thousands):

	Notes
	Receivable
2015		81
2016		10
2017		8
2018		12
2019 and thereafter		104
	$	215

Property, and plant and equipment (Tables)

12 Months Ended

Jun. 29, 2014

Property, and plant and equipment:

Property, and plant and equipment

Property, and plant and equipment consist of the following (in thousands):

	Estimated Useful	June 29,			June 30,
	Lives	2014			2013

Equipment, furniture and fixtures	3 - 7 yrs	$	4,864		$	4,668
Software	5 yrs		424			367
Vehicle	2 - 3 yrs		19			19
Leasehold improvements	10 yrs or lease term, if shorter		4,820			4,611
			10,127			9,665
Less: accumulated depreciation/amortization			(4,994	)		(4,954	)
		$	5,133		$	4,711

Accrued Expenses (Table)

12 Months Ended

Jun. 29, 2014

Payables and Accruals:

Schedule of Accrued Liabilities

Accrued expenses consist of the following (in thousands):

	June 29,		June 30,
	2014		2013
Compensation	$	455	$	388
Other		244		243
Professional fees		132		63
Insurance loss reserves		95		98

	$	926	$	792

Long Term Debt (Table)

12 Months Ended

Jun. 29, 2014

Long Term Debt (Table):

Schedule of Debt

As of June 29, 2014, the outstanding principal balance of the F&M term loan facility was payable as follows (in thousands):

	Bank
	Debt

2015	$	500
2016		267
2017		-
2018		-
2019		-
	$	767

Income Tax (Tables)

12 Months Ended

Jun. 29, 2014

Income Tax:

Provision for income taxes from continuing operations

Provision for income taxes from continuing operations consists of the following (in thousands):

	Year Ended
	June 29,			June 30,
	2014			2013
Current - Federal	$	-		$	-
Current - State		18			33
Deferred - Federal		(722	)		(533	)
Deferred - State		(56	)		(4	)
Provision for income taxes	$	(760	)	$	(504	)

Effective income tax rate reconciliation

The effective income tax rate varied from the statutory rate for the years ended June 29, 2014 and June 30, 2013 as reflected below (in thousands):

	June 29,			June 30,
	2014			2013
Federal income taxes based on 34%
of pre-tax income	$	(763	)	$	(538	)
State income tax, net of federal effect		(52	)		22
Permanent adjustments		8			13
Other		47			(1	)
	$	(760	)	$	(504	)

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the net deferred tax assets consisted of the following (in thousands):

	June 29,		June 30,
	2014		2013


Current
Reserve for bad debt	$	98	$	81
Deferred fees		54		52
Other reserves and accruals		798		749
		950		882
Non Current
Credit carryforwards		24		129
Net operating loss carryforwards		181		300
Depreciable assets		734		(261	)

Total gross deferred tax asset		1,889		1,050

Valuation allowance		-		-

Net deferred tax asset	$	1,889	$	1,050

Lease (Tables)

12 Months Ended

Jun. 29, 2014

Lease:

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum rental payments under non-cancelable leases, net of subleases, with initial or remaining terms of one year or more at June 29, 2014 were as follows (in thousands):

	Operating
	Leases

2015	$	1,669
2016		1,609
2017		1,228
2018		849
2019		799
Thereafter		2,144
	$	8,298

Schedule of Rent Expense

Rental expense consisted of the following (in thousands):

	Year Ended
	June 29,			June 30,
	2014			2013

Minimum rentals	$	1,448		$	1,322
Sublease rentals		(182	)		(182	)
	$	1,266		$	1,140

Stock Option Activity (Tables)

12 Months Ended

Jun. 29, 2014

Stock Option Activity

Stock Option Activity

A summary of stock option transactions under all of the Company’s stock option plans and information about fixed-price stock options is as follows:

	Year Ended
	June 29, 2014					June 30, 2013
				Weighted-					Weighted-
				Average					Average
				Exercise					Exercise
	Shares			Price		Shares			Price

Outstanding at beginning
of year		851,306		$	2.54		486,506		$	2.80

Granted		147,892		$	4.92		464,800		$	2.70
Exercised		(39,144	)	$	2.12		-
Forfeited/Canceled/Expired		(38,856	)	$	3.15		(100,000	)	$	4.72

Outstanding at end of year		921,198		$	2.92		851,306		$	2.54

Exercisable at end of year		473,659		$	2.43		459,439		$	2.42

Weighted-average fair value of
options granted during the year				$	3.64				$	1.29

Total intrinsic value of
options exercised				$	82,845				$	-

Options Exercisable (Table)

12 Months Ended

Jun. 29, 2014

Other Liabilities:

Schedule of Options Indexed to Issuer's Equity

The following table provides information on options outstanding and options exercisable as of June 29, 2014:

	Options Outstanding			Options Exercisable
		Weighted-
		Average
	Options	Remaining	Weighted-	Options	Weighted-
Range of	Outstanding	Contractual	Average	Exercisable	Average
Exercise Prices	at June 29, 2014	Life (Years)	Exercise Price	at June 29, 2014	Exercise Price

$1.55 - 1.95	136,506	5.2	$1.90	136,506	$1.90
$1.96 - 2.35	130,000	4.0	$2.32	130,000	$2.32
$2.36 - 2.75	412,000	8.2	$2.57	88,000	$2.65
$2.76 - 3.30	115,000	6.4	$3.13	115,000	$3.13
$3.31 - 3.81	41,528	8.5	$3.81	4,153	$0.00
$5.51 - 5.74	8,664	0.7	$5.74	-	$0.00
$5.95 - 6.05	62,500	9.8	$6.02	-	$0.00
$8.16	15,000	9.4	$8.16	-	$0.00
	921,198	7.0	$2.92	473,659	$2.43

- Definition

Tabular disclosure of the freestanding option contracts issued by an entity that are indexed to, and potentially settled in, an entity's own stock. Includes disclosure on the strike price and the number of shares to which the contract is indexed, the settlement date or dates of the contract, and the issuer's accounting for the contract. If the terms of the contract provide settlement alternatives, those settlement alternatives are disclosed, including who controls the settlement alternatives, and the maximum number of shares that could be required to be issued, to net share settle the contract, if applicable. If a contract does not have a fixed or determinable maximum number of shares that could be required to be issued, the fact that a potentially infinite number of shares that may be required to be issued to settle the contract is disclosed. Disclosure also includes the contract's current fair value for each settlement alternative and how changes in the price of the issuer's equity instruments affect those settlement amounts.

+ References + Details

Weighted Average Assumptions (Table)

12 Months Ended

Jun. 29, 2014

Schedule of Assumptions Used

The following weighted average assumptions were used for options granted or had options been granted:

	June 29,			June 30,
Fiscal Years Ended	2014			2013

Expected life (in years)		6.0			6.0
Expected volatility		42.8	%		48.9	%
Risk-free interest rate		1.5	%		1.1	%
Expected forfeiture rate		58.2	%		61.8	%

Earnings Per Share (Table)

12 Months Ended

Jun. 29, 2014

Earnings Per Share:

Schedule of Earnings Per Share, Basic and Diluted

	Year Ended
	June 29,			June 30,
	2014			2013
Loss from continuing operations	$	(1,454	)	$	(1,079	)
Discontinued operations		(113	)		(182	)
Net loss available to common stockholders	$	(1,567	)	$	(1,261	)

BASIC:
Weighted average common shares		8,635			8,031

Loss from continuing operations per common share	$	(0.17	)	$	(0.13	)
Discontinued operations per common share		(0.01	)		(0.03	)
Net loss per common share	$	(0.18	)	$	(0.16	)

DILUTED:
Weighted average common shares		8,635			8,031
Stock options		538			279
Weighted average common shares outstanding		9,173			8,310


Loss from continuing operations per common share	$	(0.16	)	$	(0.13	)
Discontinued operations per common share		(0.01	)		(0.02	)
Net loss per common share	$	(0.17	)	$	(0.15	)

Segment Reporting Information (Tables)

12 Months Ended

Jun. 29, 2014

Segment Reporting Information

Segment Reporting Information

Company's reportable segments as of and for the years ended June 29, 2014 and June 30, 2013 (in thousands):

	Year Ended
	June 29,			June 30,
	2014			2013
Net sales and operating revenues:
Franchising and food and supply distribution	$	32,253		$	33,683
Company-owned restaurants (1)		9,971			7,498
Consolidated revenues	$	42,224		$	41,181

Depreciation and amortization:
Franchising and food and supply distribution	$	19		$	-
Company-owned restaurants (1)		1,244			1,050
Combined		1,263			1,050
Corporate administration and other		191			254
Depreciation and amortization	$	1,454		$	1,304

Loss from continuing operations before taxes
Franchising and food and supply distribution (2)	$	762		$	2,136
Company-owned restaurants (1) (2)		(1,212	)		(1,173	)
Combined		(450	)		963
Impairment of long-lived assets and other lease charges		(253	)		(766	)
Corporate administration and other (2)		(1,511	)		(1,780	)
Loss from continuing operations before taxes	$	(2,214	)	$	(1,583	)

Capital Expenditures:
Franchising and food and supply distribution	$	-		$	-
Company-owned restaurants		1,918			2,110
Corporate administration		150			134
Combined capital expenditures	$	2,068		$	2,244

Assets:
Franchising and food and supply distribution	$	5,231		$	4,909
Company-owned restaurants		4,631			4,696
Corporate administration		6,106			2,930
Combined assets	$	15,968		$	12,535

Schedule of Revenue from External Customers by Geographical Areas

The following table provides information on our foreign and domestic revenues:

Geographic information (revenues):
United States	$	41,342	$	40,123
Foreign countries		882		1,058
Consolidated total	$	42,224	$	41,181

Notes Receivables (Details)	Jun. 29, 2014 USD ($)
Accounts Receivalble details
Finance charges may be accrued at a rate per year	18.00%
Notes Receivables details
Notes receivable bear interest rate minimum	7.00%
Notes receivable bear interest rate maximum	15.00%
Total notes receivables	$ 215,000
Current notes receivables	81,000
Long term notes receivables	$ 134,000

Expected principal collections for the next five years and thereafter (Details) $ in Thousands	Jun. 29, 2014 USD ($)
Expected principal collections for the next five years and thereafter
Notes Recevables 2015	$ 81
Notes Recevables 2016	10
Notes Recevables 2017	8
Notes Recevables 2018	12
Notes Recevables 2019 and there after	104
Total Notes Receivables	$ 215

Property, and plant and equipment consist of the following (Details) - USD ($) $ in Thousands	Jun. 29, 2014	Jun. 30, 2013
Property, and plant and equipment consist of the following
Equipment, furniture and fixtures with estimated life of 3 to 7 years	$ 4,864	$ 4,668
Software with estimated life of 5 years	424	367
Vehicle with estimated life of 2 to 3 years	19	19
Leasehold improvements with estimated life of 10 yrs or lease term, if shorter	4,820	4,611
Gross Total of Property, and plant and equipment	10,127	9,665
Less: accumulated depreciation/amortization	(4,994)	(4,954)
Net Total of Property, and plant and equipment	$ 5,133	$ 4,711

Depreciation and amortization expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
Depreciation and amortization expense Details
Depreciation and amortization expense	$ 1,500	$ 1,300

Accrued expenses consist of the following (details) - USD ($) $ in Thousands	Jun. 29, 2014	Jun. 30, 2013
Accrued expenses consist of the following
Compensation accrued	$ 455	$ 388
Other	244	243
Professional fees accrued	132	63
Insurance loss reserves	95	98
Total accrued expense	$ 926	$ 792

Loan and Security Agreement with F & M Bank & Trust Company (details) - USD ($) $ in Thousands	Aug. 28, 2014	Jun. 29, 2014	Aug. 28, 2012
Loan and Security Agreement with F & M Bank & Trust Company:
Revolving credit facility provided			$ 2,000
Fully Funded Term loan facility			2,000
Advancing term loan facility	$ 6,000		$ 6,000
Unused commitment fee per annum is payable quarterly			0.50%
F & M funded term loan payable			$ 2,000
Term loan payable in equal monthly installments			48
Accrued interest at a fixed rate		4.57%	4.57%
Term loan facility balance		$ 800

Outstanding principal balance of the F&M term loan facility was payable as follows (Details) (Bank Debt) $ in Thousands	Jun. 29, 2014 USD ($)
Outstanding principal balance of the F&M term loan facility was payable as follows
Outstanding principal balance payable in 2015	$ 500
Outstanding principal balance payable in 2016	267
Outstanding principal balance payable in 2017	0
Outstanding principal balance payable in 2018	0
Outstanding principal balance payable in 2019	0
Total Outstanding principal balance payable,	$ 767

Provision for income taxes from continuing operations consists of the following (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
Provision for income taxes from continuing operations consists of the following
Current - Federal	$ 0	$ 0
Current - State	18	33
Deferred - Federal	(722)	(533)
Deferred - State	(56)	(4)
Provision for income taxes	(760)	(504)
Tax benefit Included in loss from discontinued operations	$ 59,000	$ 94,000

Effective income tax rate varied from the statutory rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
Effective income tax rate varied from the statutory rate
Federal income taxes based on 34% of pre-tax income	$ (763)	$ (538)
State income tax, net of federal effect	(52)	22
Permanent adjustments	8	13
Other adjustments	47	(1)
Total tax net	$ (760)	$ (504)

Tax effects of temporary differences that give rise to the net deferred tax assets consisted of the following (Details) - USD ($) $ in Thousands	Jun. 29, 2014	Jun. 30, 2013
Current
Reserve for bad debt	$ 98	$ 81
Deferred fees	54	52
Other reserves and accruals	798	749
Total gross current deferred tax asset	950	882
Non Current
Credit carryforwards,	24	129
Net operating loss carryforwards,	181	300
Depreciable assets	734	(261)
Total gross deferred tax asset	1,889	1,050
Valuation allowance	0	0
Net deferred tax asset	$ 1,889	$ 1,050

Future minimum rental payments under non-cancelable leases (Details) (Operating Leases) $ in Thousands	Jun. 29, 2014 USD ($)
Future minimum rental payments under non-cancelable leases
Future minimum rental payments under non-cancelable leases in 2015	$ 1,669
Future minimum rental payments under non-cancelable leases in 2016	1,609
Future minimum rental payments under non-cancelable leases in 2017	1,228
Future minimum rental payments under non-cancelable leases in 2018	849
Future minimum rental payments under non-cancelable leases in 2019	799
Future minimum rental payments under non-cancelable leases Thereafter	2,144
Future minimum rental payments under non-cancelable leases,	$ 8,298

Rental expense consisted of the following (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
Rental expense consisted of the following
Minimum rentals	$ 1,448	$ 1,322
Sublease rentals	(182)	(182)
Total rental expense	$ 1,266	$ 1,140

Employee Benefits (Details) - USD ($)	12 Months Ended
Employee Benefits (Details) - USD ($)	Jun. 29, 2014	Jun. 30, 2013
EMPLOYEE BENEFITS Details
Contributions to the tax advantaged savings plan	$ 12,400	$ 33,500
Company contributes on behalf of each participating employee an amount equal to the percentage contributed by employees	50.00%
Maximum percentage of contribution by the employer as compensation	4.00%

Common stock to outstanding stock options (Details) {Stockholders equity} - shares	12 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
Shares
Outstanding at beginning of year		486,506
Granted		464,800
Exercised		0
Forfeited/Canceled/Expired-shares		(100,000)
Outstanding at end of year		851,306
Exercisable at end of period		459,439
Outstanding at beginning of year,	851,306
Granted,	147,892
Exercised,	(39,144)
Forfeited/Canceled/Expired-shares,	(38,856)
Outstanding at end of year,	921,198
Exercisable at end of period,	473,659
Weighted-Average Exercise Price
Outstanding at beginning of year		2.80
Granted		2.70
Exercised		0
Forfeited/Canceled/Expired-shares		4.72
Outstanding at end of year		2.54
Exercisable at end of period		2.42
Outstanding at beginning of year,	2.54
Granted,	4.92
Exercised,	2.12
Forfeited/Canceled/Expired-shares,	3.15
Outstanding at end of year,	2.92
Exercisable at end of period,	2.43

Total intrinsic value of options (Details)	Jun. 29, 2014 USD ($) $ / shares	Jun. 30, 2013 $ / shares
Total intrinsic value of options
Weighted-average fair value of options granted during the year \| $ / shares	$ 3.64	$ 1.29
Total intrinsic value of options exercised \| $	$ 82,845
Total intrinsic value of options outstanding	3,100,000
Total intrinsic value of options exercisable	1,200,000

Options outstanding and options exercisable (Details) {stockholders equity}	12 Months Ended
	Jun. 29, 2014 shares
Shares Outstanding at June 29, 2014
Total Options outstanding and options exercisable	0
Range of Exercise Prices 1.55 - 1.95	136,506
Range of Exercise Prices 1.96 - 2.35	130,000
Range of Exercise Prices 2.36 - 2.75	412,000
Range of Exercise Prices 2.76 - 3.30	115,000
Range of Exercise Prices 3.31 - 3.81	41,528
Range of Exercise Prices 5.51 - 5.74	8,664
Range of Exercise Prices 5.95 - 6.05	62,500
Range of Exercise Prices 8.16	15,000
Total Options outstanding and options exercisable,	921,198
Weighted-Average Remaining Contractual Life (Years)
Range of Exercise Prices 1.55 - 1.95	5.2
Range of Exercise Prices 1.96 - 2.35	4.0
Range of Exercise Prices 2.36 - 2.75	8.2
Range of Exercise Prices 2.76 - 3.30	6.4
Range of Exercise Prices 3.31 - 3.81	8.5
Range of Exercise Prices 5.51 - 5.74	0.7
Range of Exercise Prices 5.95 - 6.05	9.8
Range of Exercise Prices 8.16	9.4
Total Options outstanding and options exercisable,	7.0
Options Outstanding Weighted-Average Exercise Price
Range of Exercise Prices 1.55 - 1.95	1.90
Range of Exercise Prices 1.96 - 2.35	2.32
Range of Exercise Prices 2.36 - 2.75	2.57
Range of Exercise Prices 2.76 - 3.30	3.13
Range of Exercise Prices 3.31 - 3.81	3.81
Range of Exercise Prices 5.51 - 5.74	5.74
Range of Exercise Prices 5.95 - 6.05	6.02
Range of Exercise Prices 8.16	8.16
Total Options outstanding and options exercisable,	2.92
Shares Exercisable at June 29, 2014
Range of Exercise Prices 1.55 - 1.95	136,506
Range of Exercise Prices 1.96 - 2.35	130,000
Range of Exercise Prices 2.36 - 2.75	88,000
Range of Exercise Prices 2.76 - 3.30	115,000
Range of Exercise Prices 3.31 - 3.81	4,153
Total Options outstanding and options exercisable,	473,659
Options Exercisable Weighted-Average Exercise Price
Range of Exercise Prices 1.55 - 1.95	1.90
Range of Exercise Prices 1.96 - 2.35	2.32
Range of Exercise Prices 2.36 - 2.75	2.65
Range of Exercise Prices 2.76 - 3.30	3.13
Range of Exercise Prices 3.31 - 3.81	0.00
Range of Exercise Prices 5.51 - 5.74	0.00
Range of Exercise Prices 5.95 - 6.05	0.00
Range of Exercise Prices 8.16	0.00
Total Options outstanding and options exercisable,	2.43

Weighted average assumptions (Details)	12 Months Ended
Weighted average assumptions (Details)	Jun. 29, 2014	Jun. 30, 2013
Weighted average assumptions
Expected life (in years)	6.0	6.0
Expected volatility	42.80%	48.90%
Risk-free interest rate	1.50%	1.10%
Expected forfeiture rate	58.20%	61.80%

Stock-Based Compensation (details) In Millions - USD ($)	12 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
Stock-Based Compensation During The Period:
Recognized stock-based compensation expense	$ 0.1	$ 0.2

Stock Options (Details)	Jun. 29, 2014 $ / shares shares
Stock Options Details
Total shares of common stock are authorized for issuance under the 2005 Employee Plan	1,000,000
Options to purchase Shares granted under the Employee plan.	139,228
Shares available to be granted under the Employee plan.	471,828
Total shares of common stock are authorized for issuance under the 2005 Directors Plan	650,000
Options to purchase Shares granted under the Directors plan.	8,664
Shares available to be granted under the Directors plan.	207,830
Company had unvested options to purchase shares	447,539
Weighted average grant date fair value per share \| $ / shares	$ 2.00
Weighted average remaining requisite service period of the unvested awards in months	21.1

Stock repurchase plan (Details) - shares	Jun. 30, 2013	Apr. 22, 2009
Stock repurchase plan
Aggregate number of shares of common stock the Company may repurchase under the plan		3,016,000
Shares available to repurchase under the plan.	848,425

Sales Agreement with MLV & Co. LLC (Details) - USD ($)	Jun. 29, 2014	May 20, 2013
Sales Agreement with MLV & Co. LLC
Company may offer and sell shares of its common stock having an aggregate offering price		$ 3,000,000
The Company pays to MLV a fee equal to the gross sales price		3.00%
Company had sold an aggregate of shares of common stock in the ATM offering	1,060,949
Realizing net proceeds in the ATM offering	$ 5,600,000

ATM offering Expenses (Details) - USD ($)	12 Months Ended
ATM offering Expenses (Details) - USD ($)	Jun. 29, 2014	Jun. 30, 2013
ATM offering Expenses Details
Expenses associated with the ATM offering were	$ 43,000	$ 52,000

Earnings per Share (EPS) Consists of the Following (Details) - USD ($)	12 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
Earnings per Share (EPS) Consists of the Following
Loss from continuing operations	$ (1,454)	$ (1,079)
Loss from Discontinued operations	(113)	(182)
Net loss available to common stockholders	$ (1,567)	$ (1,261)
BASIC:
Weighted average common shares basic	8,635	8,031
Loss from continuing operations per share basic	$ (0.17)	$ (0.13)
Discontinued operations per common share basic	(0.01)	(0.03)
Net loss per common share basic	$ (0.18)	$ (0.16)
DILUTED:
Weighted average common shares diluted	8,635	8,031
Stock options diluted	538	279
Weighted average common shares outstanding diluted	9,173	8,310
Loss from continuing operations per share diluted	$ (0.16)	$ (0.13)
Discontinued operations per common share diluted	(0.01)	(0.02)
Net loss per common share diluted	$ (0.17)	$ (0.15)

Shares not included in the computation of diluted EPS (Details)	Jun. 29, 2014 $ / shares shares
Shares not included in the computation of diluted EPS
No of Shares not included in the computation of diluted EPS \| shares	75,000
Exercise price of Shares not included in the computation of diluted EPS \| $ / shares	$ 5.51

Segment Reporting Operating Income and Geographic Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 29, 2014	Jun. 30, 2013
Net sales and operating revenues:
Franchising and food and supply distribution Net sales and operating revenues	$ 32,253	$ 33,683
Company-owned restaurants Net sales and operating revenues (1).	9,971	7,498
Consolidated revenues.	42,224	41,181
Depreciation and amortization:
Franchising and food and supply distribution Depreciation and amortization	19	0
Company-owned restaurants Depreciation and amortization (1)	1,244	1,050
Combined Depreciation and amortization	1,263	1,050
Corporate administration and other	191	254
Depreciation and amortization total	1,454	1,304
Loss from continuing operations before taxes
Franchising and food and supply distribution (2)	762	2,136
Company-owned restaurants (1) (2)	(1,212)	(1,173)
Combined Loss from continuing operations before taxes	(450)	963
Impairment of long-lived assets and other lease charges,	(253)	(766)
Corporate administration and other (2)	(1,511)	(1,780)
Segment Loss from continuing operations before taxes,	(2,214)	(1,583)
Capital Expenditures:
Franchising and food and supply distribution Capital Expenditures	0	0
Company-owned restaurants Capital Expenditures	1,918	2,110
Corporate administration Capital Expenditures	150	134
Combined capital expenditures	2,068	2,244
Assets segments:
Franchising and food and supply distribution Assets	5,231	4,909
Company-owned restaurants Assets	4,631	4,696
Corporate administration Assets	6,106	2,930
Combined assets	15,968	12,535
Geographic information (revenues):
United States	41,342	40,123
Foreign countries	882	1,058
Consolidated total	$ 42,224	$ 41,181