NROM — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-12

• (1) With the sale of multiple traditional stand-alone franchises to a single franchisee, the franchise fee for the first unit is $30,000, the franchise fee for the second unit is $25,000 and the franchise fee for the third unit and any additional unit is $20,000 each.

• The franchise fees are paid upon signing the franchise agreement and recorded in deferred income which is recognized as revenue income over the life of the contract from the time the location opens for business and, when paid, are non-refundable in consideration of the administration and other expen…

• The revenue from this venue decreased from $2.32 million to $2.21 million, or 4.8%, and from $4.34 million to $4.31million, or .8%, for the respective three-month and six-month periods ended June 30, 2026, compared to the corresponding periods in 2025. Sales for both periods were negatively affected…

• Cost of sales as a percentage of revenue from this venue remained constant for the three-month period ended June 30, 2026 and 2025, and for the six-month period ended June 30, 2026 decreased from 20.6% and 20.0% compared to the six-month period ended June 30, 2025. The Company has experienced some s…

• Salaries and wages as a percentage of revenue increased to 27.4% from 26.9% for the three-month period ended June 30, 2026, compared to the comparable period in 2025, and decreased to 27.6% from 28.2% for the six-month period ended June 30, 2026, compared to the comparable period in 2025. The cost o…

Text removed vs the prior filing · source: 10-Q · 2026-06-29

• The franchise fees are paid upon signing the franchise agreement and recorded in deferred income which begins amortizing into income over the life of the contract from the time the location opens for business and, when paid, are non-refundable in consideration of the administration and other expense…

• The revenue from this venue was $2,094,417 for the three months ended March 31, 2026 compared to $2,019,418 for the corresponding period in 2025. The same stores sales increase of approximately 3.7% during this period is a very rewarding growth rate considering high gas prices, the uncertainty in th…

• Cost of sales decreased to 19.4% for the three months ended March 31, 2026 from 20.6% for the corresponding period last year. This decrease was because the Company maintained excellent controls over portioning and actively managed sales mix with dual promotions featuring both value and premium-price…

• Salaries and wages decreased to 27.8% for the three months ended March 31, 2026 from 29.7% for the comparable period in 2025. This was the result of more efficient use of labor due to increased average tenure and experience of the Company’s workforce and the Company’s general focus on efficiency man…

• Gross margin contribution as a result of what was discussed in the previous paragraphs, increased to 7.5% for the three months ended March 31, 2026 from 6.4% for the comparable period last year. This was accomplished despite the inflationary pressures on most all expenses as well as the Company’s va…

Text added vs the prior filing · source: 10-Q · 2026-08-12

• Management, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company's disclosure controls and procedures as of June 30, 2026. Based on that evaluation, management concluded that the Company's disclosure controls and proc…

• The previously identified material weakness relates primarily to deficiencies in the Company's financial reporting and period-end close process, including the timely preparation, reconciliation, documentation and review of certain account balances and financial reporting matters.Management continued…

• Except for the remediation activities described above, there were no changes in the Company's internal control over financial reporting during the quarter ended June 30, 2026 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial report…

Text removed vs the prior filing · source: 10-Q · 2026-06-29

• In connection with the preparation of this quarterly report, management, under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rules 13…

• Management’s Report on Internal Control Over Financial Reporting

• The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Company carried out an evaluation under the supervision and with the participation of the Company’s management, inc…

• The alleged weakness in controls consisted of the Company’s financial close process that allegedly did not include adequate controls to ensure timely and accurate reconciliation of certain account balances in the reconciliation process. In addition, the Company found that it lacked sufficient writte…

• Except for ongoing remediation activities described above, there have been no changes in internal controls over financial reporting during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.