10-Q - NOBLE ROMANS INC (0000709005) (Filer)

Wed, Jun 12, 8:04 PM (39 days ago)

Noble Roman’s, Inc. reported its financial results for the quarter ended March 31, 2024. Key highlights include: 1. **Revenue**: Total revenue increased to $3.67 million, up from $3.31 million in the same period in 2023. 2. **Profitability**: The company reported a net loss of $86,477, compared to a net income of $868,270 in Q1 2023. This decline is partly due to the non-recurring Employee Retention Tax Credit (ERTC) received in Q1 2023. 3. **Operating Expenses**: Operating expenses rose significantly to $2.55 million from $1.17 million, driven by increased franchising expenses and general administrative costs. 4. **Cash Flow**: Net cash provided by operating activities was $561,575, a significant improvement from the negative cash flow of $192,237 in Q1 2023. 5. **Liabilities**: The company’s current liabilities surged to $10.18 million from $3.62 million, primarily due to the Corbel loan payable. 6. **Debt Refinancing**: Noble Roman’s is pursuing refinancing options to repay the Corbel loan and subordinated notes before their maturity in 2025. 7. **Future Outlook**: The company anticipates continued growth in non-traditional franchises and is focused on managing overhead expenses while expanding its revenue base. Overall, while revenue growth is positive, the company faces challenges with profitability and increased liabilities. Future refinancing efforts will be critical for financial stability.