NOTE 1  BUSINESS ORGANIZATION AND NATURE OF OPERATIONS, GOING CONCERN AND MANAGEMENTS PLANS Muscle Maker, Inc. (MMI), a Nevada corporation was incorporated in Nevada on October 25, 2019. MMI was a wholly owned subsidiary of Muscle Maker, Inc (MMI-Cal), a California corporation incorporated on December 8, 2014, but the two merged on November 13, 2019 with MMI as the surviving entity. MMI wholly owns Muscle Maker Development, LLC (MMD), Muscle Maker Corp, LLC (MMC) and Muscle Maker USA, Inc (Muscle USA). MMD was formed on July 18, 2017, in the State of Nevada for the purpose of running our existing franchise operations and continuing to franchise the Muscle Maker Grill name and business system to qualified franchisees. MMC was formed on July 18, 2017, in the State of Nevada for the purpose of developing new corporate stores and operating new and existing corporate stores of MMI. Muscle USA was formed on March 14, 2019 in the State of Texas for the purpose of opening additional new corporate stores. MMI is a fast-casual restaurant concept that specializes in preparing healthy-inspired, high-quality, fresh, made-to-order lean, protein-based meals featuring chicken, seafood, pasta, hamburgers, wraps and flat breads. In addition, our restaurants feature freshly prepared entree salads and an appealing selection of sides, protein shakes and fruit smoothies. MMI operates in the fast-casual restaurant segment. MMI is the owner of the trade name and service mark Muscle Maker Grill, Healthy Joes and other trademarks and intellectual property we use in connection with the operation of Muscle Maker Grill restaurants. We license the right to use the Muscle Maker Grill and Healthy Joes trademarks and intellectual property to our wholly-owned subsidiaries, MMD, MMC and Muscle USA, and to further sublicense them to our franchisees for use in connection with Muscle Maker Grill and Healthy Joes restaurants. MMI and its subsidiaries are hereinafter referred to as the Company. The Company operates under the name Muscle Maker Grill and is a franchisor and owner operator of Muscle Maker Grill and Healthy Joes restaurants. As of March 31, 2020, the Companys restaurant system included eleven company-owned restaurants, and twenty-four franchise restaurants. A Muscle Maker Grill restaurant offers quality food freshly prepared with the Companys proprietary recipes created with the guests health in mind. The menu is protein based, and features various supplements, health food snacks, along with a nutritious childrens menu. COVID-19 In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic which continues to spread throughout the United States. In response to the COVID-19 outbreak, shelter in place orders and other public health measures have been implemented across much of the United States. The COVID-19 global pandemic continues to rapidly evolve. The Company is continually monitoring the outbreak of COVID-19 and the related business and travel restrictions and changes to behavior intended to reduce its spread, and its impact on operations, financial position, cash flows, inventory, supply chains, purchasing trends, customer payments, and the industry in general, in addition to the impact on its employees. The pandemic has resulted in a negative impact on the Companys operations during the quarter ended March 31, 2020. However, due to the rapid development and fluidity of this situation, the magnitude and duration of the pandemic and its impact on the Companys operations and liquidity is uncertain as of the date of this report. While there could ultimately be an additional material impact on operations and liquidity of the Company, the full impact could not be determined, as of the date of this report. As a result of the pandemic the Company has limited its operations as mandated by each state and has temporarily closed five of our Company owned locations. Commencing in the second quarter of 2020 the Company provided royalty relief to its franchisees and the executive team has deferred a portion of their salaries. In addition, various franchisee locations had to take similar actions. As of the date of the filing of this report the Company has not re-opened any of the five locations that have been temporarily closed. Going Concern and Managements Plans As of March 31, 2020, the Company had a cash balance, a working capital surplus and an accumulated deficit of $3,707,364, $874,473, and $58,586,865, respectively. During the three months ended March 31, 2020, the Company incurred a pre-tax net loss of $5,492,263. These conditions indicate that there is substantial doubt about the Companys ability to continue as a going concern for at least one year from the date of the issuance of these condensed consolidated financial statements. Subsequent to March 31, 2020, the Company received an amount of $866,300 in loan proceeds pursuant to the Paycheck Protection Program. See Note 13  Subsequent Events  Cares Act Loan for details related to the loan proceeds. Although management believes that the Company has access to capital resources, there are no commitments, other than aforementioned, in place for new financing as of the date of the issuance of these condensed consolidated financial statements and there can be no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. The Company expects to have ongoing needs for working capital in order to (a) fund operations; plus (b) expand operations by opening additional corporate-owned restaurants. To that end, the Company may be required to raise additional funds through equity or debt financing. However, there can be no assurance that the Company will be successful in securing additional capital. If the Company is unsuccessful, the Company may need to (a) initiate cost reductions; (b) forego business development opportunities; (c) seek extensions of time to fund its liabilities, or (d) seek protection from creditors. The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), which contemplate continuation of the Company as a going concern and the realization of assets and the satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the condensed consolidated financial statements do not necessarily purport to represent realizable or settlement values. The condensed consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.