WHAT A PLACE! Most underground venue I went to in Chattanooga and it was the coolest place we went. We missed it by driving by it about three times but we finally found the facade by walking by it.
We were there for the open mic comedy, which as far as open mics go, was one of the best I've ever been to! The newer comedians were really original and comfortable onstage and avoided the hacky "airline food" sets. Even the crowd was one of the best I've seen. Good sports, no heckling, and a nice attitude. Definitely a great night of comedy.
Limited seating, so there's that, but I think it only adds to the whole bohemian/hip atmosphere. Can't say much about the bar because I was pretty broke by the time we went there and could only afford a Bud Light (yech!). There's a nice patio area in the back complete with a Doctor Who reference graffitied on the deck (see if you can find it).
If you want comedy that's free AND original, go here. It's worth more than the cost of admission.