Quarterly report pursuant to Section 13 or 15(d)

Convertible Notes Payable

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Convertible Notes Payable
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Convertible Notes Payable

8. cONVERTIBLE NOTEs PAYABLE

 

Convertible Notes payable are summarized as follows:

 

    September 30, 2019     December 31, 2018  
6% Convertible notes payable due June 2018 (a)   $       -     $ 3,000,000  
Total Convertible notes payable     -       3,000,000  
Current portion of convertible notes payable     -       3,000,000  
Convertible notes payable, less current portion   $ -     $ -  

 

(a) On August 2, 2013, the Company entered into an agreement with seven individual accredited investors, whereby the Company issued separate 6% Secured Subordinate Convertible Notes for a total of $3,000,000 in a private offering and is collateralized by the assets of the Hooters Nottingham restaurant and a subordinate position to all other assets of the Company. In connection with the Company’s agreement to conduct a capital raise in 2016, the lenders agreed to waive existing defaults and extended the original note maturity by eighteen months from December 31, 2016 to June 30, 2018. Effective June 28, 2019, the noteholders converted the outstanding notes into subscription rights as part of the Company’s rights offering which expired on June 28, 2019 and closed on July 2, 2019. See additional discussion on the rights offering in Note 10.