Annual report pursuant to Section 13 and 15(d)

Long-Term Debt and Notes Payable - Summary of Long-Term Debt and Notes Payable (Details)

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Long-Term Debt and Notes Payable - Summary of Long-Term Debt and Notes Payable (Details) - USD ($)
Dec. 31, 2015
Dec. 31, 2014
Short-term Debt [Line Items]    
Total Long-term Debt $ 6,481,643 $ 6,822,930
Current portion of long-term debt 5,383,002 1,813,647
Long-term debt, less current portion 1,098,641 5,009,283
Note Payable, due January 2017, net of discount of $171,868 and $343,733, respectively [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [1] $ 4,828,132 4,656,267
Note Payable, due June 2019 [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [2] $ 500,000
Note Payable, due January 2017 [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [3] $ 942,918
Note Payable, due October 2018 [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [4] 132,596 $ 176,731
Mortgage Note, South Africa, due July 2024 [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [5] 208,131 294,362
Bank overdraft facilities, South Africa, annual renewal [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [6] 180,377 151,868
Equipment financing arrangements, South Africa [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [7] $ 189,489 343,702
Bank line of Credit, expired in 2015 [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [3] 500,000
Loans, paid in full in 2015 [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [8] $ 200,000
[1] On July 1, 2014, the Company completed the acquisition of a sixty percent (60%) ownership interest in Hoot Parramatta Pty Ltd, Hoot Australia Pty Ltd, Hoot Penrith Pty Ltd, and TMIX Management Australia Pty Ltd (collectively, the “Australian Entities”) in exchange for the assumption of a five million dollar ($5,000,000) note bearing interest at 12% annually and issuing two hundred fifty thousand (250,000) warrants to purchase shares of our common stock.
[2] During February 2014, the Company entered into a $500,000 note with Paragon Commercial Bank (“Paragon”) due June 10, 2019. The note bears interest at a 5.0% annual rate, with principal and interest payable monthly. This note was paid in full in 2015 using proceeds from a new note with Paragon (refer to item (c) below).
[3] On April 11, 2013, the Company and entered into a credit agreement with Paragon which provided for a $500,000 revolving credit facility. The original credit agreement (h) expired on May 10, 2015 and was subsequently converted to a new$1 million term note (c) payable in monthly installments of $8,500 with a $399,078 balloon payment due at maturity, bearing interest at 5.0%; collateralized by substantially all of the Company’s assets and guaranteed by an officer of the Company.
[4] Note with Paragon, due on October 10, 2018, bearing interest at a 5% annual rate, with principal and interest monthly payments of $11,532. Borrowings under the Note Payable are secured by a lien on all of the Company’s assets. Obligations under the Credit Agreement are guaranteed by an officer of the Company.
[5] In April 2014, our South African subsidiary entered into a mortgage note with a South African bank for the purchase of the building in Port Elizabeth for our Hooters location. The 10-year note is for $330,220 with an annual interest rate of 2.6% above the South African prime rate (prime currently 9.25%). Monthly principal and interest payments of approximately $4,600 commenced in August, 2014. The mortgage note is personally guaranteed by our CEO and South African COO and secured by the assets of the Port Elizabeth building.
[6] The Company’s South African subsidiary has local bank financing in the form of term and overdraft facilities, which are payable on demand and renew annually.
[7] The Company’s South African subsidiary has three local equipment financing arrangements in the form of term loans. These arrangements call for 1) monthly payments of 45 thousand Rand, including interest at South African Prime +1.0%, maturing on June 14, 2016, 2) monthly payments of 44 thousand Rand, including interest South African Prime +3.0%, maturing on November 15, 2019 and 3) monthly payments of 34 thousand Rand, including interest at South African Prime + 3.0% maturing on December 1, 2018.
[8] On December 23, 2013, the Company entered into a loan agreement with an outside company for $150,000. During 2014, made payments totaling $50,000 and repaid the loan in full during 2015. On June 20, 2014, the Company entered into a loan agreement with an outside company for $100,000. During 2015, the Company issued 100,000 shares of its common stock to repay the loan, accrued interest and penalties in full. The Company recognized a loss on extinguishment of debt of $45,000 representing the difference between the fair value of the shares issued and the carrying value of the outstanding debt and accrued interest.