Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt and Notes Payable

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Long-Term Debt and Notes Payable
 9 Months Ended
Sep. 30, 2016
Debt Disclosure [Abstract]  
Long-Term Debt and Notes Payable

7. LONG-TERM DEBT AND NOTES PAYABLE

 

Long-term debt and notes payable are summarized as follows.

 

    September 30, 2016     December 31, 2015  
             
             
Note Payable, due January 2017, net of discount of $42,966 and $171,868, respectively   $ 4,957,034     $ 4,828,132  
                 
Note Payable, due January 2017     771,309       942,918  
                 
Note Payable, due October 2018     92,252       132,596  
                 
Mortgage Note, South Africa, due July 2024     218,436       208,131  
                 
Bank overdraft facilities, South Africa, annual renewal     165,095       180,377  
                 
Equipment financing arrangements, South Africa     156,558       189,490  
                 
2016 Credit facility, due January 2017     75,004       -  
                 
Total long-term debt   $ 6,435,688     $ 6,481,644  
Current portion of long-term debt     6,130,583       5,383,003  
Long-term debt, less current portion   $ 305,105     $ 1,098,641  

 

The Company entered into a Receivables Financing Agreement with a lender on June 22, 2016. In consideration for proceeds to the Company of $125,000, the Company agreed to remit $156,250 from the merchant accounts of two of its restaurant locations directly to the lender. The daily amounts to be remitted to the lender, and the resulting term under which the borrowings will ultimately be outstanding, are based on remitting approximately 5% of the total daily credit card receipts of the two restaurant locations. It is expected that the $156,250 will be remitted in full within approximately nine months from the date of the advance. The Company granted a security interest in the credit card receivables of the two restaurants, which would be effective in the event of a default.

 

For the nine months ended September 30, 2016 and 2015 amortization of debt discount was $128,902 and $128,898, respectively.

 

See Note 16 “Subsequent Events.”