Quarterly report pursuant to Section 13 or 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 ($)
Jun. 30, 2017
Dec. 31, 2016
Short-term Debt [Line Items]    
Total Long-term Debt $ 5,462,031 $ 6,459,094
Current portion of long-term debt 928,870 6,171,649
Long-term debt, less current portion 4,533,161 287,445
Note Payable, due January 2019, net of discount and deferred financing costs of $2,161,422 and $0, respectively [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [1] 3,838,578
Note Payable, due January 2017, net of discount of $0 and $171,868, respectively [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [1] 5,000,000
Notes Payable Paragon Bank [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [2] 701,043 811,205
Note Payable [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [3] 75,000
Receivables financing facilities [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [4] 326,168 161,899
Mortgage Note, South Africa, Due July 2024[Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [5] 224,395 215,962
Bank Overdraft Facilities, South Africa, Annual Renewal [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt 174,084 124,599
Equipment Financing Arrangements, South Africa [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt $ 122,763 $ 145,430
[1] On May 4, 2017, pursuant to a Securities Purchase Agreement, the Company issued 8% non-convertible secured debentures in the principal amount of $6,000,000 and warrants to purchase 1,200,000 shares of common stock (as adjusted for the Company’s subsequent one-for-ten reverse stock split) to accredited investors. The debentures bear interest at a rate of 8% per annum, payable in cash quarterly in arrears. The debentures mature on December 31, 2018 and contain customary financial and other covenants, including a requirement to maintain positive earnings before interest, taxes, depreciation and amortization. The debentures are secured by a second priority security interest on the Company’s assets and the obligation is guaranteed by the Company’s subsidiaries. The debentures contain a mandatory redemption provision that is triggered by an asset sale. Sale of greater than 33% of the Company’s assets will also trigger an event of default. Upon any event of default, in addition to other customary remedies, the holders have the right, at their sole option, to purchase Little Big Burger from the Company, for an aggregate purchase price of $6,500,000. The warrants have an exercise price of $3.50 (as adjusted for the reverse stock split) and a ten-year term. The warrants are not exercisable until November 4, 2017. Warrants to purchase 800,000 shares include a beneficial ownership limit upon exercise of 4.99% of the number of shares of the common stock outstanding immediately after giving effect to the issuance of shares of common stock issuable upon exercise of the warrant; warrants to purchase the remaining 400,000 shares were amended to increase the beneficial ownership limit upon exercise to 19.99%. The shares of common stock underlying the warrants have registration rights, and, if the warrant shares are not registered, the holders will have the right to cashless exercise.
[2] The Company has three term loans with Paragon Bank, all of which are collateralized by all assets of the Company and personally guaranteed by our Chief Executive Officer. The outstanding balance, interest rate and maturity date of each loan is as follows: Maturity date Interest rate Principal balance Monthly principal and interest payment Note 1 9/10/2018 5.50 % $ 61,151 $ 4,406 Note 2 5/10/2019 5.25 % 262,778 11,532 Note 3 8/10/2021 5.25 % 377,114 8,500 $ 701,043 $ 24,438
[3] The Company has a promissory note payable on demand in the amount of $75,000 with 800 shares of restricted company common stock to be paid to the lender each month while the note is outstanding.
[4] During February 2017, in consideration for proceeds of $330,000, the Company agreed to remit a total of $412,500 from the merchant accounts of eight of its restaurant locations directly to a lender. The Company agreed to make payments of $1,965 per day for 210 days. The Company has the option to payoff the loan early by remitting a total of $372,900 by the 120th day. Also, during March 2017 in consideration for proceeds of $150,000, the company agreed to remit a total of $205,500 from the merchant accounts of three of its restaurant locations directly to the lender. The Company agreed to make payments of $856 per day for 240 days. The Company granted a security interest in the credit card receivables of the specified restaurants in connection with the Receivables Financing Agreements.
[5] The Company’s mortgage note is secured by the Company’s land and building used for the Hooters Port Elizabeth facility. The Company has identified several potential purchases for its land and building and anticipates closing the Port Elizabeth Hooters location in the third calendar quarter of 2017 and closing the sale of the land and building. If a transaction closes, the Company estimates it would receive gross proceeds of approximately 6 million to 8 million Rand (approximately $470,000 - $570,000 USD net estimated proceeds after broker commissions). The Company expects to pay the mortgage in full at closing using the net proceeds from the sale of the property. The net assets and liabilities related to Port Elizabeth location have been reclassified to Assets Held for Sale in the accompanying unaudited condensed consolidated balance sheet as of June 30, 2017 and an impairment loss of $634 thousand has been reflected in the accompanying unaudited condensed statement of operations for the periods ended June 30, 2017. These amounts are still subject to change and there can be no assurance that the transaction will be consummated and the estimated net proceeds and impairment loss remain subject to adjustment until finalization of the transaction.