8.	restricted cash and adavances from investors

 

During June, 2013, certain investors advanced the Company $2,750,000 (and an additional $250,000 was received during July, 2013). The Company finalized documentation with the investors on August 2, 2013, these funds are restricted (and is presented in the condensed consolidated balance sheets as restricted cash in our current assets and advances from investors in our current liabilities) and are to be used on future Hooters expansion. 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 three million dollars ($3,000,000) in a private offering. The funding from the private offering is being used exclusively for the acquisition of the Nottingham, England Hooters restaurant location (complete details of the transaction are included in the Company’s Form 8-K filed with the Securities and Exchange Commission on August 5, 2013). The Company will classify the funds received as convertible notes payable in our September 30, 2013 10-Q filing. See Note 16, “Subsequent Events”, for further information.