Annual report pursuant to Section 13 and 15(d)

Convertible Notes Payable

Convertible Notes Payable
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
Convertible Notes Payable



Convertible Notes payable are summarized as follows:


    December 31, 2018     December 31, 2017  
6% Convertible notes payable due June 2018 (a)   $ 3,000,000     $ 3,000,000  
8% Convertible notes payable due March 2019 (b)     -       200,000  
Premium on above convertible note     -       12,256  
Total Convertible notes payable     3,000,000       3,212,256  
Current portion of convertible notes payable     3,000,000       3,000,000  
Convertible notes payable, less current portion   $ -     $ 212,256  


(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 capital raise in 2016, the lenders agreed to waive certain existing defaults and extended the original note maturity by eighteen months from December 31, 2016 to June 30, 2018. As of December 31, 2018, these convertible notes payable remain outstanding.


(b) On February 22, 2018, $200,000 of the Company’s convertible debt was converted into 66,667 shares of Company common stock in accordance with the terms of the convertible debt agreements.