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 ($)
Sep. 30, 2018
Dec. 31, 2017
Short-term Debt [Line Items]    
Total Long-term Debt $ 6,333,132 $ 5,741,911
Current portion of long-term debt 6,333,132 5,741,911
Long-term debt, less current portion
Notes Payable, Due December 31, 2018 [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [1] 5,706,653 4,826,610
Notes Payable Paragon Bank [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt [2] 374,424 572,276
Note Payable [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt 75,000 75,000
Note Payable, Due March 2019 [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt 4,847
Receivables Financing Facilities [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt 48,788 76,109
Bank Overdraft Facilities, South Africa, Annual Renewal [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt 117,737 164,619
Equipment Financing Arrangements, South Africa [Member]    
Short-term Debt [Line Items]    
Total Long-term Debt $ 5,683 $ 27,297
[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 annual 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, or demand repayment at 108% of the outstanding principal balance and any outstanding accrued interest. The warrants have an exercise price of $3.50 (as adjusted for the reverse stock split on May 19, 2017) and a ten-year term. 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 $6 million debentures are due and payable on December 31, 2018. The Company is in discussions with its lenders regarding the terms of an extension or new debenture to replace the expiring debenture. Those discussions are continuing and are expected to be final by the end of the year. Management cannot provide any assurance that it will be successful in negotiating an extension or a new loan or provide any assurance as to the terms and conditions of any new or extended debentures.
[2] The Company has two term loans with Paragon Bank (previously three loans, one of which was paid in full in September 2018), 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 contractual 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 % $ - $ - Note 2 5/10/2019 5.50% 102,099 11,532 Note 3 8/10/2021 5.50% 272,325 8,500 $374,424 $20,032