Liquidity and Capital Resources |
12 Months Ended |
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Dec. 31, 2015 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Liquidity and Capital Resources |
Liquidity and Capital Resources
Our principal liquidity requirements are to meet our lease obligations, our working capital and capital expenditure needs and to pay principal and interest on our outstanding indebtedness. Subject to our operating performance, which, if significantly adversely affected, would adversely affect the availability of funds, we expect to finance our operations for at least the next 12 months, including costs of opening currently planned new restaurants, through cash received by us in connection with the rights offering, as well as cash provided by operations, construction allowances provided by landlords of certain locations and borrowings under our term loan agreement and equipment financing. We cannot be sure that these sources will be sufficient to finance our operations throughout this period and beyond, however, and we may seek additional financing in the future, which may or may not be available on terms and conditions satisfactory to us, or at all. As of December 31, 2015, we had cash and cash equivalents, net of overdrafts of approximately $868,000.
Our capital expenditures during fiscal 2016 will continue to be significant as we currently plan to open seven new owned STK restaurants, in addition to our necessary restaurant-level maintenance and key initiative-related capital expenditures; however we continue to evaluate all options available to us. As of March 30, 2016, we have signed one lease for a restaurant location that we expect to open in the future. Additionally, we may enter into several more letters of intent, management agreements, license agreements and/or leases during fiscal 2016. We currently anticipate our total capital expenditures for fiscal 2016, including all expenditure categories to be approximately $6.0 million. We expect to fund our anticipated capital expenditures for fiscal 2016 with current cash and investment balances on hand, expected cash flows from operations, the net proceeds from our equity rights offering completed in February 2016 and equipment financing and proceeds from expected tenant improvement allowances. Our future cash requirements will depend on many factors, including the pace of our expansion, conditions in the retail property development market, construction costs, the nature of the specific sites selected for new restaurants, and the nature of the specific leases and associated tenant improvement allowances available, if any, as negotiated with landlords. We significantly depend on our expected cash flow from operations and continued financing to fund the majority of our planned capital expenditures for 2016. If our business does not generate enough cash flow from operations as expected, and replacement funding sources are not otherwise available to us, we may not be able to expand our operations at the pace currently planned.
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