Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

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Long-Term Debt
 3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Long-Term Debt

Note 6 – Long-Term Debt

 

Long-term debt consists of the following (in thousands):

 

    March 31,     December 31,  
    2019     2018  
Term loan agreements   $ 3,121     $ 3,828  
Promissory notes     6,250       6,250  
Equipment financing agreements     661       752  
Total long-term debt     10,032       10,830  
Less: current portion of long-term debt     (2,844 )     (3,201 )
Less: discounts on warrants, net     (434 )     (479 )
Less: debt issuance costs     (27 )     (32 )
Total long-term debt, net of current portion   $ 6,727     $ 7,118  

 

Interest expense for all the Company’s debt arrangements, excluding the amortization of debt issuance costs and other discounts and fees, was approximately $0.2 million and $0.3 million for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019, the Company had $1.3 million in letters of credit outstanding for certain restaurants. These letters of credit, which are cash collateralized, are recorded as a component of security deposits on the consolidated balance sheet as of March 31, 2019.

 

The Company’s term loan agreements with Bank United are secured by substantially all of the Company’s assets. The term loan agreements contain certain affirmative and negative covenants that limit or restrict, among other things, liens and encumbrances, indebtedness, mergers, asset sales, investments, assumptions and guaranties of indebtedness of other persons, change in nature of operations, changes in fiscal year and other matters customarily restricted in such agreements. The financial covenants contained in these agreements require the borrowers to maintain a certain adjusted tangible net worth and a debt service coverage ratio. As of March 31, 2019, the Company is in compliance with all of its financial covenants under the term loan agreements.