Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated and Combined Balance Sheets (Parenthetical)

Condensed Consolidated and Combined Balance Sheets (Parenthetical) - USD ($)
Mar. 31, 2021
Dec. 31, 2020
Debt discount [1] $ 178,945 $ 223,681
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 14,532,736 14,282,736
Common stock, shares outstanding 14,532,736 14,282,736
Convertible Preferred Stock: Series 2 [Member]    
Preferred stock, par value $ 1,000 $ 1,000
Preferred stock, shares authorized 1,500 1,500
Preferred stock, shares issued 662 787
Preferred stock, shares outstanding 662 787
[1] On April 1, 2020, pursuant to an agreement among Chanticleer, Oz Rey and certain original holders of the 8% non-convertible debentures previously outstanding, the Company issued a 10% secured convertible debenture to Oz Rey in exchange for the 8% non-convertible debentures. The principal amount of the 10% secured convertible debenture is $4,037,889, payable in full on April 1, 2022, subject to extension by the holders in two-year intervals for up to 10 years from the issuance date upon Amergent meeting certain conditions. Interest is payable quarterly in cash. Prior to August 17, 2020, the 10% secured convertible debenture was convertible at any time by Oz Rey into common stock at the lower of $0.10 per share and the volume weighted average price on the last 10 trading days immediately prior to conversion. The 10% secured convertible debenture is also subject to adjustment if Amergent sells securities below this price (down round protection), among other triggers. In connection with the exchange of the debentures, Amergent issued warrants to Oz Rey and the original 8% non-convertible debenture holders to purchase 2,925,200 shares of common stock. The exercise price is $0.125 for 2,462,600 warrants and $0.50 for 462,500 warrants. The warrants can be exercised on a cashless basis and expire 10 years from the issuance date. The warrants were equity classified at March 31, 2021 and December 31, 2020. The Company recorded a debt discount of approximately $358,000 for the difference between the face value of the 10% secured convertible debenture and the estimated fair value at the April 1, 2020 issuance date and is amortizing this discount over the two-year period of the notes. Amortization of $44,736 was recorded as interest expense during the three months ended March 31, 2021.