Quarterly report pursuant to Section 13 or 15(d)


Jun. 30, 2021
Dec. 31, 2020
Short-term Debt [Line Items]    
Contractor note [1] $ 348,269 $ 348,269
Short-term Bank Loans and Notes Payable [2] 4,109,400 2,109,400
UK Bounce Back loan [3] 68,245 68,245
EIDI Loans [4] 299,900 299,900
Convertible Debt 4,037,889 4,037,889
Total Debt 8,863,703 6,916,601
Debt Instrument, Unamortized Discount (134,023) (223,681)
Total Debt, net of discount 8,729,680 6,692,920
Current portion of long-term debt 6,377,550 2,338,978
Long-term debt, less current portion 2,352,130 4,353,942
Accounts payable and accrued expenses 95,000 95,000
Merchant Capital Advances [Member]    
Short-term Debt [Line Items]    
Notes Payable [5] 27,048
BGR Franchisees [Member]    
Short-term Debt [Line Items]    
Notes Payable [6] $ 25,850
[1] The Company entered into a promissory note to repay a contractor for the build-out of a new Little Big Burger location. The note has a balance of $348,269, and a stated interest rate of 12% per year. In connection with and prior to the Merger and Spin-Off, on April 1, 2020, this note was assumed by Amergent. The Company is currently in default on this loan and a writ of garnishment was ordered against the Company in 2020 for approximately $445,000. The additional $95,000 is included in accounts payable and accrued expenses at June 30, 2021 and December 31, 2020.
[2] On April 27, 2020, Amergent received a $2.1 million loan under the first round of the Payment Protection Program (PPP Loan). The note bears interest at 1% per year, matures in April 2022, and requires monthly interest and principal payments of approximately $119,000 beginning in November 2020 and through maturity. The currently issued guidelines of the program allow for the loan proceeds to be forgiven if certain requirements are met. Any loan proceeds not forgiven will be repaid in full. The Company has currently applied for loan forgiveness in the full amount of the loan, but no assurance can be given as to the amount, if any, of forgiveness. The application for forgiveness allowed the Company to defer the timing of repayment until the forgiveness assessment is completed. See Note 10 for additional information.
[3] On November 24, 2020, Amergent received approximately $68,200 through the Bounce Back Loan Scheme in the United Kingdom. The loan has a term of six years that can be extended to 10 years. No payments are required and no interest is accrued for the first twelve months after the loan is received. After the first year, the loan accrues interest at 2.5% per year.
[4] On August 4, 2020, the Company obtained two loans under the Economic Injury Disaster Loan (“EIDL”) assistance program from the Small Business Administration (“SBA”) in light of the impact of the COVID-19 pandemic on the Company’s business. The principal amount of the loans is approximately $300,000, with proceeds to be used for working capital purposes. Interest accrues at the rate of 3.75% per year. Total installment payments, including principal and interest, are due monthly beginning August 4, 2021 in the amount of $1,762. The balance of principal and interest is payable over the next thirty years from the date of the promissory note (August 2050). There are no penalties for prepayment. Based upon guidance issued by the SBA on June 19, 2020, the EIDL loans are not required to be refinanced by the PPP Loan.
[5] During September 2019 and October 2019, the Company entered into two merchant capital advances in the amount of $46,000 and $84,700, respectively. The Company agreed to repay these advances through daily payments until those amounts were repaid with the specified interest rate per those agreements.
[6] In connection with the assets acquired from the two BGR franchisees, the Company entered into notes payable of $9,600 and $187,000 during 2018. The notes bore interest at 4% and were due within 12 months of each acquisition date. Principal and interest payments were due monthly.