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Related Party Transactions
6 Months Ended
Mar. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

13. Related Party Transactions

 

Presently, our Chairman and President, Eric Langan, personally guarantees all of the commercial bank indebtedness of the Company. Mr. Langan receives no compensation or other direct financial benefit for any of the guarantees. The balance of our commercial bank indebtedness, net of debt discount and issuance costs, as of March 31, 2019 and September 30, 2018 is $90.8 million and $88.9 million, respectively.

 

Included in the $2.35 million borrowing on November 1, 2018 (see Note 6) was a $500,000 note borrowed from a related party (Ed Anakar, an employee of the Company and brother of our director Nourdean Anakar). The terms of this related party note are the same as the rest of the lender group in the November 1, 2018 transaction.

 

We used the services of Sherwood Forest Creations, LLC, a furniture fabrication company that manufactures tables, chairs and other furnishings for our Bombshells locations, as well as providing ongoing maintenance. Sherwood Forest is owned by a brother of Eric Langan. Amounts billed to us for goods and services provided by Sherwood Forest were $98,072 and $107,815 during the three and six months ended March 31, 2019, respectively, and $17,233 and $114,561 during the three and six months ended March 31, 2018, respectively. As of March 31, 2019 and September 30, 2018, we owed Sherwood Forest $49,258 and $73,377, respectively, in unpaid billings.

 

TW Mechanical LLC (“TW Mechanical”) provided plumbing and HVAC services to both a third-party general contractor providing construction services to the Company,  as well as directly to the Company during fiscal 2018 and 2019. TW Mechanical is 20% owned by the son-in-law of Eric Langan. Amounts billed  by TW Mechanical to the third-party general contractor were $359,500 and $435,800 for the three and six months ended March 31, 2019, respectively, and $0 and $0 for the three and six months ended March 31, 2018, respectively. Amounts billed directly to the Company were $206 and $206 for the three and six months ended March 31, 2019, respectively, and $0 and $0 for the three and six months ended March 31, 2018, respectively. As of March 31, 2019 and September 30, 2018, we owed TW Mechanical $0 and $0, respectively, in unpaid direct billings.