Related Party Transactions |
6 Months Ended |
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Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 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, 2023 and September 30, 2022, was $119.1 million and $115.1 million, respectively. Included in the $17.0 million borrowing on October 12, 2021 are notes borrowed from related parties—one note for $500,000 (Ed Anakar, an employee of the Company and brother of our former director Nourdean Anakar) and another note for $150,000 (from a brother of Company CFO, Bradley Chhay) in which the terms of the notes are the same as the rest of the lender group. We used the services of Nottingham Creations, and previously Sherwood Forest Creations, LLC, both furniture fabrication companies that manufacture tables, chairs and other furnishings for our Bombshells locations, as well as providing ongoing maintenance. Nottingham Creations is owned by a brother of Eric Langan (as was Sherwood Forest). Amounts billed to us for goods and services provided by Nottingham Creations and Sherwood Forest were $188,285 and $188,285 during the three and six months ended March 31, 2023, respectively, and $3,112 and $27,149 during the three and six months ended March 31, 2022, respectively. As of March 31, 2023 and September 30, 2022, we owed Nottingham Creations and Sherwood Forest $110,809 and $92,808, respectively, in unpaid billings. TW Mechanical LLC 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 2023 and 2022. A son-in-law of Eric Langan owns a 50% interest in TW Mechanical. Amounts billed by TW Mechanical to the third-party general contractor were $18,000 and $64,000 for the three and six months ended March 31, 2023, respectively, and $3,809 and $3,809 for the three and six months ended March 31, 2022, respectively. Amounts billed directly to the Company were $379 and $379 for the three and six months ended March 31, 2023, respectively, and $3,704 and $84,700 for the three and six months ended March 31, 2022, respectively. As of March 31, 2023 and September 30, 2022, the Company owed TW Mechanical $0 and $9,338, respectively, in unpaid direct billings.
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