XML 25 R15.htm IDEA: XBRL DOCUMENT v3.25.0.1
Related Party Transactions
 3 Months Ended
Dec. 31, 2024
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 December 31, 2024 and September 30, 2024, was $135.1 million and $135.3 million, respectively.
Included in the debt balance as of December 31, 2024, and September 30, 2024, are notes borrowed from related parties—one note for $500,000 (from 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 $2,780 and $142,098 during the three months ended December 31, 2024, and 2023, respectively. As of December 31, 2024, and September 30, 2024, we owed Nottingham Creations and Sherwood Forest $3,300 and $18,700, respectively, in unpaid billings.
8. Related Party Transactions—continued
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 2025 and 2024. 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 $0 and $0 for the three months ended December 31, 2024, and 2023, respectively. Amounts billed directly to the Company were $720 and $2,932 for the three months ended December 31, 2024, and 2023, respectively. As of December 31, 2024 and September 30, 2024, the Company owed TW Mechanical $0 and $0, respectively, in unpaid direct billings.