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Notes Payable and Long-Term Debt | 12 Months Ended
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Sep. 28, 2021
Debt Disclosure [Abstract] |
Notes Payable and Long-Term Debt | 3.Notes Payable and Long-Term Debt: Cadence Credit Facility The Company maintains a credit agreement with Cadence Bank (“Cadence”) pursuant to which, as amended, Cadence agreed to loan the Company up to $8,000,000 with a maturity date of January 31, 2023 (the “Cadence Credit Facility”). As amended by the various amendments, the Cadence Credit Facility accrues commitment fees on the daily unused balance of the facility at a rate of 0.25%. As of June 29, 2021, any borrowings under the Cadence Credit Facility, as amended, bear interest at a variable rate based upon the Company’s election of (i) 2.5% plus the base rate, which is the highest of the (a) Federal Funds Rate plus 0.5%, (b) the Cadence bank publicly-announced prime rate, and (c) LIBOR plus 1.0%, or (ii) LIBOR, with a 0.250% floor, plus 3.5%. Interest is due at the end of each calendar quarter if the Company selects to pay interest based on the base rate and at the end of each LIBOR period if it selects to pay interest based on LIBOR. During the fiscal year ended September 28, 2021, the weighted average interest rate applicable to borrowings under the Cadence Credit Facility was 3.75%. As of September 28, 2021, the Cadence Credit Facility, as amended, contains certain affirmative and negative covenants and events of default that the Company considers customary for an agreement of this type, including covenants setting a maximum leverage ratio of 5.15:1, a minimum pre-distribution fixed charge coverage ratio of 1.25:1, a minimum post-distribution fixed charge coverage ratio of 1.10:1 and minimum liquidity of $2.0 million. As of September 28, 2021, the Company was in compliance with all financial covenants under the Cadence Credit Facility. As a result of entering into the Cadence Credit Facility and the various amendments, the Company paid loan origination costs including professional fees of approximately $308,500 and is amortizing these costs over the term of the credit agreement. The obligations under the Cadence Credit Facility are collateralized by a first-priority lien on substantially all of the Company’s assets. As of September 28, 2021, there were no outstanding borrowings against the facility. Availability of the Cadence Credit Facility for borrowings is reduced by the outstanding face value of any letters of credit issued under the facility. As of September 28, 2021, the outstanding face value of such letters of credit was $157,500. Paycheck Protection Program Loans On May 7, 2020, Good Times and three of its wholly-owned subsidiaries, BDI, Drive Thru, and BDC (each a “Borrower”), entered into unsecured loans in the aggregate principal amount of $11,645,000 (the “Loans”) with Cadence Bank, N.A. (the “Lender”) pursuant to the PPP. F-13 Table of Contents In June 2021, the SBA approved forgiveness in full of the Company’s Loan as well as the Loans of the Company’s subsidiaries, including accrued interest, in the aggregate amount of $11,778,226, which was recognized as gain on debt extinguishment in the fiscal year ended September 28, 2021. The principal and accrued interest balance on each of these Loans is now zero, as of the forgiveness date specific to each of the Company’s and its subsidiaries’ Loans. Total interest expense on notes payable and capital leases was $269,000 and $755,000 for fiscal 2021 and fiscal 2020, respectively. Components of Long-Term Debt The components of long-term debt as reflected on our consolidated balance sheets are as follows (in thousands):
|  | September 28, 2021 |  |  | September 29, 2020 |
Current Maturities |  |  |  |  |  |  |  |
Cadence Credit Facility |  | $ | - |  |  | $ | 1,000 |
PPP Loans |  |  | - |  |  |  | 5,242 |
Total Current Maturities |  | $ | - |  |  | $ | 6,242 |
Maturities due after One Year |  |  |  |  |  |  |  |
Cadence Credit Facility |  |  | - |  |  |  | 4,500 |
PPP Loans |  |  | - |  |  |  | 6,403 |
Total Maturities after One Year |  | $ | - |  |  | $ | 10,903 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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