Spicy Pickle Franchising Inc., fast casual restaurant operator and franchisor of its Spicy Pickle and Bread Garden Urban Cafe brands, announced it has secured a $2 million revolving credit line for operating capital.
The line is in the form of a convertible promissory note and secured loan agreement. Any outstanding indebtedness bears interest at the rate of 10 percent. The note will mature May 1, 2013 unless extended. The first interest only payment will not be due until September 1, 2010.
The company also reported that on May 13, 2010, it filed its first quarter report with the Securities and Exchange Commission.
Revenue for the quarter ended March 31, 2010 totaled $973,151, down 3 percent from $1 million in the year-ago quarter. Franchise fees and royalties rose to $354,454 compared with $304,975 in the first quarter 2009. The company noted that most of the revenue is derived from the company's seven owned restaurants. In May 2010, Spicy Pickle closed one of its restaurants and is looking for a site to relocate it.
The company's net loss attributable to common shareholders for the first quarter was $864,366 versus $588,650 in the year-ago quarter, a 47 percent change.
"We view our first quarter efforts as building a foundation from which to grow and prosper," said new CEO Mark Laramie in a company statement. "We are optimistic that we have the basic ingredients for a successful restaurant franchise company and we will be working diligently to improve Spicy Pickle's operations and results."
