Cash Position + COVID Debt + Loans:
Kilroy is both our landlord for our new brewery/distillery at 100 Hooper Street, and a lender. As our construction was delayed and construction costs climbed (pre-COVID) they continued to extend loans to us to get our work completed: $750k, $1m, $345k, $130k. The repayment of these loans was considered an “amortization payment” that was baked into the lease.
Kilroy completely abated our rent in 2020. In 2021 we received no abatement. We were sent into default in April of 2021 and conversations continued to escalate throughout the year. I eventually signed a two year interim lease agreement with Kilroy on April 11, 2022. This agreement delayed the amortization payments due above for two years. I am required to pay CAM in full monthly (~$22,500), direct billings (~$10,000 per month), and 15% of gross sales up to the current rent amount of $36,000.
Live Oak is our lender for all of the equipment and FF&E for the brewery/distillery. They loaned us $3.1m and have a UCC1 on all of our equipment. They are an SBA lender, and we are currently in default with them for non-payment. Our current past due amount is ~$297k. We are actively working on resolving this to get back in good standing, but it is blocking our ability to get any additional SBA funding.