Registration of securities issued in business combination transactions

Investments

v3.19.3
Investments
9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]    
Investments

4. INVESTMENTS

 

Investments at cost consist of the following:

 

    September 30,
2019
    December 31,
2018
 
                 
Chanticleer Investors, LLC   $ 373,000     $ 800,000  

 

Chanticleer Investors LLC – The Company invested $800,000 during 2011 and 2012 in exchange for a 22% ownership stake in Chanticleer Investors, LLC, which in turn held a 3% interest in Hooters of America, the operator and franchisor of the Hooters Brand worldwide. As a result, the Company’s effective economic interest in Hooters of America was approximately 0.6%. Effective June 28, 2019, Hooters of America closed on the sale of a controlling interest in the company. The consideration paid in the sale transaction was a combination of cash proceeds and equity in the newly formed company. The Company netted approximately $48,000 in cash upon the transaction and retained a non-controlling interest in the equity of the newly formed company. Based on an analysis of the transaction and the value of the cash received and retained non-controlling interest, the Company concluded that its investment was impaired as of June 30, 2019 and recorded a $435,000 write down of the investment.

4. INVESTMENTS

 

Investments at cost consist of the following at December 31, 2018 and 2017:

 

    2018     2017  
             
Chanticleer Investors, LLC   $ 800,000     $ 800,000  
                 

 

Chanticleer Investors LLC – The Company invested $800,000 during 2011 and 2012 in exchange for a 22% ownership stake in Chanticleer Investors, LLC, which in turn holds a 3% interest in Hooters of America, the operator and franchisor of the Hooters Brand worldwide. As a result, the Company’s effective economic interest in Hooters of America is approximately 0.6%.