Post-effective amendment to a registration statement that is not immediately effective upon filing

SEGMENTS OF BUSINESS

v2.4.0.6
SEGMENTS OF BUSINESS
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
13. SEGMENTS OF BUSINESS

 

The Company is organized into two segments as of the end of 2012 and 2011.

 

Management and consulting services ("Management")

 

The Company provides management and consulting services for small companies which are generally seeking to become publicly traded. The Company also provides management and investment services for Investors LLC, Investors II and other unaffiliated companies.

 

Operation of restaurants ("Restaurants")

 

At December 31, 2012, the Company has majority ownership of four restaurants and a management company in South Africa and one restaurant in Hungary which opened in August 2012. In South Africa, three of the restaurants and the management company were operating at December 31, 2011 and the fourth restaurant opened in February 2012. Majority ownership was acquired effective September 30, 2011 and these operations are consolidated with the Company’s other operations since that date. At December 31, 2012, the Company has 49% ownership of two restaurants in Australia, one of which opened in January 2012 and the second is under construction and expected to open in the second quarter of 2013. The operations in Australia will be accounted for using the equity method. The Company has also begun activity in Brazil and Europe, but has not finalized any arrangement.

  

Financial information regarding the Company's segments is as follows for 2012 and 2011.

 

Year ended December 31, 2012

 

    Management     Restaurants     Total  
                   
Revenues   $ 130,743     $ 6,752,323     $ 6,883,066  
                         
Interest expense   $ 421,587     $ 53,339     $ 474,926  
                         
Depreciation and amortization   $ 8,768     $ 374,686     $ 383,454  
                         
Net loss before non-controlling interest   $ (2,403,901 )   $ (990,632 )   $ (3,394,533 )
Non-controlling interest                     227,968  
Net loss                   $ (3,166,565 )
                         
Assets   $ 1,606,059     $ 4,990,372     $ 6,596,431  
Non-restaurant investments                     1,050,000  
Total Assets                   $ 7,646,431  
                         
Total Liabilities   $ 338,537     $ 1,779,341     $ 2,117,878  
                         
Expenditures for non-current assets   $ 2,898     $ 1,170,903     $ 1,173,801  

 

Year ended December 31, 2011

 

    Management     Restaurants     Total  
                   
Revenues   $ 496,402     $ 980,247     $ 1,476,649  
                         
Interest expense   $ 118,995     $ 64,472     $ 183,467  
                         
Depreciation and amortization   $ 8,013     $ 71,529     $ 79,542  
                         
Net loss before non-controlling interest   $ (1,035,763 )   $ (228,258 )   $ (1,264,021 )
Non-controlling interest                     101,307  
Net loss                   $ (1,162,714 )
                         
Assets   $ 950,966     $ 2,762,782     $ 3,713,748  
Non-restaurant investments                     1,084,951  
                    $ 4,798,699  
                         
Total Liabilities   $ 3,327,318     $ 985,613     $ 4,312,931  
                         
Expenditures for non-current assets   $ 2,808     $ 217,003     $ 219,811  

 

The following are revenues, operating loss, and long-lived assets by geographic area as of and for the years ended December 31:

 

Revenue:   2012     2011  
United States   $ 130,743     $ 496,402  
South Africa     6,284,186       980,247  
Hungary     468,137       -  
    $ 6,883,066     $ 1,476,649  
                 
Operating loss:     2012       2011  
United States   $ (1,968,352 )   $ (693,552 )
South Africa     (539,178 )     (262,286 )
Hungary     (378,933 )     -  
    $ (2,886,463 )   $ (955,838 )
                 
Long-lived assets, end of year:     2012       2011  
United States   $ 1,626,903     $ 1,649,049  
South Africa     1,866,855       1,835,411  
Hungary     909,828       -  
Australia     1,066,915       672,175  
Brazil     145,555       101  
    $ 5,616,056     $ 4,156,736  

 

The Company used multiple foreign currency exchange rates during the periods presented. For South Africa, for the Statements of Operations we used average rates for the period of 8.22 Rands per USD, and for the Balance Sheet current assets and liabilities were at 8.49 and non-current assets and liabilities ranging from 6.93-8.51. For Australia, for the Statement of Operations we used an average rate ranging from 1.00-1.07 USD per AUD and for the balance sheet we used 1.04 for current assets and liabilities, and 1.02-1.04 for non-current assets and liabilities.