Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS OF BUSINESS

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SEGMENTS OF BUSINESS
 3 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

12. SEGMENTS OF BUSINESS

 

The Company is organized into two segments.

 

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. On March 22, 2013, Chanticleer Holdings, Inc. announced its intention to exit the fund management business. Chanticleer Advisors, LLC (“Advisors”) resigned as manager of Chanticleer Investors II (“Investors”), effective May 1, 2013. Matthew Miller and Joe Koster, two of the current fund managers, ceased to be employed by Advisors and will control a new entity, Boyles Asset Management, LLC (“Boyles”), which will continue management of Investors,. Mr. Michael Pruitt resigned as one of the portfolio managers. From this arrangement, the Company will have an ongoing economic benefit from this aspect of the business, while eliminating the losses associated with the fund management business. Chanticleer Advisors has failed to produce profits and has produced operating losses since inception. Also based on the exit from the fund management business, on April 26, 2013 the Company’s subsidiary Chanticleer Investment Partners’ status as an investment advisor was terminated.

 

Operation of restaurants ("Restaurants")

At March 31, 2013, 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, the fourth restaurant opened in February 2012. At March 31, 2013, 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 the three months ended March 31, 2013 and 2012.

 

Three months ended March 31, 2013

 

    Management     Restaurants     Total  
                   
Revenues   $ 25,000     $ 1,642,122     $ 1,667,122  
                         
Interest expense   $ 26,222     $ 10,721     $ 36,943  
                         
Depreciation and amortization   $ 2,190     $ 112,034     $ 114,224  
                         
Loss from continuing operations   $ (621,849 )   $ (149,793 )   $ (771,642 )
Income from discontinued operations                     9,468  
Non-controlling interest                     24,331  
Net loss                   $ (737,843 )
                         
Assets   $ 1,143,885     $ 4,466,740     $ 5,610,625  
Non-restaurant investments                     1,083,185  
                    $ 6,693,810  
                         
Liabilities   $ 457,231     $ 1,431,232     $ 1,888,463  
                         
Expenditures for non-current assets   $ -     $ 23,839     $ 23,839  

 

Three months ended March 31, 2012

 

    Management     Restaurants     Total  
                   
Revenues   $ 25,000     $ 1,387,495     $ 1,412,495  
                         
Interest expense   $ 171,352     $ 13,758     $ 185,110  
                         
Depreciation and amortization   $ 2,190     $ 77,834     $ 80,024  
                         
Loss from continuing operations   $ (494,774 )   $ (209,666 )   $ (704,440 )
Loss from discontinued operations                     (61,863 )
Non-controlling interest                     62,518  
Net loss                   $ (703,785 )
                         
Assets   $ 1,887,587     $ 2,580,139     $ 4,467,726  
Non-restaurant investments                     962,735  
                    $ 5,430,461  
                         
Liabilities   $ 4,581,483     $ 1,120,350     $ 5,701,833  
                         
Expenditures for non-current assets   $ -     $ 316,683     $ 316,683