Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v2.4.1.9
Discontinued Operations
 12 Months Ended
Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

5. DISCONTINUED OPERATIONS

 

During 2013, the Company discontinued the operations of Chanticleer Investors II and Chanticleer Investment Partners, LLC and had no results of operations or cash flows from those operations in 2014.

 

On December 31, 2014, management concluded it was in the best interest of the Company to exit the Spoon business, whereby the Company executed an Asset Purchase Agreement to sell the assets of Spoon Bar & Kitchen back to the original owner. In connection with the sale of Spoon, the Company reacquired 185,000 Stock Units that had been issued at acquisition in exchange for the asset transferred pursuant to the Asset Purchase Agreement. The stock was valued at $446,050 and the net assets were valued at $1,109,062, resulting in a loss of $683,012.

 

The results of operations and related non-recurring costs associated with Spoon have been presented as discontinued operations. Additionally, the assets and liabilities of the discontinued operations have been segregated in the accompanying consolidated balance sheets.

 

The operating results from the discontinued operations for the years ended December 31, 2014 and 2013 consisted of the following:

 

    2014     2013  
             
Total revenue   $ 1,207,688     $ 53,710  
                 
Total operating expenses     1,445,636       78,925  
                 
Non-cash charge on disposal of Spoon     683,012       -  
                 
Net loss from discontinued operations   $ (920,960 )   $ (25,215 )

 

As of December 31, 2014, liabilities from discontinued operations totaled $177,393. The Company did not retain any assets related to the discontinued operation.