Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS, NET

v2.4.0.8
INTANGIBLE ASSETS, NET
 6 Months Ended
Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block]
5.
INTANGIBLE ASSETS, NET
 
GOODWILL
 
Goodwill is summarized by location as follows: 
 
 
June 30,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
 
 
 
 
South Africa
 
$
396,487
 
$
396,487
 
ARB
 
 
2,550,611
 
 
2,550,611
 
WEW (Nottingham)
 
 
3,159,500
 
 
3,124,507
 
JF
 
 
425,151
 
 
425,151
 
Hooters Pacific NW
 
 
1,951,909
 
 
-
 
Spoon
 
 
698,583
 
 
-
 
 
 
$
9,182,241
 
$
6,496,756
 
 
        Goodwill resulted from the excess paid over the fair value of the net assets acquired for the three operating restaurants in South Africa effective October 1, 2011, our ARB, Just Fresh and WEW acquisitions as of September 30, 2013, November 6, 2013 and December 10, 2013 respectively, and our acquisitions of Hooters Pacific NW and Spoon as of January 31, 2014.
 
OTHER INTANGIBLE ASSETS
 
       Franchise cost for the Company’s Hooters restaurants and trademark/trade name for the Company’s Just Fresh and ARB entities consists of the following at June 30, 2014 and December 31, 2013. The Company is amortizing these franchise costs from the opening of each restaurant for the 20-year term of the franchise agreement with HOA and the trademark/trade name over its estimated 10-year useful lives.
 
 
 
 
June 30,
 
December 31,
 
 
 
2014
 
2013
 
 
 
 
 
 
 
 
 
Franchise cost:
 
 
 
 
 
 
 
South Africa
 
$
448,888
 
$
448,888
 
Brazil *
 
 
135,000
 
 
135,000
 
Australia *
 
 
277,867
 
 
-
 
Hungary
 
 
106,506
 
 
106,506
 
Hooters Pacific NW
 
 
60,937
 
 
-
 
 
 
 
1,029,198
 
 
690,394
 
Trade name/trademark:
 
 
 
 
 
 
 
Just Fresh
 
 
1,010,000
 
 
1,010,000
 
ARB
 
 
1,784,220
 
 
1,784,327
 
 
 
 
2,794,220
 
 
2,794,327
 
Total intangible cost
 
 
3,823,418
 
 
3,484,721
 
Accumulated amortization
 
 
(214,902)
 
 
(60,089)
 
Intangible assets, net
 
$
3,608,516
 
$
3,424,632
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2014 and 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization expense
 
$
77,700
 
$
5,398
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2014 and 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization expense
 
$
153,920
 
$
10,531
 
 
 
         Amortization for franchise costs and trade name/trademarks are as follows:
 
June 30,
 
Franchise fee
 
Trade name
 
Total
 
2014
 
$
39,770
 
$
279,427
 
$
319,197
 
2015
 
 
39,770
 
 
279,427
 
 
319,197
 
2016
 
 
39,770
 
 
279,427
 
 
319,197
 
2017
 
 
39,770
 
 
279,427
 
 
319,197
 
2018
 
 
39,770
 
 
279,427
 
 
319,197
 
Thereafter
 
 
742,198
 
 
1,270,333
 
 
2,012,531
 
Totals
 
$
941,048
 
$
2,667,468
 
$
3,608,516
 
 
* The Brazil franchise cost and the Australian franchise costs related to 2 restaurants are not being amortized until they are opened.