Quarterly report pursuant to Section 13 or 15(d)

ACQUISITIONS (Tables)

v2.4.0.8
ACQUISITIONS (Tables)
 9 Months Ended
Sep. 30, 2014
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The assets acquired and the liabilities assumed were recorded at estimated fair values based on information currently available and based on certain assumptions as to future operations as follows:
 
 
 
2014 Acquisitions
 
 
 
 
 
Hooters
 
 
 
Hooters Australia
 
The
 
 
 
 
 
Pacific NW
 
Spoon
 
April 1, 2014
 
July 1, 2014
 
Burger Co.
 
Total
 
Consideration paid:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
$
2,891,156
 
$
828,750
 
$
-
 
$
-
 
$
300,000
 
$
4,019,906
 
Warrants
 
 
978,000
 
 
280,400
 
 
-
 
 
515,600
 
 
-
 
 
1,774,000
 
Assumption of debt
 
 
-
 
 
-
 
 
-
 
 
5,123,333
 
 
-
 
 
5,123,333
 
Cash
 
 
-
 
 
-
 
 
100,000
 
 
-
 
 
250,000
 
 
350,000
 
Total consideration paid
 
 
3,869,156
 
 
1,109,150
 
 
100,000
 
 
5,638,933
 
 
550,000
 
 
11,267,239
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets, excluding cash
 
 
112,078
 
 
89,817
 
 
377,296
 
 
47,777
 
 
9,926
 
 
636,894
 
Property and equipment
 
 
2,731,031
 
 
391,462
 
 
2,934,307
 
 
1,603,557
 
 
284,795
 
 
7,945,152
 
Goodwill
 
 
1,951,909
 
 
698,583
 
 
-
 
 
9,002,738
 
 
256,379
 
 
11,909,609
 
Trademark/trade name/franchise fee
 
 
60,937
 
 
-
 
 
277,867
 
 
220,500
 
 
-
 
 
559,304
 
Deposits and other assets
 
 
20,275
 
 
5,193
 
 
90,371
 
 
20,186
 
 
-
 
 
136,025
 
Total assets acquired, less cash
 
 
4,876,230
 
 
1,185,055
 
 
3,679,841
 
 
10,894,758
 
 
551,100
 
 
21,186,984
 
Liabilities assumed
 
 
(1,009,348)
 
 
(97,541)
 
 
(1,560,710)
 
 
(1,496,536)
 
 
(1,100)
 
 
(4,165,235)
 
Deferred tax liabilities
 
 
-
 
 
-
 
 
 
 
 
 
 
 
-
 
 
-
 
Non-controlling interest
 
 
-
 
 
-
 
 
(993,999)
 
 
(3,759,289)
 
 
-
 
 
(4,753,288)
 
Chanticleer equity
 
 
-
 
 
-
 
 
(1,028,749)
 
 
-
 
 
-
 
 
(1,028,749)
 
Common stock and warrants issued
 
 
(3,869,156)
 
 
(1,109,150)
 
 
-
 
 
(5,638,933)
 
 
(300,000)
 
 
(10,917,239)
 
Cash paid
 
 
-
 
 
-
 
 
(100,000)
 
 
-
 
 
(250,000)
 
 
(350,000)
 
Cash received in excess of cash paid
 
$
2,274
 
$
21,636
 
$
3,617
 
$
-
 
$
-
 
$
27,527
 
 
 
 
2013 Acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ARB
 
WEW
 
JF
 
Total
 
Consideration paid:
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
$
3,611,126
 
$
-
 
$
-
 
$
3,611,126
 
Warrants
 
 
1,710,077
 
 
-
 
 
-
 
 
1,710,077
 
Cash
 
 
-
 
 
3,150,000
 
 
590,000
 
 
3,740,000
 
Total consideration paid
 
 
5,321,203
 
 
3,150,000
 
 
590,000
 
 
9,061,203
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets, excluding cash
 
 
281,574
 
 
151,546
 
 
42,206
 
 
475,326
 
Property and equipment
 
 
3,000,122
 
 
20,493
 
 
242,531
 
 
3,263,146
 
Goodwill
 
 
2,550,611
 
 
3,159,500
 
 
425,151
 
 
6,135,262
 
Trademark/trade name/franchise fee
 
 
1,784,443
 
 
-
 
 
1,010,000
 
 
2,794,443
 
Deposits and other assets
 
 
98,035
 
 
-
 
 
-
 
 
98,035
 
Total assets acquired, less cash
 
 
7,714,785
 
 
3,331,539
 
 
1,719,888
 
 
12,766,212
 
Liabilities assumed
 
 
(1,490,288)
 
 
(372,824)
 
 
(282,317)
 
 
(2,145,429)
 
Deferred tax liabilities
 
 
(956,000)
 
 
-
 
 
(384,000)
 
 
(1,340,000)
 
Non-controlling interest
 
 
-
 
 
-
 
 
(463,571)
 
 
(463,571)
 
Chanticleer equity
 
 
-
 
 
-
 
 
-
 
 
-
 
Common stock and warrants issued
 
 
(5,321,203)
 
 
-
 
 
-
 
 
(5,321,203)
 
Cash paid
 
 
-
 
 
(3,150,000)
 
 
(590,000)
 
 
(3,740,000)
 
Cash received in excess of cash paid
 
$
52,706
 
$
191,285
 
$
-
 
$
243,991
 
Business Acquisition, Pro Forma Information [Table Text Block]
The pro forma results include estimates and assumptions which management believes are reasonable. However, pro forma results are not necessarily indicative of the results that would have occurred if the business combination had been in effect on the dates indicated, or which may result in the future.
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
Net revenues
 
$
11,437,149
 
$
10,241,985
 
$
27,100,251
 
$
25,911,456
 
Loss from continuing operations
 
 
(516,733)
 
 
(1,691,741)
 
 
(3,361,231)
 
 
(3,718,031)
 
Income (loss) attributable to non-controlling interest
 
 
75,697
 
 
(8,232)
 
 
(39,342)
 
 
(39,842)
 
Net loss
 
$
(441,036)
 
$
(1,699,973)
 
$
(3,400,573)
 
$
(3,757,873)
 
Net loss per share, basic and diluted
 
$
(0.07)
 
$
(0.46)
 
$
(0.54)
 
$
(1.02)
 
Weighted average shares outstanding, basic and diluted
 
 
6,628,011
 
 
3,704,526
 
 
6,279,688
 
 
3,701,804
 
Business Combination Operating Income Loss [Table Text Block]
The following table includes information for the nine months ended September 30, 2014 Company’s 2014 acquisitions.
 
 
 
Hooters
 
 
 
Hooters
 
The
 
 
 
 
 
Pacific NW
 
Spoon
 
Australia
 
Burger Co.
 
Totals
 
Revenues
 
$
3,168,058
 
$
968,103
 
$
3,153,589
 
$
81,539
 
$
7,371,289
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of sales
 
 
885,720
 
 
403,235
 
 
897,033
 
 
33,305
 
 
2,219,293
 
Other expenses
 
 
2,380,300
 
 
722,354
 
 
2,344,558
 
 
30,847
 
 
5,478,059
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (loss)
 
$
(97,962)
 
$
(157,486)
 
$
(88,002)
 
$
17,387
 
$
(326,063)
 
Hooters Pacific NW and Spoon [Member]
  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
The assumptions were as follows:
 
Acquisitions of Hooters Pacific NW and Spoon:
 
Assumptions:
 
 
 
Risk-free interest rate
 
1.49
%
Expected life
 
5 years
 
Expected volatility
 
50.0
%
Dividends
 
0
%