Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS OF BUSINESS

v2.4.0.6
SEGMENTS OF BUSINESS
 6 Months Ended
Jun. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
10. 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.

 

Operation of restaurants ("Restaurants")

At June 30, 2012, the Company has majority ownership of four restaurants and a management company in South Africa. Three of the restaurants and the management company were operating for the entire first quarter of 2012 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 June 30, 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 by the end of 2012. The operations in Australia will be accounted for using the equity method. The Company has also started activity in Hungary, Brazil and Europe, but operations have not yet commenced.

 

Financial information regarding the Company's segments is as follows for the three and six months ended June 30, 2012 and 2011.

  

Three months ended June 30, 2012
                   
    Management     Restaurants     Total  
                   
Revenues   $ 31,698     $ 1,654,829     $ 1,686,527  
                         
Interest expense   $ 64,918     $ 136,632     $ 201,550  
                         
Depreciation and amortization   $ 2,917     $ 124,170     $ 127,087  
                         
Profit (loss)   $ (624,745 )   $ (97,665 )   $ (722,410 )
Investments and other                     -  
Non-controlling interest                     (10,971 )
                    $ (733,381 )

  

Three months ended June 30, 2011 
                   
    Management     Restaurants     Total  
                   
Revenues   $ 32,830     $ -     $ 32,830  
                         
Interest expense   $ 3,927     $ -     $ 3,927  
                         
Depreciation and amortization   $ 2,512     $ -     $ 2,512  
                         
Profit (loss)   $ (233,375 )   $ 6,461     $ (226,914 )
Investments and other                     361  
Non-controlling interest                     566  
                    $ (225,987 )

  

 Six months ended June 30, 2012
                   
    Management     Restaurants     Total  
                   
Revenues   $ 56,698     $ 3,003,816     $ 3,060,514  
                         
Interest expense   $ 137,504     $ 241,264     $ 378,768  
                         
Depreciation and amortization   $ 5,689     $ 230,010     $ 235,699  
                         
Profit (loss)   $ (1,072,077 )   $ (236,241 )   $ (1,308,318 )
Investments and other                     -  
Non-controlling interest                     6,824  
                    $ (1,301,494 )
                         
Assets   $ 1,777,934     $ 3,808,825     $ 5,586,759  
Cash and cash equivalents                     3,673,005  
Investments                     847,311  
                    $ 10,107,075  
                         
Liabilities   $ 619,644     $ 634,940     $ 1,254,584  
                         
Expenditures for non-current assets   $ 3,978     $ 812,363     $ 816,341  

 

Six months ended June 30, 2011
                   
    Management     Restaurants     Total  
                   
Revenues   $ 474,143     $ -     $ 474,143  
                         
Interest expense   $ 22,686     $ -     $ 22,686  
                         
Depreciation and amortization   $ 5,061     $ -     $ 5,061  
                         
Profit (loss)   $ (32,811 )   $ 11,564     $ (21,247 )
Investments and other                     19,991  
Non-controlling interest                     976  
                    $ (280 )
                         
Assets   $ 269,154     $ 92,536     $ 361,690  
Cash and cash equivalents                     1,871  
Investments                     1,192,220  
                    $ 1,555,781  
                         
Liabilities   $ 638,374     $ -     $ 638,374  
                         
Expenditures for non-current assets   $ -     $ -     $ -