| Schedule of Assets Acquired and Liabilities Assumed Recorded at Estimated Fair Values |
The acquisitions were accounted
for using the purchase method of accounting in accordance with ASC 805 “Business Combinations” and, accordingly, the
condensed consolidated statements of operations include the results of these operations from the dates of acquisition. 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:
| |
|
2015 Acquisitions |
|
| |
|
BGR:
The Burger
Joint
|
|
|
BT’s
Burger
Joint
|
|
|
Little Big
Burger
|
|
|
Total |
|
| Consideration paid: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock |
|
$ |
1,000,000 |
|
|
$ |
1,000,848 |
|
|
$ |
2,061,469 |
|
|
$ |
4,062,317 |
|
| Cash |
|
|
4,276,429 |
|
|
|
1,400,000 |
|
|
|
3,600,000 |
|
|
|
9,276,429 |
|
| Total consideration paid |
|
$ |
5,276,429 |
|
|
$ |
2,400,848 |
|
|
$ |
5,661,469 |
|
|
$ |
13,338,746 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash acquired |
|
|
11,000 |
|
|
|
8,000 |
|
|
|
234,638 |
|
|
|
253,638 |
|
| Property and equipment |
|
|
2,164,023 |
|
|
|
1,511,270 |
|
|
|
1,711,990 |
|
|
|
5,387,283 |
|
| Goodwill |
|
|
663,037 |
|
|
|
1,040,542 |
|
|
|
2,938,279 |
|
|
|
4,641,858 |
|
| Trademark/trade name/franchise fee |
|
|
2,750,000 |
|
|
|
- |
|
|
|
1,550,000 |
|
|
|
4,300,000 |
|
| Inventory, deposits and other assets |
|
|
296,104 |
|
|
|
103,451 |
|
|
|
73,780 |
|
|
|
473,334 |
|
| Accounts held in escrow to satisfy acquired liabilities |
|
|
- |
|
|
|
- |
|
|
|
675,000 |
|
|
|
675,000 |
|
| Total assets acquired, less cash |
|
|
5,884,164 |
|
|
|
2,663,263 |
|
|
|
7,183,686 |
|
|
|
15,731,113 |
|
| Liabilities assumed |
|
|
(607,735 |
) |
|
|
(262,415 |
) |
|
|
(949,857 |
) |
|
|
(1,820,007 |
) |
| Deferred tax liabilities |
|
|
- |
|
|
|
- |
|
|
|
(572,360 |
) |
|
|
(572,360 |
) |
| Total consideration paid |
|
$ |
5,276,429 |
|
|
$ |
2,400,848 |
|
|
$ |
5,661,470 |
|
|
$ |
13,338,746 |
|
|