Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS, NET (RESTATED NOTE 16)

v2.4.0.6
INTANGIBLE ASSETS, NET (RESTATED NOTE 16)
 3 Months Ended
Mar. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block]
6. INTANGIBLE ASSETS, NET (RESTATED NOTE 16)

 

GOODWILL

Goodwill arose from the excess paid over the fair value of the net assets acquired for the three operating restaurants effective October 1, 2011 and amounts to $396,487. An evaluation was completed effective December 31, 2011 at which time the Company determined that no impairment was necessary. No change has occurred as of March 31, 2012 which would cause the Company to revise their evaluation.

 

FRANCHISE COST

Franchise cost for the Company’s Hooters restaurants consists of the following at March 31, 2012 and December 31, 2011. The Company is amortizing these costs from the opening of each restaurant for the 20 year term of the franchise agreement with HOA.

 

    2012     2011  
             
Goodwill   $ 396,487     $ 396,487  
Franchise cost:                
South Africa   $ 345,386     $ 330,388  
Brazil     135,000       -  
Hungary     105,000       -  
      585,386       330,388  
Accumulated amortization     (9,063 )     (5,304 )
      576,323       325,084  
Intangible assets, net   $ 972,810     $ 721,571  
                 
Three months ended March 31, 2012 and 2011:                
                 
Amortization expense   $ 3,759     $ -