Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS OF BUSINESS

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SEGMENTS OF BUSINESS
 3 Months Ended
Mar. 31, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
12. 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 March 31, 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 March 31, 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 in the second quarter 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 begun.

 

Financial information regarding the Company's segments is as follows for the three months ended March 31, 2012 and 2011.

 

Three months ended March 31, 2012 (Restated Note 16)

 

    Management     Restaurants     Total  
                   
Revenues   $ 25,000     $ 1,387,495     $ 1,412,495  
                         
Interest expense   $ 72,586     $ 112,524     $ 185,110  
                         
Depreciation and amortization   $ 2,190     $ 77,834     $ 80,024  
                         
Profit (loss)   $ (546,099 )   $ (220,204 )   $ (766,303 )
Investments and other                     -  
Non-controlling interest                     62,518  
                    $ (703,785 )
                         
Assets   $ 937,255     $ 2,580,139     $ 3,517,394  
Investments                     913,067  
                    $ 4,430,461  
                         
Liabilities   $ 4,581,483     $ 1,120,350     $ 5,701,833  
                         
Expenditures for non-current assets   $ -     $ 316,683     $ 316,683  

  

Three months ended March 31, 2011

 

    Management     Restaurants     Total  
                   
Revenues   $ 441,313     $ -     $ 441,313  
                         
Interest expense   $ 18,759     $ -     $ 18,759  
                         
Depreciation and amortization   $ 2,549     $ -     $ 2,549  
                         
Profit (loss)   $ 200,564     $ 5,103     $ 205,667  
Investments and other                     19,630  
Non-controlling interest                     410  
                    $ 225,707  
                         
Assets   $ 408,571     $ 87,764     $ 496,335  
Investments                     1,105,098  
                    $ 1,601,433  
                         
Liabilities   $ 565,291     $ -     $ 565,291  
                         
Expenditures for non-current assets   $ -     $ -     $ -