Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS OF BUSINESS

v2.4.0.6
SEGMENTS OF BUSINESS
 9 Months Ended
Sep. 30, 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 September 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 September 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 nine months ended September 30, 2012 and 2011.

 

Three months ended September 30, 2012

 

    Management     Restaurants     Total  
                   
Revenues   $ 56,880     $ 1,710,632     $ 1,767,512  
                         
Interest expense   $ 28,097     $ 11,486     $ 39,583  
                         
Depreciation and amortization   $ 2,444     $ 95,439     $ 97,883  
                         
Profit (loss)   $ (511,247 )   $ (282,028 )   $ (793,275 )
Investments and other                     -  
Non-controlling interest                     53,509  
                    $ (739,766 )

  

Three months ended September 30, 2011

 

    Management     Restaurants     Total  
                   
Revenues   $ (5,726 )   $ -     $ (5,726 )
                         
Interest expense   $ 41,190     $ -     $ 41,190  
                         
Depreciation and amortization   $ 2,512     $ -     $ 2,512  
                         
Profit (loss)   $ (327,362 )   $ (20,820 )   $ (348,182 )
Investments and other                     (147,973 )
Non-controlling interest                     399  
                    $ (495,756 )

  

Nine months ended September 30, 2012

 

    Management     Restaurants     Total  
                   
Revenues   $ 113,578     $ 4,794,250     $ 4,907,828  
                         
Interest expense   $ 165,602     $ 267,193     $ 432,795  
                         
Depreciation and amortization   $ 6,969     $ 258,099     $ 265,068  
                         
Profit (loss)   $ (1,535,715 )   $ (937,165 )   $ (2,472,880 )
Investments and other                     -  
Non-controlling interest                     185,711  
                    $ (2,287,169 )
                         
Assets   $ 457,321     $ 3,897,704     $ 4,355,025  
Cash and cash equivalents                     1,694,721  
Investments                     2,202,706  
                    $ 8,252,452  
                         
Liabilities   $ 407,935     $ 1,429,069     $ 1,837,004  
                         
Expenditures for non-current assets   $ 1,346     $ 1,167,845     $ 1,169,191  

 

Nine months ended September 30, 2011

 

    Management     Restaurants     Total  
                   
Revenues   $ 468,417     $ -     $ 468,417  
                         
Interest expense   $ 63,876     $ -     $ 63,876  
                         
Depreciation and amortization   $ 7,573     $ -     $ 7,573  
                         
Profit (loss)   $ (365,191 )   $ (9,256 )   $ (374,447 )
Investments and other                     (122,966 )
Non-controlling interest                     1,376  
                    $ (496,037 )
                         
Assets   $ 506,838     $ 786,560     $ 1,293,398  
Investments                     872,216  
                    $ 2,165,614  
                         
Liabilities   $ 1,071,938     $ 716,756     $ 1,788,694  
                         
Expenditures for non-current assets   $ -     $ -     $ -