Quarterly report pursuant to Section 13 or 15(d)

RESTATEMENT OF 2011 AND 2012 FINANCIAL INFORMATION (Details)

v2.4.0.6
RESTATEMENT OF 2011 AND 2012 FINANCIAL INFORMATION (Details) (USD $)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
May 08, 2012
ASSETS            
Cash and cash equivalents $ 3,568,416 $ 1,871 $ 3,568,416 $ 1,871 $ 165,129  
Accounts receivable 78,096   78,096   108,714  
Other receivable 96,737   96,737   42,109  
Inventory 140,007   140,007   105,073  
Due from related parties 110,676   110,676   76,591  
Prepaid expenses 102,606   102,606   144,347  
TOTAL CURRENT ASSETS 4,096,538   4,096,538   641,963  
Property and equipment, net 2,042,963   2,042,963   1,505,059  
Intangible assets, net 968,318   968,318   721,571  
Investments at fair value 80,713   80,713   318,353  
Other investments 1,804,707   1,804,707   1,582,148  
Deposits and other assets 100,491   100,491   29,605  
TOTAL ASSETS 9,093,730 1,555,781 9,093,730 1,555,781 4,798,699  
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current maturities of long-term debt and notes payable 7,722   7,722   1,171,855  
Accounts payable and accrued expenses 922,918   922,918   478,005  
Other current liabilities 352,398   352,398   330,607  
Deferred rent 5,573   5,573   43,225  
Current maturities of capital leases payable 39,054   39,054   41,590  
TOTAL CURRENT LIABILITIES 1,355,150   1,355,150   3,720,486  
Deferred rent 76,098   76,098   7,162  
Other liabilities 216,518   216,518   263,321  
Long-term debt, less current maturities 231,519   231,519   236,109  
TOTAL LIABILITIES 1,953,682 638,374 1,953,682 638,374 4,312,931  
Commitments and contingencies (Note 13)               
Stockholders' equity:            
Common stock 396   396   151 32,400
Additional paid in capital 15,327,680   15,327,680   6,459,656  
Other comprehensive income (loss) (188,037)   (188,037)   50,650  
Non-controlling interest 165,962   165,962   593,863  
Accumulated deficit (7,639,533)   (7,639,533)   (6,092,132)  
Less treasury stock 526,420   526,420   526,420  
Total stockholders' equity 7,140,048   7,140,048   485,768  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 9,093,730   9,093,730   4,798,699  
Revenue:            
Restaurant sales, net 1,696,123 0 3,083,618 0    
Management fee income - non-affiliates 25,000 25,000 50,000 441,667    
Management fee income - affiliates 6,698 7,830 6,698 32,476    
Total revenue 1,727,821 32,830 3,140,316 474,143    
Expenses:            
Restaurant cost of sales 709,612 0 1,291,163 0    
Restaurant operating expenses 923,290 0 1,692,622 0    
Restaurant pre-opening expenses 23,499 0 64,220 0    
General and administrative expense 656,112 259,766 1,167,633 484,224    
Depreciation and amortization 87,161 2,512 167,185 5,061    
Total expenses 2,399,674 262,278 4,382,823 489,285    
Loss from operations (671,853) (229,448) (1,242,507) (15,142)    
Other income (expense)            
Equity in earnings (losses) of investments (33,348) 6,461 (43,886) 11,564 (76,113)  
Interest expense 208,102 3,927 393,212 22,686    
Total other income (expense) (241,450) 2,895 (437,098) 13,885    
Net loss before income taxes (913,303) (226,553) (1,679,605) (1,257)    
Provision for income taxes 0 0 0 0    
Net loss before non-controlling interest (913,303) (226,553) (1,679,605) (1,257)    
Non-controlling interest (69,687) (566) (132,204) (977)    
Net earnings (loss) (843,616) (225,987) (1,547,401) (280)    
Other comprehensive income (loss):            
Unrealized gain (loss) on available-for-sale securities (none applies to non-controlling interest) (132,021) (38,209) (237,639) (52,209)    
Foreign translation losses 7,666 0 (1,048) 0    
Other comprehensive loss (967,971) 264,196 (1,786,088) (52,489)    
Net earnings (loss) per share, basic and diluted (in dollars per share) $ (0.56) $ (0.18) $ (0.62) $ 0.00    
Weighted average shares outstanding (in shares) 1,502,418 1,230,487 2,498,882 1,129,124    
Cash flows from operating activities:            
Net loss (843,616) (225,987) (1,547,401) (280)    
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:            
Non-controlling interest     (132,204) (977)    
Depreciation and amortization     167,185 5,061    
Equity in earnings (losses) of investments (33,348) 6,461 (43,886) 11,564 (76,113)  
Amortization of warrants     72,063 0    
(Increase) decrease in accounts and other receivables     (24,010) (37,410)    
(Increase) decrease in prepaid expenses and other assets     84,016 (30,482)    
(Increase) decrease inventory     (34,934) 0    
Increase (decrease) in accounts payable and accrued expenses     565,300 40,162    
Advance from related party for working capital     (63,202) (36,805)    
Increase (decrease) in deferred revenue and other liabilities     0 (1,750)    
Increase (decrease) in deferred rent     31,284 0    
Net cash used by operating activities     (828,611) (94,036)    
Cash flows from investing activities:            
Proceeds from non-controlling interests     90,000 0    
Purchase of investments     904,857 160,471    
Franchise fees incurred     240,000 0    
Purchase of property and equipment     696,839 0    
Net cash provided (used) by investing activities     (1,751,696) 36,082    
Cash flows from financing activities:            
Proceeds from sale of common stock     7,051,464 0    
Loan proceeds     2,915,000 0    
Other liabilities     (25,012) 0    
Loan and capital lease repayment     (3,956,813) (2,240)    
Net cash provided (used) by financing activities     5,984,639 13,818    
Effect of exchange rate changes on cash     (1,045) 0    
Net increase in cash and cash equivalents     3,403,287 (44,136)    
Cash and cash equivalents, beginning of period     165,129 46,007 46,007  
Cash and cash equivalents, end of period 3,568,416 1,871 3,568,416 1,871 165,129  
Scenario, Previously Reported [Member]
            
ASSETS            
Cash and cash equivalents 3,673,005   3,673,005      
Accounts receivable 41,667   41,667      
Inventory 122,499   122,499      
Due from related parties 110,676   110,676      
Prepaid expenses 125,056   125,056      
TOTAL CURRENT ASSETS 4,072,903   4,072,903      
Property and equipment, net 3,102,917   3,102,917      
Intangible assets, net 769,386   769,386      
Investments at fair value 80,713   80,713      
Other investments 2,077,176   2,077,176      
Deposits and other assets 3,980   3,980      
TOTAL ASSETS 10,107,075   10,107,075      
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current maturities of long-term debt and notes payable 7,722   7,722      
Accounts payable and accrued expenses 592,963   592,963      
Other current liabilities 332,340   332,340      
Deferred rent 0   0      
Current maturities of capital leases payable 0   0      
Income taxes payable 62,555   62,555      
Due to related parties 27,485   27,485      
TOTAL CURRENT LIABILITIES 1,023,065   1,023,065      
Deferred rent 0   0      
Other liabilities 0   0      
Long-term debt, less current maturities 231,519   231,519      
TOTAL LIABILITIES 1,254,584   1,254,584      
Commitments and contingencies (Note 13)              
Stockholders' equity:            
Common stock 396   396      
Additional paid in capital 16,509,226   16,509,226      
Other comprehensive income (loss) (194,446)   (194,446)      
Non-controlling interest 398,037   398,037      
Accumulated deficit (7,334,302)   (7,334,302)      
Less treasury stock (526,420)   (526,420)      
Total stockholders' equity 8,852,491   8,852,491      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 10,107,075   10,107,075      
Revenue:            
Restaurant sales, net 1,654,829   3,003,816      
Management fee income - non-affiliates 25,000   50,000      
Management fee income - affiliates 6,698   6,698      
Total revenue 1,686,527   3,060,514      
Expenses:            
Restaurant cost of sales 606,221   1,102,770      
Restaurant operating expenses 711,808   1,327,578      
Restaurant pre-opening expenses 25,000   91,120      
General and administrative expense 656,596   1,137,868      
Depreciation and amortization 127,087   235,699      
Total expenses 2,126,712   3,895,035      
Loss from operations (440,185)   (834,521)      
Other income (expense)            
Equity in earnings (losses) of investments (33,348)   43,886      
Interest expense (201,550)   (378,768)      
Total other income (expense) (234,898)   (422,654)      
Net loss before income taxes (675,083)   (1,257,175)      
Provision for income taxes 47,327   51,143      
Net loss before non-controlling interest (722,410)   (1,308,318)      
Non-controlling interest (10,971)   6,824      
Net earnings (loss) (733,381)   (1,301,494)      
Other comprehensive income (loss):            
Unrealized gain (loss) on available-for-sale securities (none applies to non-controlling interest) (132,021)   237,639      
Foreign translation losses (4,193)   (5,472)      
Other comprehensive loss (869,595)   (1,544,605)      
Net earnings (loss) per share, basic and diluted (in dollars per share) $ (0.49)   $ (0.52)      
Weighted average shares outstanding (in shares) 1,502,418   2,498,882      
Cash flows from operating activities:            
Net loss (733,381)   (1,301,494)      
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:            
Non-controlling interest     (6,824)      
Services rendered in exchange for investment securities     9,406      
Depreciation and amortization     235,699      
Equity in earnings (losses) of investments (33,348)   43,886      
Amortization of warrants     72,063      
Bad debt expense     12,315      
(Increase) decrease in accounts and other receivables     50,000      
(Increase) decrease in prepaid expenses and other assets     170,374      
(Increase) decrease inventory     (63,233)      
Increase (decrease) in accounts payable and accrued expenses     424,261      
Increase (decrease) in income taxes payable     47,947      
Advance from related party for working capital     (63,202)      
Increase (decrease) in deferred revenue and other liabilities     (70,802)      
Increase (decrease) in deferred rent     0      
Net cash used by operating activities     (439,604)      
Cash flows from investing activities:            
Proceeds from non-controlling interests     0      
Purchase of investments     (933,948)      
Franchise fees incurred     (312,674)      
Purchase of property and equipment     (816,341)      
Net cash provided (used) by investing activities     (2,062,963)      
Cash flows from financing activities:            
Proceeds from sale of common stock     7,051,464      
Loan proceeds     2,915,000      
Other liabilities     0      
Loan and capital lease repayment     (3,942,820)      
Net cash provided (used) by financing activities     6,023,644      
Effect of exchange rate changes on cash     0      
Net increase in cash and cash equivalents     3,521,077      
Cash and cash equivalents, beginning of period     151,928      
Cash and cash equivalents, end of period 3,673,005   3,673,005      
Scenario, Adjustment [Member]
            
ASSETS            
Cash and cash equivalents (104,589)   (104,589)      
Accounts receivable 36,429   36,429      
Other receivable 96,737   96,737      
Inventory 17,508   17,508      
Due from related parties 0   0      
Prepaid expenses (22,450)   (22,450)      
TOTAL CURRENT ASSETS 23,635   23,635      
Property and equipment, net (1,059,954)   (1,059,954)      
Intangible assets, net 198,932   198,932      
Investments at fair value 0   0      
Other investments (272,469)   (272,469)      
Deposits and other assets 96,511   96,511      
TOTAL ASSETS (1,013,345)   (1,013,345)      
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current maturities of long-term debt and notes payable 0   0      
Accounts payable and accrued expenses 329,955   329,955      
Other current liabilities 20,058   20,058      
Deferred rent 5,573   5,573      
Current maturities of capital leases payable 39,054   39,054      
Income taxes payable (62,555)   (62,555)      
Due to related parties 0   0      
TOTAL CURRENT LIABILITIES 332,085   332,085      
Deferred rent 76,098   76,098      
Other liabilities 216,518   216,518      
Long-term debt, less current maturities 74,397   74,397      
TOTAL LIABILITIES 699,098   699,098      
Commitments and contingencies (Note 13)              
Stockholders' equity:            
Common stock 0   0      
Additional paid in capital (1,181,546)   (1,181,546)      
Other comprehensive income (loss) 6,409   6,409      
Non-controlling interest (232,075)   (232,075)      
Accumulated deficit (305,231)   (305,231)      
Less treasury stock 0   0      
Total stockholders' equity (1,712,443)   (1,712,443)      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (1,013,345)   (1,013,345)      
Revenue:            
Restaurant sales, net 41,294   79,802      
Management fee income - non-affiliates 0   0      
Management fee income - affiliates 0   0      
Total revenue 41,294   79,802      
Expenses:            
Restaurant cost of sales 103,391   188,393      
Restaurant operating expenses 211,482   365,044      
Restaurant pre-opening expenses (1,501)   (26,900)      
General and administrative expense (484)   29,765      
Depreciation and amortization (39,926)   (68,514)      
Total expenses 272,962   487,788      
Loss from operations (231,668)   (407,986)      
Other income (expense)            
Equity in earnings (losses) of investments 0   0      
Interest expense (6,552)   (14,444)      
Total other income (expense) (6,552)   (14,444)      
Net loss before income taxes (238,220)   (422,430)      
Provision for income taxes (47,327)   (51,143)      
Net loss before non-controlling interest (190,893)   (371,287)      
Non-controlling interest 80,658   125,380      
Net earnings (loss) (110,235)   (245,907)      
Other comprehensive income (loss):            
Unrealized gain (loss) on available-for-sale securities (none applies to non-controlling interest) 0   0      
Foreign translation losses 11,859   4,424      
Other comprehensive loss (98,376)   (241,483)      
Net earnings (loss) per share, basic and diluted (in dollars per share) $ (0.07)   $ (0.10)      
Weighted average shares outstanding (in shares) 1,502,418   2,498,882      
Cash flows from operating activities:            
Net loss (110,235)   (245,907)      
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:            
Non-controlling interest     (125,380)      
Services rendered in exchange for investment securities     0      
Depreciation and amortization     (68,514)      
Equity in earnings (losses) of investments 0   0      
Amortization of warrants     0      
Bad debt expense     (12,315)      
(Increase) decrease in accounts and other receivables     (74,010)      
(Increase) decrease in prepaid expenses and other assets     (86,358)      
(Increase) decrease inventory     28,299      
Increase (decrease) in accounts payable and accrued expenses     141,039      
Increase (decrease) in income taxes payable     (47,947)      
Advance from related party for working capital     0      
Increase (decrease) in deferred revenue and other liabilities     70,802      
Increase (decrease) in deferred rent     31,284      
Net cash used by operating activities     (389,007)      
Cash flows from investing activities:            
Proceeds from non-controlling interests     90,000      
Purchase of investments     29,091      
Franchise fees incurred     72,674      
Purchase of property and equipment     119,502      
Net cash provided (used) by investing activities     311,267      
Cash flows from financing activities:            
Proceeds from sale of common stock     0      
Other liabilities     (25,012)      
Loan and capital lease repayment     (13,993)      
Net cash provided (used) by financing activities     (39,005)      
Effect of exchange rate changes on cash     (1,045)      
Net increase in cash and cash equivalents     (117,790)      
Cash and cash equivalents, beginning of period     13,201      
Cash and cash equivalents, end of period (104,589)   (104,589)      
Scenario, Actual [Member]
            
ASSETS            
Cash and cash equivalents 3,568,416   3,568,416      
Accounts receivable 78,096   78,096      
Other receivable 96,737   96,737      
Inventory 140,007   140,007      
Due from related parties 110,676   110,676      
Prepaid expenses 102,606   102,606      
TOTAL CURRENT ASSETS 4,096,538   4,096,538      
Property and equipment, net 2,042,963   2,042,963      
Intangible assets, net 968,318   968,318      
Investments at fair value 80,713   80,713      
Other investments 1,804,707   1,804,707      
Deposits and other assets 100,491   100,491      
TOTAL ASSETS 9,093,730   9,093,730      
LIABILITIES AND STOCKHOLDERS' EQUITY            
Current maturities of long-term debt and notes payable 7,722   7,722      
Accounts payable and accrued expenses 922,918   922,918      
Other current liabilities 352,398   352,398      
Deferred rent 5,573   5,573      
Current maturities of capital leases payable 39,054   39,054      
Income taxes payable 0   0      
Due to related parties 27,485   27,485      
TOTAL CURRENT LIABILITIES 1,355,150   1,355,150      
Deferred rent 76,098   76,098      
Other liabilities 216,518   216,518      
Long-term debt, less current maturities 305,916   305,916      
TOTAL LIABILITIES 1,953,682   1,953,682      
Commitments and contingencies (Note 13)              
Stockholders' equity:            
Common stock 396   396      
Additional paid in capital 15,327,680   15,327,680      
Other comprehensive income (loss) (188,037)   (188,037)      
Non-controlling interest 165,962   165,962      
Accumulated deficit (7,639,533)   (7,639,533)      
Less treasury stock (526,420)   (526,420)      
Total stockholders' equity 7,140,048   7,140,048      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 9,093,730   9,093,730      
Revenue:            
Restaurant sales, net 1,696,123   3,083,618      
Management fee income - non-affiliates 25,000   50,000      
Management fee income - affiliates 6,698   6,698      
Total revenue 1,727,821   3,140,316      
Expenses:            
Restaurant cost of sales 709,612   1,291,163      
Restaurant operating expenses 923,290   1,692,622      
Restaurant pre-opening expenses 23,499   64,220      
General and administrative expense 656,112   1,167,633      
Depreciation and amortization 87,161   167,185      
Total expenses 2,399,674   4,382,823      
Loss from operations (671,853)   (1,242,507)      
Other income (expense)            
Equity in earnings (losses) of investments (33,348)   43,886      
Interest expense (208,102)   (393,212)      
Total other income (expense) (241,450)   (437,098)      
Net loss before income taxes (913,303)   (1,679,605)      
Provision for income taxes 0   0      
Net loss before non-controlling interest (913,303)   (1,679,605)      
Non-controlling interest 69,687   132,204      
Net earnings (loss) (843,616)   (1,547,401)      
Other comprehensive income (loss):            
Unrealized gain (loss) on available-for-sale securities (none applies to non-controlling interest) (132,021)   (237,639)      
Foreign translation losses 7,666   (1,048)      
Other comprehensive loss (967,971)   (1,786,088)      
Net earnings (loss) per share, basic and diluted (in dollars per share) $ (0.56)   $ (0.62)      
Weighted average shares outstanding (in shares) 1,502,418   2,498,882      
Cash flows from operating activities:            
Net loss (843,616)   (1,547,401)      
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:            
Non-controlling interest     (132,204)      
Services rendered in exchange for investment securities     9,406      
Depreciation and amortization     167,185      
Equity in earnings (losses) of investments (33,348)   43,886      
Amortization of warrants     72,063      
Bad debt expense     0      
(Increase) decrease in accounts and other receivables     (24,010)      
(Increase) decrease in prepaid expenses and other assets     84,016      
(Increase) decrease inventory     (34,934)      
Increase (decrease) in accounts payable and accrued expenses     565,300      
Increase (decrease) in income taxes payable     0      
Advance from related party for working capital     (63,202)      
Increase (decrease) in deferred revenue and other liabilities     0      
Increase (decrease) in deferred rent     31,284      
Net cash used by operating activities     (828,611)      
Cash flows from investing activities:            
Proceeds from non-controlling interests     90,000      
Purchase of investments     (904,857)      
Franchise fees incurred     (240,000)      
Purchase of property and equipment     (696,839)      
Net cash provided (used) by investing activities     (1,751,696)      
Cash flows from financing activities:            
Proceeds from sale of common stock     7,051,464      
Loan proceeds     2,915,000      
Other liabilities     (25,012)      
Loan and capital lease repayment     (3,956,813)      
Net cash provided (used) by financing activities     5,984,639      
Effect of exchange rate changes on cash     (1,045)      
Net increase in cash and cash equivalents     3,403,287      
Cash and cash equivalents, beginning of period     165,129      
Cash and cash equivalents, end of period $ 3,568,416   $ 3,568,416