Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS OF BUSINESS

v2.4.0.8
SEGMENTS OF BUSINESS
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
15.
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. On March 22, 2013, Chanticleer Holdings, Inc. announced its intention to exit the fund management business. Chanticleer Advisors, LLC (“Advisors”) resigned as manager of Chanticleer Investors II (“Investors”), effective May 1, 2013. Matthew Miller and Joe Koster, two of the current fund managers, ceased to be employed by Advisors and will manage a new entity, Boyles Asset Management, LLC (“Boyles”), which will continue management of Investors, Mr. Michael Pruitt resigned as one of the portfolio managers. From this arrangement, the Company will have an ongoing economic benefit from this aspect of the business, while eliminating the losses associated with the fund management business. Chanticleer Advisors has failed to produce profits and has produced operating losses since inception. Also based on the exit from the fund management business, on April 26, 2013 the Company’s subsidiary Chanticleer Investment Partners’ status as an investment advisor was terminated.
 
Operation of restaurants ("Restaurants")
At September 30, 2013, the Company has majority ownership of four restaurants and a management company in South Africa and one restaurant in Hungary which opened in August 2012. In South Africa, the fourth restaurant opened in February 2012 and a fifth restaurant is under construction and expected to open late in the fourth quarter of 2013. Effective September 30, 2013, the Company entered into an agreement and plan of merger with American Roadside Burgers, Inc. (“ARB”), whereby the Company acquired 100% of the outstanding shares of ARB. ARB currently operates five restaurants, 1 in Smithtown, New York, 2 in Charlotte, North Carolina, and 2 in South Carolina. At September 30, 2013, 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 late in the fourth quarter of 2013 or early in the first quarter of 2014. The operations in Australia are accounted for using the equity method. The Company has also begun activity in Brazil and signed for the acquisition of the Hooters in Nottingham, England on November 6, 2013 and began operating the restaurant on November 7, 2013.
 
Financial information regarding the Company's segments is as follows for the three and nine months ended September 30, 2013 and 2012.
 
Three months ended September 30, 2013 
 
 
 
Management
 
Restaurants
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
25,000
 
$
1,581,245
 
$
1,606,245
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
377,978
 
$
5,617
 
$
383,595
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
1,085
 
$
128,041
 
$
129,126
 
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(1,251,160)
 
$
(199,264)
 
$
(1,450,424)
 
Loss from discontinued operations
 
 
 
 
 
 
 
 
(4,403)
 
Non-controlling interest
 
 
 
 
 
 
 
 
31,355
 
Net loss
 
 
 
 
 
 
 
$
(1,423,472)
 
  
Three months ended September 30, 2012 
 
 
 
Management
 
Restaurants
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
25,000
 
$
1,710,632
 
$
1,735,632
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
28,097
 
$
11,486
 
$
39,583
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
2,444
 
$
95,439
 
$
97,883
 
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(492,334)
 
$
(282,028)
 
$
(774,362)
 
Loss from discontinued operations
 
 
 
 
 
 
 
 
(18,913)
 
Non-controlling interest
 
 
 
 
 
 
 
 
53,509
 
Net loss
 
 
 
 
 
 
 
$
(739,766)
 
 
Nine months ended September 30, 2013 
 
 
 
Management
 
Restaurants
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
75,000
 
$
4,864,410
 
$
4,939,410
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
410,834
 
$
28,107
 
$
438,941
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
4,360
 
$
368,866
 
$
373,226
 
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(2,363,459)
 
$
(569,391)
 
$
(2,932,850)
 
Loss from discontinued operations
 
 
 
 
 
 
 
 
(19,513)
 
Non-controlling interest
 
 
 
 
 
 
 
 
84,114
 
 
 
 
 
 
 
 
 
$
(2,868,249)
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
$
5,046,476
 
$
9,919,476
 
$
14,965,952
 
Non-restaurant investments
 
 
 
 
 
 
 
 
1,062,062
 
Total assets
 
 
 
 
 
 
 
$
16,028,014
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
$
3,970,112
 
$
2,852,791
 
$
6,822,903
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for non-current assets
 
$
-
 
$
215,861
 
$
215,861
 
 
 Nine months ended September 30, 2012 
 
 
 
Management
 
Restaurants
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
75,000
 
$
4,794,250
 
$
4,869,250
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
165,602
 
$
267,193
 
$
432,795
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
6,969
 
$
258,099
 
$
265,068
 
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(1,410,843)
 
$
(937,165)
 
$
(2,348,008)
 
Loss from discontinued operations
 
 
 
 
 
 
 
 
(124,872)
 
Non-controlling interest
 
 
 
 
 
 
 
 
185,711
 
Net loss
 
 
 
 
 
 
 
$
(2,287,169)
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
$
3,250,439
 
$
3,897,704
 
$
7,148,143
 
Non-restaurant investments
 
 
 
 
 
 
 
 
1,104,309
 
Total assets
 
 
 
 
 
 
 
$
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