Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSET (As Restated, see Note 17)

v2.4.0.6
INTANGIBLE ASSET (As Restated, see Note 17)
 12 Months Ended
Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block]
6. INTANGIBLE ASSET (As Restated, see Note 17)

 

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.

 

INTANGIBLE ASSETS, NET

 

Intangible assets, net at December 31, 2011 consists of franchise fees for the Company’s South African restaurants of $330,388, less amortization of $5,304. The Company is amortizing these costs from the opening of each restaurant for the 20 year term of the franchise agreement with HOA.

 

The estimated amortization of the franchise costs for the years ending December 31, 2012 and thereafter is as follows:

 

For the year ending      
December 31   Franchise Costs  
       
2012   $ 17,251  
2013     17,251  
2014     17,251  
2015     17,251  
2016     17,251  
Thereafter     238,829  
         
Total   $ 325,084