Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSET, NET

v2.4.0.6
INTANGIBLE ASSET, NET
 12 Months Ended
Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block]
6. INTANGIBLE ASSET, NET

 

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, 2012 at which time the Company determined that no impairment was necessary.

 

FRANCHISE COST

 

Franchise cost for the Company’s Hooters restaurants consists of the following at December 31, 2012 and December 31, 2011. The Company is amortizing these costs from the opening of each restaurant for the 20 year term of the franchise agreement with HOA.

 

    2012     2011  
             
Franchise cost:                
South Africa   $ 358,888     $ 346,140  
Brazil *     135,000       -  
Hungary     104,684       -  
      598,572       346,140  
Accumulated amortization     (38,740 )     (21,056 )
Intangible assets, net   $ 559,832     $ 325,084  
                 
Years ended December 31, 2012 and 2011:                
                 
Amortization expense   $ 18,809     $ 5,304  

 

Amortization for franchise costs are as follows:

 

December 31,   Amount  
2013   $ 23,179  
2014     23,179  
2015     23,179  
2016     23,179  
2017     23,179  
Thereafter     308,937  
Totals   $ 424,832  

 

   * The Brazil franchise cost is not being amortized until we open a restaurant.