Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets, Net (Tables)

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Goodwill and Other Intangible Assets, Net (Tables)
3 Months Ended
Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill

Goodwill is summarized by location as follows:

 

    March 31, 2016     December 31, 2015  
American Burger Company   $ 2,806,990     $ 2,806,990  
BGR: The Burger Joint     663,037       663,037  
Little Big Burger     2,938,279       2,938,279  
BT’s Burger Joint     978,350       978,350  
Just Fresh     495,755       425,151  
Hooters South Africa     214,544       206,503  
West End Wings UK     2,653,239       2,733,001  
Hooters Pacific NW     1,950,828       1,950,828  
Total   $ 12,701,022     $ 12,702,139  

 

Summary of Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill are summarized as follows:

 

    Three Months Ended  
    March 31, 2016     March 31, 2015  
Beginning Balance   $ 12,702,139     $ 15,617,308  
Acquisitions     70,604       426,038  
Foreign currency loss     (71,721 )     (567,607 )
Ending Balance   $ 12,701,022     $ 15,475,739  

Schedule of Other Intangible Assets

Other intangible assets, consisting of franchise costs, trademarks and tradenames, is summarized by location as follows:

 

    Estimated
Useful Life
  March 31, 2016     December 31, 2015  
Trademark, Tradenames:                    
Just Fresh   10 years   $ 1,010,000     $ 1,010,000  
American Roadside Burger   10 years     1,786,930       1,786,930  
BGR: The Burger Joint   Indefinite     1,430,000       1,430,000  
Little Big Burger   Indefinite     1,550,000       1,550,000  
          5,776,930       5,776,930  
Franchise fees:                    
South Africa   20 years     297,897       286,732  
Europe   20 years     57,956       57,566  
Australia   20 years     353,748       353,775  
Hooters Pacific NW   20 years     90,000       90,000  
BGR: The Burger Joint   Indefinite     1,320,000       1,320,000  
Chanticleer Holdings *   20 years     135,000       135,000  
          2,254,601       2,243,072  
Total Intangibles at cost         8,031,531       8,020,002  
Accumulated amortization         (827,017 )     (737,928 )
Intangible assets, net       $ 7,204,514     $ 7,282,074  

 

    Periods Ended  
    March 31, 2016     March 31, 2015  
Amortization expense   $ 82,325     $ 68,611  
                 

 

* Amortization of the Chanticleer Holdings franchise cost (related to Brazil franchise rights) will begin with the opening of a restaurant pursuant to that franchise right.