Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2012
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
11. RELATED PARTY TRANSACTIONS

 

Due to related parties

 

The Company has received non-interest bearing loans and advances from related parties. The amounts owed by the Company as of June 30, 2012 and December 31, 2011 are as follows:

 

    2012     2011  
             
Hoot SA I, LLC   $ 12,690     $ 15,409  
Chanticleer Foundation, Inc.     10,750       10,750  
Chanticleer Investors, LLC     4,045       4,045  
    $ 27,485     $ 30,204  

 

Due from related parties

 

The Company has earned income from and made advances to related parties. The amounts owed to the Company as of June 30, 2012 and December 31, 2011 are as follows:

 

    2012     2011  
             
Chanticleer Investors II, LLC   $ 3,200     $ 1,485  
Chanticleer Dividend Fund, Inc.     74,281       74,281  
Hoot SA II, III and IV, LLC's     33,195       825  
    $ 110,676     $ 76,591  

 

Management income from affiliates

 

The Company had management income from its affiliates in the three and six months ended June 30, 2012 and 2011, as follows:

 

    Three Months ended June 30,     Six Months ended June 30,  
    2012     2011     2012     2011  
Chanticleer Investors II, LLC     6,698       7,830       6,698       30,726  
North American Energy Resources, Inc.     -       -       -       1,750  
    $ 6,698     $ 7,830     $ 6,698     $ 32,476  

 

Chanticleer Investors LLC

 

Investors LLC loaned the Company $4,045 at June 30, 2012 and December 31, 2011.

 

Chanticleer Investors II LLC

 

The Company manages Investors II and earned management income of $6,698 and $30,726 in the six months ended June 30, 2012 and 2011, respectively.

 

Chanticleer Dividend Fund, Inc. ("CDF")

 

On November 10, 2010 the Company formed CDF under the general corporation laws of the State of Maryland. CDF filed a registration statement under Form N-2 to register as a non-diversified, closed-end investment company in January 2011. The Company, through Advisors, will have a role in management of CDF when its registration statement becomes effective.

 

Hoot SA, LLC; Hoot SA II, LLC; Hoot SA III, LLC; and Hoot SA IV, LLC

 

The Hoot partnerships were formed to help finance the first four Hooters restaurants in South Africa.

 

Efftec International, Inc. ("Efftec")

 

The Company's CEO became CEO and the sole director of Efftec during 2010 and the Company received 150,000 common shares and an option to acquire 150,000 shares for management services. The shares and option were initially valued at $22,500, based on the trading price of Efftec at the time.

 

North American Energy Resources, Inc. ("NAEY")

 

The Company's CEO became CEO and a director of NAEY during 2010 and the Company received 150,000 common shares for management services. The shares were valued at $10,500, based on the trading price of NAEY at the time. The Company's CEO resigned as CEO of NAEY in December 2010 and remains a director. During June 2011, the Company’s CEO contributed 1,790,440 shares of NAEY to the Company which was valued at $125,331 based on the trading price at the time. Mr. Pruitt did not receive additional compensation as a result of the transfer.

 

Chanticleer Foundation, Inc.

 

Chanticleer Foundation, Inc. is a Donor-Advised Fund whose governing body consists of Mr. Pruitt, a director of the Company and an employee of the Company. The Foundation loaned the Company $10,750 during 2011.

  

Avenel Financial Group, Inc.

 

Avenel Financial Group, Inc. is a company owned by Mr. Pruitt. Advances previously made to the Company were repaid during 2011. Avenel Financial Group, Inc. invested as a limited partner in the South African Hooters locations. Avenel Financial Group, Inc. invested $14,000, $12,500, and $25,000 in the Durban, Johannesburg, and Cape Town locations, respectively, and is entitled to receive approximately 2.0%, 1.5%, and 2.9%, respectively, of the net profits after taxation (“SA Profits”) of each of the locations. As of June 30, 2012, Avenel Financial Group, Inc. has received an aggregate of $6,441 in SA Profits and $49,816 in return of investment under the same terms as the other limited partners.