Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS, NET

v2.4.0.8
INTANGIBLE ASSETS, NET
 6 Months Ended
Jun. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block]
6.
INTANGIBLE ASSETS, 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 June 30, 2013 and December 31, 2012. The Company is amortizing these costs from the opening of each restaurant for the 20 year term of the franchise agreement with HOA.
 
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Franchise cost:
 
 
 
 
 
 
 
South Africa
 
$
433,888
 
$
358,888
 
Brazil *
 
 
135,000
 
 
135,000
 
Hungary
 
 
104,684
 
 
104,684
 
 
 
 
673,572
 
 
598,572
 
Accumulated amortization
 
 
(49,271)
 
 
(38,740)
 
Intangible assets, net
 
$
624,301
 
$
559,832
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2013 and 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization expense
 
$
5,398
 
$
4,492
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2013 and 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization expense
 
$
10,531
 
$
8,251
 
 
Amortization for franchise costs are as follows:
 
June 30,
 
Amount
 
2013
 
$
23,179
 
2014
 
 
23,179
 
2015
 
 
23,179
 
2016
 
 
23,179
 
2017
 
 
23,179
 
Thereafter
 
 
298,406
 
Totals
 
$
414,301
 
 * The Brazil franchise cost and $75,000 of the fifth South Africa franchise cost are not being amortized until we open the restaurants.