Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS OF BUSINESS

v2.4.0.8
SEGMENTS OF BUSINESS
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
13.
SEGMENTS OF BUSINESS
 
The Company is organized into two segments.
 
Management and consulting services ("Management")
The Company provides management and consulting services for small companies which are generally seeking to become publicly traded. The Company also provides management and investment services for Investors LLC, Investors II and other unaffiliated companies. On March 22, 2013, Chanticleer Holdings, Inc. announced its intention to exit the fund management business. Chanticleer Advisors, LLC (“Advisors”) resigned as manager of Chanticleer Investors II (“Investors”), effective May 1, 2013. Matthew Miller and Joe Koster, two of the current fund managers, ceased to be employed by Advisors and will control a new entity, Boyles Asset Management, LLC (“Boyles”), which will continue management of Investors,. Mr. Michael Pruitt resigned as one of the portfolio managers. From this arrangement, the Company will have an ongoing economic benefit from this aspect of the business, while eliminating the losses associated with the fund management business. Chanticleer Advisors has failed to produce profits and has produced operating losses since inception. Also based on the exit from the fund management business, on April 26, 2013 the Company’s subsidiary Chanticleer Investment Partners’ status as an investment advisor was terminated.
 
Operation of restaurants ("Restaurants")
At June 30, 2013, the Company has majority ownership of four restaurants and a management company in South Africa and one restaurant in Hungary which opened in August 2012. In South Africa, the fourth restaurant opened in February 2012. At June 30, 2013, the Company has 49% ownership of two restaurants in Australia, one of which opened in January 2012 and the second is under construction and expected to open late in the third quarter or early in the fourth quarter of 2013. The operations in Australia will be accounted for using the equity method. The Company has also begun activity in Brazil and signed a binding letter of intent in August 2013 for the acquisition of the Hooters in Nottingham, England.
 
Financial information regarding the Company's segments is as follows for the three and six months ended June 30, 2013 and 2012.
 
Three months ended June 30, 2013
 
 
 
Management
 
Restaurants
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
25,000
 
$
1,641,043
 
$
1,666,043
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
6,674
 
$
11,769
 
$
18,443
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
1,085
 
$
128,791
 
$
129,876
 
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(511,128)
 
$
(199,264)
 
$
(710,392)
 
Loss from discontinued operations
 
 
 
 
 
 
 
 
(24,980)
 
Non-controlling interest
 
 
 
 
 
 
 
 
28,428
 
Net loss
 
 
 
 
 
 
 
$
(706,944)
 
 
Three months ended June 30, 2012
 
 
 
Management
 
Restaurants
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
25,000
 
$
1,696,123
 
$
1,721,123
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
196,333
 
$
11,769
 
$
208,102
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
2,335
 
$
84,826
 
$
87,161
 
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(702,737)
 
$
(171,906)
 
$
(874,643)
 
Loss from discontinued operations
 
 
 
 
 
 
 
 
(38,660)
 
Non-controlling interest
 
 
 
 
 
 
 
 
69,687
 
Net loss
 
 
 
 
 
 
 
$
(843,616)
 
 
Six months ended June 30, 2013
 
 
 
Management
 
Restaurants
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
50,000
 
$
3,283,165
 
$
3,333,165
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
32,896
 
$
22,490
 
$
55,386
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
3,275
 
$
240,825
 
$
244,100
 
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(1,133,368)
 
$
(349,057)
 
$
(1,482,425)
 
Loss from discontinued operations
 
 
 
 
 
 
 
 
(15,111)
 
Non-controlling interest
 
 
 
 
 
 
 
 
52,759
 
 
 
 
 
 
 
 
 
$
(1,444,777)
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
$
4,740,796
 
$
3,178,584
 
$
7,919,380
 
Non-restaurant investments
 
 
 
 
 
 
 
 
1,069,983
 
Total assets
 
 
 
 
 
 
 
$
8,989,363
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
$
3,493,189
 
$
1,353,609
 
$
4,846,798
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for non-current assets
 
$
-
 
$
119,186
 
$
119,186
 
 
Six months ended June 30, 2012
 
 
 
Management
 
Restaurants
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
50,000
 
$
3,083,618
 
$
3,133,618
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
137,504
 
$
255,708
 
$
393,212
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
$
4,525
 
$
162,660
 
$
167,185
 
 
 
 
 
 
 
 
 
 
 
 
Loss from continuing operations
 
$
(1,197,510)
 
$
(381,572)
 
$
(1,579,082)
 
Loss from discontinued operations
 
 
 
 
 
 
 
 
(100,523)
 
Non-controlling interest
 
 
 
 
 
 
 
 
132,204
 
Net loss
 
 
 
 
 
 
 
$
(1,547,401)
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
$
4,976,491
 
$
3,344,739
 
$
8,321,230
 
Non-restaurant investments
 
 
 
 
 
 
 
 
772,500
 
Total assets
 
 
 
 
 
 
 
$
9,093,730
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
$
619,553
 
$
1,334,129
 
$
1,953,682
 
 
 
 
 
 
 
 
 
 
 
 
Expenditures for non-current assets
 
$
1,346
 
$
935,493
 
$
936,839