10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For Quarter Ended: June 30, 2013

Commission File Number: 000-29507

CHANTICLEER HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware	20-2932652
(State or Jurisdiction of	(IRS Employer ID No)
Incorporation or Organization)

11220 Elm Lane, Suite 203, Charlotte, NC 28277

(Address of principal executive office) (zip code)

(704) 366-5122

(Issuer’s telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods as the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x.

The number of shares outstanding of registrant’s common stock, par value $.0001 per share, as of August 5, 2013, was 3,702,896 shares.

Chanticleer Holdings, Inc. and Subsidiaries

INDEX

		Page
		No.
Part I	Financial Information	3
Item 1:	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of June 30, 2013 and December 31, 2012	3
	Condensed Consolidated Statements of Operations – For the Three and Six Months Ended June 30, 2013 and 2012	4
	Condensed Consolidated Statements of Cash Flows – For the Six Months Ended June 30, 2013 and 2012	6
	Notes to Condensed Consolidated Financial Statements	8
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3:	Quantitative and Qualitative Disclosure about Market Risk	34
Item 4:	Controls and Procedures	34
Part II	Other Information	37
Item 1:	Legal Proceedings	38
Item 1A:	Risk Factors	38
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3:	Defaults Upon Senior Securities	38
Item 4:	Mine Safety Disclosures	38
Item 5:	Other Information	38
Item 6:	Exhibits	38
Signatures		38

2

Part I: FINANCIAL INFORMATION

Item 1: FINANCIAL StatemenTS

Chanticleer Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

	June 30,			December 31,
	2013			2012
ASSETS
Current assets:
Cash	$	160,550		$	1,223,803
Restricted cash		2,750,000			-
Accounts receivable		134,737			161,073
Other receivable		70,907			85,473
Inventory		169,227			227,023
Due from related parties		113,748			117,899
Prepaid expenses		216,307			170,769
Assets of discontinued operations		55,357			44,335
TOTAL CURRENT ASSETS		3,670,833			2,030,375
Property and equipment, net		2,127,114			2,316,146
Goodwill		396,487			396,487
Intangible assets, net		624,301			559,832
Investments at fair value		19,983			56,949
Other investments		1,983,927			2,116,915
Deposits and other assets		166,718			169,727
TOTAL ASSETS	$	8,989,363		$	7,646,431
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt, line of credit and notes payable	$	574,141		$	236,110
Advances from investors		2,750,000			-
Accounts payable and accrued expenses		1,102,633			1,108,305
Other current liabilities		102,774			361,586
Current maturities of capital leases payable		30,574			27,965
Deferred rent		20,049			10,825
Due to related parties		13,733			13,733
Liabilities of discontinued operations		9,031			14,328
TOTAL CURRENT LIABILITIES		4,602,935			1,772,852
Capital leases payable, less current maturities		36,337			60,518
Deferred rent		99,486			98,448
Other liabilities		108,040			186,060
TOTAL LIABILITIES		4,846,798			2,117,878
Commitments and contingencies (Note 14)
Stockholders' equity:
Common stock:  $0.0001 par value; authorized 20,000,000 shares; issued and outstanding 3,702,896 and 3,698,896 shares at June 30 2013 and December 31, 2012, respectively		370			370
Additional paid in capital		14,992,022			14,898,423
Other comprehensive loss		(163,792	)		(181,741	)
Accumulated deficit		(10,703,474	)		(9,258,697	)
Non-controlling interest		17,439			70,198
TOTAL STOCKHOLDERS' EQUITY		4,142,565			5,528,553
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	8,989,363		$	7,646,431

See accompanying notes to condensed consolidated financial statements.

3

Chanticleer Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended
	June 30,
	2013			2012
Revenue:
Restaurant sales, net	$	1,641,043		$	1,696,123
Management fee income - non-affiliates		25,000			25,000
Total revenue		1,666,043			1,721,123
Expenses:
Restaurant cost of sales		635,348			709,612
Restaurant operating expenses		932,250			923,290
Restaurant pre-opening expenses		10,201			23,499
General and administrative expenses		620,668			610,754
Depreciation and amortization		129,876			87,161
Total expenses		2,328,343			2,354,316
Loss from operations		(662,300	)		(633,193	)
Other income (expense)
Equity in losses of investments		(18,806	)		(33,348	)
Miscellaneous income		1,263			-
Interest expense		(18,443	)		(208,102	)
Total other expense		(35,986	)		(241,450	)
Loss from continuing operations before income taxes		(698,286	)		(874,643	)
Provision for income taxes		12,106			-
Loss from continuing operations		(710,392	)		(874,643	)
Loss from discontinued operations, net of taxes		(24,980	)		(38,660	)
Consolidated net loss		(735,372	)		(913,303	)
Less: Net loss attributable to non-controlling interest		28,428			69,687
Net loss attributable to Chanticleer Holdings, Inc.	$	(706,944	)	$	(843,616	)
Net loss attributable to Chanticleer Holdings, Inc.:
Loss from continuing operations	$	(681,964	)	$	(804,956	)
Loss from discontinued operations		(24,980	)		(38,660	)
	$	(706,944	)	$	(843,616	)
Other comprehensive loss:
Unrealized loss on available-for-sale securities (none applies to non-controlling interest)	$	(13,202	)	$	(132,021	)
Foreign translation income		41,400			7,666
Other comprehensive loss	$	(678,746	)	$	(967,971	)
Net loss per attributable to Chanticleer Holdings, Inc. per common share, basic and diluted:
Continuing operations attributable to common shareholders, basic and diluted	$	(0.18	)	$	(0.54	)
Discontinued operations attributable to common shareholders, basic and diluted		(0.01	)		(0.03	)
	$	(0.19	)	$	(0.56	)
Weighted average shares outstanding, basic and diluted		3,701,928			1,502,418

See accompanying notes to condensed consolidated financial statements.

4

Chanticleer Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

	For the Six Months Ended
	June 30,
	2013			2012
Revenue:
Restaurant sales, net	$	3,283,165		$	3,083,618
Management fee income - non-affiliates		50,000			50,000
Total revenue		3,333,165			3,133,618
Expenses:
Restaurant cost of sales		1,263,236			1,291,163
Restaurant operating expenses		1,912,405			1,692,622
Restaurant pre-opening expenses		10,201			64,220
General and administrative expenses		1,350,737			1,060,412
Depreciation and amortization		244,100			167,185
Total expenses		4,780,679			4,275,602
Loss from operations		(1,447,514	)		(1,141,984	)
Other income (expense)
Equity in losses of investments		(33,053	)		(43,886	)
Gain on extinguishment of debt		70,900			-
Miscellaneous income		3,825			-
Interest expense		(55,386	)		(393,212	)
Total other expense		(13,714	)		(437,098	)
Loss from continuing operations before income taxes		(1,461,228	)		(1,579,082	)
Provision for income taxes		21,197			-
Loss from continuing operations		(1,482,425	)		(1,579,082	)
Loss from discontinued operations, net of taxes		(15,111	)		(100,523	)
Consolidated net loss		(1,497,536	)		(1,679,605	)
Less: Net loss attributable to non-controlling interest		52,759			132,204
Net loss attributable to Chanticleer Holdings, Inc.	$	(1,444,777	)	$	(1,547,401	)
Net loss attributable to Chanticleer Holdings, Inc.:
Loss from continuing operations	$	(1,429,666	)	$	(1,446,878	)
Loss from discontinued operations		(15,111	)		(100,523	)
	$	(1,444,777	)	$	(1,547,401	)
Other comprehensive loss:
Unrealized loss on available-for-sale securities (none applies to
non-controlling interest)	$	(36,966	)	$	(237,639	)
Foreign translation income (loss)		54,916			(1,048	)
Other comprehensive loss	$	(1,426,827	)	$	(1,786,088	)
Net loss per attributable to Chanticleer Holdings, Inc. per common share, basic and diluted:
Continuing operations attributable to common shareholders, basic and diluted	$	(0.39	)	$	(0.58	)
Discontinued operations attributable to common shareholders, basic and diluted		(0.00	)	$	(0.04	)
	$	(0.39	)	$	(0.62	)
Weighted average shares outstanding, basic and diluted		3,700,420			2,498,882

See accompanying notes to condensed consolidated financial statements.

5

Chanticleer Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended
	June 30,
	2013			2012
Cash flows from operating activities:
Net loss	$	(1,482,425	)	$	(1,579,082	)
Less: net loss from discontinued operations		(15,111	)		(100,523	)
Net loss from continuing operations		(1,497,536	)		(1,679,605	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		244,100			167,185
Equity in losses of investments		33,053			43,886
Amortization of warrants		85,879			72,063
Common stock issued for services		7,720			9,406
Gain on debt extinguishment		(70,900	)		-
Decrease (increase) in accounts and other receivables		40,902			(24,010	)
(Increase) decrease in prepaid expenses and other assets		(38,411	)		84,016
Decrease (increase) in inventory		57,796			(34,934	)
Increase in accounts payable and accrued expenses		42,190			561,011
Increase in deferred rent		10,262			31,284
Advance from related parties for working capital		(19,525	)		(61,487	)
Net cash used in operating activities from continuing operations		(1,104,470	)		(831,185	)
Net cash (used in) provided by operating activities from discontined operations		(40,503	)		2,552
Net cash used in operating activities		(1,144,973	)		(828,633	)
Cash flows from investing activities:
Proceeds from non-controlling interests		-			90,000
Purchase (repayments) of investments		95,815			(904,857	)
Restricted cash		(2,750,000	)		-
Franchise costs		(75,000	)		(240,000	)
Purchase of property and equipment		(44,186	)		(696,839	)
Net cash used in investing activities from continuing operations		(2,773,371	)		(1,751,696	)
Net cash used in investing activities from discontinued operations		-			-
Net cash used in investing activities		(2,773,371	)		(1,751,696	)
Cash flows from financing activities:
Sale of common stock		-			7,051,464
Loan proceeds, net		342,000			2,915,000
Advances from investors		2,750,000			-
(Decrease) in other liabilities		(265,932	)		(25,012	)
Loan and capital lease repayments		(25,541	)		(3,956,813	)
Net cash provided by financing activities from continuing operations		2,800,527			5,984,639
Net cash (used in) provided by financing activities from discontinued operations		-			-
Net cash provided by financing activities		2,800,527			5,984,639
Effect of exchange rate changes on cash		54,564			(1,045	)
Net change in cash		(1,063,253	)		3,403,265
Cash, beginning of period		1,223,803			144,189
Cash, end of period	$	160,550		$	3,547,454

See accompanying notes to condensed consolidated financial statements.

6

Chanticleer Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows, continued

(Unaudited)

	Six Months Ended
	June 30,
	2013		2012
Supplemental cash flow information:
Cash paid for interest and income taxes:
Interest	$	29,606	$	191,578
Income taxes		-		-
Non-cash investing and financing activities:
Due to related party exchanged for convertible note payable	$	-	$	-
Convertible notes payable exchanged for common stock		-		1,907,238
Accrued interest exchanged for common stock		-		-
Common stock units issued for Hoot limited partner units		-		986,651

See accompanying notes to condensed consolidated financial statements.

7

Chanticleer Holdings, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Nature of Business

Organization

Chanticleer Holdings, Inc. (the “Company”) was organized October 21, 1999, under its original name, Tulvine Systems, Inc., under the laws of the State of Delaware. The Company previously had limited operations and was considered a development stage company until July 2005. On April 25, 2005, the Company formed a wholly owned subsidiary, Chanticleer Holdings, Inc. On May 2, 2005, Tulvine Systems, Inc. merged with and changed its name to Chanticleer Holdings, Inc.

The consolidated financial statements include the accounts of Chanticleer Holdings, Inc. and its subsidiaries, Chanticleer Advisors, LLC, (“Advisors”), Avenel Ventures, LLC ("Ventures"), Avenel Financial Services, LLC ("AFS"), Chanticleer Holdings Limited ("CHL"), Chanticleer Holdings Australia Pty, Ltd. (“CHA”), Chanticleer Investment Partners, LLC (“CIP”), DineOut SA Ltd. ("DineOut”), Chanticleer and Shaw Foods (Pty) Ltd. (“C&S”), Kiarabrite (Pty) Ltd (“KPL”), Dimaflo (Pty) Ltd (“DFLO”), Tundraspex (Pty) Ltd (“TPL”), Civisign (Pty) Ltd (“CPL”) and Dimalogix (Pty) Ltd (“DLOG”) (collectively referred to as “the Company,” “we,” “us,” or “the Companies”). On July 11, 2013, the names of DFLO, CPL and DLOG were changed in South Africa to Hooters Umhlanga (Pty.) Ltd., Hooters CapeTown (Pty.) Ltd., Hooters Emperors Palace (Pty.) Ltd., respectively. All significant inter-company balances and transactions have been eliminated in consolidation.

Effective May 11, 2012, the Company's common stock was reverse split, 1 share for each 2 shares issued, pursuant to a majority vote of the Company's shareholders. All share references have been adjusted as if the split occurred in all periods presented.

Further detailed information regarding the Company's subsidiaries can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

GENERAL

The accompanying condensed consolidated financial statements included in this report have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting and include all adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation. These condensed consolidated financial statements have not been audited. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the operating results for the full year.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations for interim reporting. The Company believes that the disclosures contained herein are adequate to make the information presented not misleading. However, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report for the year ended December 31, 2012, which is included in the Company’s Form 10-K. Certain amounts for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations.

8

GOING CONCERN

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. At June 30, 2013, the Company had current assets of $3,670,833, current liabilities of $4,602,935, and a working capital deficit of $932,102. The Company incurred a loss of $1,444,777 during the six months ended June 30, 2013 and had an unrealized loss from available-for-sale securities of $36,966 and foreign currency translation gains of $54,916, resulting in a comprehensive loss of $1,426,827.

The Company's corporate general and administrative expenses averaged approximately $675,000 per quarter in the first six months of 2013 and averaged approximately $650,000 per quarter during 2012. In March 2013, the Company closed its investment management business. Effective October 1, 2011, the Company acquired majority control of the restaurants in South Africa and began consolidating these operations. In August 2012, the Company opened a restaurant in Budapest, Hungary, and earns 80% of the profits with our operating partner earning 20%. The Company also earns 49% of the profits with our operating partner earning 51% in its Hooters restaurant which was opened in January 2012 in Campbelltown, Australia, a suburb of Sydney.

In addition, the Company has a note with a balance at June 30, 2013 of $232,194 owed to its bank which is due on August 10, 2013 and is currently being negotiated for an extension. In April 2013, the Company secured a $500,000 line of credit which is due in April 2014. As of June 30, 2013 the balance on the line of credit is $342,000.

The Company also has $2,750,000 of advances from investors and corresponding restricted cash as of June 30, 2013, which is earmarked for our purchase of the Hooters Nottingham (United Kingdom) purchase.On August 2, 2013, the Company entered into an agreement with seven individual accredited investors, whereby the Company issued separate 6% Secured Subordinate Convertible Notes for a total of three million dollars ($3,000,000) in a private offering. The funding from the private offering is being used exclusively for the acquisition of the Nottingham, England Hooters restaurant location (complete details of the transaction are included in the Company’s Form 8-K filed with the Securities and Exchange Commission on August 5, 2013). See Note 16, “Subsequent Events”, for further information.

The Company’s South African subsidiaries have bank overdraft and term facilities of $210,814. The Company plans to continue to use limited partnerships or other financing vehicles, if necessary, to fund its share of costs for additional Hooters restaurants.

On January 31, 2013, the Company settled outstanding liabilities of approximately $170,000 from a South African bank, previously presented in our consolidated balance sheets in “other liabilities.” Upon making a payment of approximately $99,000, the Company received a release from all other bank liabilities, resulting in a total gain on extinguishment of debt of approximately $71,000, which is presented in our financials as other income.

The Company expects to meet its obligations in 2013 with some or all of the following:

· The Company received $100,000 in January 2013 as a fee for its CEO to be a board member of Hooters of America and expects to continue to receive this fee for the next three years based on the current agreement;

· Borrow, if and to the extent available, additional funds;

· Form joint ventures or other financing vehicles.

There is no assurance that these events will occur or the Company will be able to raise sufficient capital. Therefore, substantial doubt about the Company’s ability to continue as a going concern exists. These consolidated financial statements do not reflect any adjustments that might result from the outcome of these uncertainties.

9

2. SIGNIFICANT ACCOUNTING POLICIES

There have been no material changes to our significant accounting policies previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

LOSS PER COMMON SHARE

The Company is required to report both basic earnings per share, which is based on the weighted-average number of common shares outstanding, and diluted earnings per share, which is based on the weighted-average number of common shares outstanding plus all potentially dilutive shares outstanding. For the six months ended June 30, 2013 and June 30, 2012, the number of common shares potentially issuable upon the exercise of certain warrants of 5,001,458 and 2,557,008, respectively, have not been included in the computation of diluted EPS since the effect would be antidilutive. Accordingly, no common stock equivalents are included in the loss per share calculations and basic and diluted earnings per share are the same for all periods presented.

Recent Accounting Pronouncements

On February 5, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassifed Out of Accumulated Other Income. The standard was intended to improve the reporting of reclassifications out of accumulated other comprehensive income of various components. The amendments in this update was effective for annual and interim periods beginning after December 15, 2012. The adoption of ASC No. 2013-12 did not have a material impact on the Company’s consolidated financial statements.

There are several new accounting pronouncements issued by FASB which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. At August 9, 2013, none of these pronouncements are expected to have a material effect on the financial position, results of operations or cash flows of the Company.

3. DISCONTINUED OPERATIONS

The Company closed their investment management business on May 1, 2013. A summary of the activity is presented below.

Assets and liabilities from discontinued operations

The Company had assets and liabilities for the periods ended June 30, 2013 and December 31, 2012, which is presented in our balance sheet, as follows:

	June 30,		December 31,
	2013		2012
Cash	$	287	$	24,471
Due from related parties		55,070		19,864
Assets from discontinued operations	$	55,357	$	44,335
Accounts payable	$	9,031	$	14,328
Liabilities from discontinued operations	$	9,031	$	14,328

10

Net loss from discontinued operations

The Company had a net loss from discontinued operations for the three and six months ended June 30, 2013 and 2012, which is presented in our statements of operations, as follows:

	2013						2012
	Three months ended June 30			Six months ended June 30			Three months ended June 30			Six months ended June 30
Revenues from Chanticleer Investors II, LLC	$	-		$	61,793		$	6,698		$	6,698
Expenses		24,980			76,904			45,358			107,221
Net loss from discontinued operations	$	(24,980	)	$	(15,111	)	$	(38,660	)	$	(100,523	)

Chanticleer Investors II - Chanticleer Advisors, LLC (“Advisors”) acts as the managing general partner and receives a management fee based on a percentage of profits. On March 22, 2013, Chanticleer Holdings, Inc. announced its intention to exit the fund management business, which was effectuated May 1, 2013. Advisors resigned as manager of Chanticleer Investors II (“Investors”). Matthew Miller and Joe Koster, two of the prior fund managers, ceased to be employed by Advisors and now 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 resulted in operating losses since inception.

Chanticleer Investment Partners, LLC - Chanticleer Investment Partners, LLC (“CIPs”) was formed as a wholly owned North Carolina limited liability company on September 20, 2011. CIP was formed to manage separate and customized investment accounts for investors. The Company has registered CIP as a registered investment advisor so that it can market openly to the public. In March 2013 the Company decided to exit this business and on April 26, 2013 CIP’s status as a registered investment advisor was terminated.

4. INVESTMENTS

INVESTMENTS AT FAIR VALUE CONSIST OF THE FOLLOWING AT JUNE 30, 2013 AND DECEMBER 31, 2012.

	2013		2012
Available-for-sale investments at fair value	$	19,983	$	56,949
Total	$	19,983	$	56,949

AVAILABLE-FOR-SALE SECURITIES

Activity in our available-for-sale securities may be summarized as follows:

	2013			2012
Cost at beginning and end of periods	$	263,331		$	263,331
Unrealized loss		(243,348	)		(206,382	)
Total	$	19,983		$	56,949

11

Our available-for-sale securities consist of the following:

			Unrecognized					Realized		Loss
			Holding			Fair		Holding		on
	Cost		Losses			Value		Loss		Sale
June 30, 2013
North Carolina Natural Energy		1,500		-			1,500		-		-
North American Energy		126,000		(121,100	)		4,900		-		-
North American Energy		10,500		(9,450	)		1,050		-		-
North American Energy		125,331		(112,798	)		12,533		-		-
	$	263,331	$	(243,348	)	$	19,983	$	-	$	-
December 31, 2012
North Carolina Natural Energy		1,500		-			1,500		-		-
North American Energy		126,000		(111,300	)		14,700		-		-
North American Energy		10,500		(7,350	)		3,150		-		-
North American Energy		125,331		(87,732	)		37,599		-		-
	$	263,331	$	(206,382	)	$	56,949	$	-	$	-

North Carolina Natural Energy, Inc. (“NCNE”) – NCNE is a successor to Remodel Auction Incorporated whose business was discontinued. NCNE has plans to become involved in some form of natural energy. The Company received 100,000,000 shares of NCNE (less than 1% on a fully diluted basis) for management services during 2011. The shares were valued at $1,500 based on NCNE’s valuation as a shell.

North American Energy Resources, Inc. - During the quarter ended June 30, 2009, the Company exchanged its oil & gas property investments for 700,000 shares of North American Energy Resources, Inc. ("NAEY") which were valued at $126,000 based on the closing price of NAEY on the date of the trade. At June 30, 2013 and December 31, 2012, the stock was $0.007 and $0.02 per share, respectively, and the Company recorded an unrealized loss of $121,100 and $111,300, respectively, based on the Company's determination that the price decline was temporary.

During the first quarter of 2010, the Company received an additional 150,000 shares of NAEY in exchange for management services. The shares were initially valued at $10,500, based on the trading price at the time. At June 30, 2013 and December 31, 2012, the Company recorded an unrealized loss of $9,450 and $7,350, respectively, based on the market value at the time.

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. At June 30, 2013 and December 31, 2012, the Company recorded an unrealized loss of $112,798 and $87,732, respectively, based on the market value of the securities.

NAEY appointed a new management team in December 2010 and they are seeking acquisition opportunities for onshore and offshore oil and gas properties. Accordingly, the Company determined that any decline was temporary.

OTHER INVESTMENTS ARE SUMMARIZED AS FOLLOWS AT JUNE 30, 2013 AND DECEMBER 31, 2012.

	2013		2012
Investments accounted for under the equity method	$	933,927	$	1,066,915
Investments accounted for under the cost method		1,050,000		1,050,000
Total	$	1,983,927	$	2,116,915

12

INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Activity in investments accounted for using the equity method is summarized as follows:

	June 30,			December 31,
	2013			2012
Balance, beginning of year	$	1,066,915		$	815,550
Equity in earnings (loss)		(33,053	)		(14,803	)
Investment fundings (repayments)		(99,935	)		409,543
Reclassification of investments		-			(143,375	)
Balance, end of period	$	933,927		$	1,066,915

Equity investments consist of the following at June 30, 2013 and December 31, 2012:

	2013		2012
Carrying value:
Hoot Campbelltown Pty. Ltd. (49%) - Australia	$	522,278	$	555,331
Second Hooters location (49%) - Australia		411,649		511,584
	$	933,927	$	1,066,915

Equity in losses from equity investments during the three and six months ended June 30, 2013 and 2012 follows:

	2013						2012
	Three Months Ended June 30			Six Months  Ended June 30			Three Months Ended June 30			Six Months  Ended June 30
Equity in losses:
Hoot Campbelltown (49%)		(18,806	)		(33,053	)		(33,348	)		(43,886	)
	$	(18,806	)	$	(33,053	)	$	(33,348	)	$	(43,886	)

The summarized financial data below includes the Hoot Campbelltown location in Australia, which we owned 49% of at June 30, 2013:

	2013						2012
	Three Months Ended June 30			Six Months Ended June 30			Three Months Ended June 30			Six Months Ended June 30
Revenue	$	569,838		$	1,204,412		$	767,721		$	1,875,784
Gross profit		465,358			910,254			545,896			1,327,149
Recurring expenses		503,738			977,710			613,952			1,320,099
Pre-opening costs		-			-			-			96,613
Loss from continuing operations		(38,380	)		(67,456	)		(68,056	)		(89,563	)
Net loss		(38,380	)		(67,456	)		(68,056	)		(89,563	)

13

The summarized balance sheets for the two locations in Australia of which we owned 49% at June 30, 2013 and December 31, 2012 follows:

	June 30,		December 31,
	2013		2012
ASSETS
Current assets	$	171,110	$	604,147
Non-current assets		2,573,144		2,909,276
TOTAL ASSETS	$	2,744,254	$	3,513,423
LIABILITIES
Current liabilities	$	865,022	$	1,057,911
PARTNER'S EQUITY		1,879,232		2,455,512
TOTAL LIABILITIES AND PARTNERS' EQUITY	$	2,744,254	$	3,513,423

CHA (Hoot Campbelltown Pty. Ltd and Hoot Surfers Paradise Pty. Ltd.) – CHA entered into a partnership with the current local Hooters franchisee in Australia in which CHA will own 49% and its partner own 51%. The local partner will also manage the restaurants. The first location, Hoot Campbelltown Pty. Ltd. opened in Campbelltown, a suburb of Sydney, in January 2012. A second location in Townsville, is underway with plans to open late in the third quarter or early in the fourth quarter of 2013.

INVESTMENTS ACCOUNTED FOR USING THE COST METHOD

A summary of the activity in investments accounted for using the cost method follows.

	June 30,		December 31,
	2013		2012
Investments at cost:
Balance, beginning of year	$	1,050,000	$	766,598
Impairment		-		(16,598	)
New investments		-		300,000
Total	$	1,050,000	$	1,050,000

Investments at cost consist of the following at June 30, 2013 and December 31, 2012:

	2013		2012
Chanticleer Investors, LLC	$	800,000	$	800,000
Edison Nation LLC (FKA Bouncing Brain
Productions)		250,000		250,000
	$	1,050,000	$	1,050,000

Chanticleer Investors LLC - The Company sold 1/2 of its investment in Investors LLC in May 2009, which reduced its ownership from 23% to 11.5%. Accordingly, in May 2009, the Company discontinued accounting for this investment using the equity method and began to account for the investment using the cost method. In December 2010, the Company sold an additional $75,000 of its investment at cost.

14

On April 18, 2006, the Company formed Investors LLC and sold units for $5,000,000. Investors LLC’s principal asset was a convertible note in the amount of $5,000,000 with Hooters of America, Inc. (“HOA”), collateralized by and convertible into 2% of Hooters common stock. The original note included interest at 6% and was due May 24, 2009. The note was extended until November 24, 2010 and included an increase in the interest rate to 8%.

The Company owned $1,150,000 (23%) of Investors LLC until May 29, 2009 when it sold 1/2 of its share for $575,000. Under the original arrangement, the Company received 2% of the 6% interest as a management fee ($25,000 quarterly) and 4% interest on its investment ($11,500 quarterly). Under the extended note and revised operating agreement, the Company received a management fee of $6,625 quarterly and interest income of $11,500 quarterly until it was repaid in January 2011.

On January 24, 2011, Investors LLC and its three partners combined to form HOA Holdings, LLC ("HOA LLC") and completed the acquisition of HOA and Texas Wings, Inc. ("TW"). Together HOA LLC has created an operating company with 161 company-owned locations across sixteen states, or nearly half of all domestic Hooters restaurants and over one-third of the locations worldwide.

Investors, LLC had a note receivable in the amount of $5,000,000 from HOA that was repaid at closing. Investors LLC then invested $3,550,000 in HOA LLC (approximately 3.1%) ($500,000 of which was the Company's share). One of the investors in Investors LLC that owned a $1,750,000 share is a direct investor in HOA LLC and will now carry its ownership in HOA LLC directly. In July 2012, the Company acquired an additional interest of $300,000, at cost, from one of the partners for cash, which increased our ownership to approximately 22% of Investors LLC as of December 31, 2012.

Based on the current status of this investment, the Company does not consider the investment to be impaired.

EE Investors, LLC - On January 26, 2006, we acquired an investment in EE Investors, LLC with cash in the amount of $250,000. We acquired 1,205 units (3.378%) in EE Investors, LLC, whose sole asset is 40% of Edison Nation, LLC (formerly Bouncing Brain Productions, LLC). Edison Nation was formed to provide equity capital for new inventions and help bring them to market. The initial business plan included developing the products and working with manufacturers and marketing organizations to sell the products. This has evolved into a less hands-on program which involves selling products with patents to other larger companies and retaining royalties. Edison Nation has now reached cash flow break-even, and in addition has been retained by a number of companies for which they do product searches to supplement its business. Edison Nation plans to repay the majority of its debt in 2013 and expects to subsequently begin making distributions to its owners. Based on the current status of this investment, the Company does not consider the investment to be impaired.

15

5. PROPERTY AND EQUIPMENT

Property and equipment consists of the following at June 30, 2013 and December 31, 2012:

	2013			2012
Office and computer equipment	$	35,076		$	35,076
Furniture and fixtures		47,686			47,686
Restaurant furnishings and equipment		2,870,946			2,826,760
		2,953,708			2,909,522
Accumulated depreciation		(826,594	)		(593,376	)
	$	2,127,114		$	2,316,146
Depreciation expense for the three months ended June 30, 2013 and 2012:
Restaurants	$	123,393		$	80,334
Other		1,085			2,335
Total	$	124,478		$	82,669
Depreciation expense for the six months ended June 30, 2013 and 2012:
Restaurants	$	230,294		$	154,409
Other		3,275			4,525
Total	$	233,569		$	158,934

Restaurant furnishings and equipment consists of leasehold improvements, and bar, kitchen and restaurant equipment used in our five locations opened as of June 30, 2013. Restaurant furnishings and equipment includes capital lease assets from three of our South African restaurants of $141,413 with a net book value of $69,573 and $96,230 at June 30, 2013 and December 31, 2012, respectively.

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.

16

	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.

17

7. LONG-TERM DEBT AND NOTES PAYABLE

Long-term debt and notes payable are summarized as follows.

	June 30,		December 31,
	2013		2012
Line of credit to a bank, expires April 10, 2014, interest rate of Wall St. Journal Prime (currently 3.25%) plus 1%, floor rate of 5%.	$	342,000	$	-
Note payable to a bank due in monthly installments of $1,739 including interest at Wall Street Journal Prime + 1% (minimum of 5.5%); remaining balance due August 10, 2013; collateralized by substantially all of the Company's assets and guaranteed by Mr. Pruitt		232,141		236,110
Notes payable and current portion of long-term debt	$	574,141	$	236,110

On April 11, 2013, the Company and Paragon Commercial Bank (“Paragon”) entered into a credit agreement (the “Credit Agreement”). The Credit Agreement provides for an additional $500,000 revolving credit facility with a one (1) year term from the Closing Date. This increases the Company’s obligation to Paragon to a total of approximately $732,000, which includes a prior note payable’s current outstanding balance of approximately $234,000. The Credit Agreement is available to be drawn at the Company’s discretion to finance investments in new business ventures and for the Company’s general corporate working capital requirements in the ordinary course of business. The note payable matures on August 10, 2013, and an extension is currently being negotiated, whereas the new credit facility expires on April 10, 2014.

Borrowings under the Credit Agreement bear monthly interest at the greater of: (i) floor rate of 5.00% or (ii) the Wall Street Journal’s prime plus rate (currently 3.25%) plus 1.00%. All unpaid principal and interest are due one (1) year after the Closing Date. Any borrowings are secured by a lien on all of the Company’s assets. The obligations under the Credit Agreement are guaranteed by Mike Pruitt, the Company’s Chief Executive Officer.

8. restricted cash and adavances from investors

During June, 2013, certain investors advanced the Company $2,750,000 (and an additional $250,000 was received during July, 2013). The Company finalized documentation with the investors on August 2, 2013, these funds are restricted (and is presented in the condensed consolidated balance sheets as restricted cash in our current assets and advances from investors in our current liabilities) and are to be used on future Hooters expansion. On August 2, 2013, the Company entered into an agreement with seven individual accredited investors, whereby the Company issued separate 6% Secured Subordinate Convertible Notes for a total of three million dollars ($3,000,000) in a private offering. The funding from the private offering is being used exclusively for the acquisition of the Nottingham, England Hooters restaurant location (complete details of the transaction are included in the Company’s Form 8-K filed with the Securities and Exchange Commission on August 5, 2013). The Company will classify the funds received as convertible notes payable in our September 30, 2013 10-Q filing. See Note 16, “Subsequent Events”, for further information.

18

9. OTHER LIABILITIES

Other liabilities, which consist of bank overdraft and term facilities at June 30, 2013 and December 31, 2012 are associated with the South African Operations and consist of the following:

	June 30,		December 31,
	2013		2012
Bank overdraft facilities (1)	$	55,936	$	254,251
Term facility (2)		-		112,950
Term facility (3)		154,878		180,445
		210,814		547,646
Other liabilities		108,040		361,586
Other current liabilities	$	102,774	$	186,060

During April 2013, the above overdraft facilities and term facilities were renegotiated.

(1) Bank overdraft facilities have a total maximum facility of approximately $180,000. The interest rate as of June 30, 2013 is 3%. The facilities are reviewed annually and are payable on demand. Concurrently with the January 31, 2013 mentioned in (2) below, the Company was released from a facility totaling $56,529, and a $56,529 gain on settlement of debt was recognized in the first quarter of 2013.

(2) Term facility is payable on demand and the facility is secured by certain assets of one of the Company’s shareholders. After ongoing negotiations between the bank and the Company, on January 31, 2013, $98,579 was paid in full satisfaction of the facility, resulting in a gain on settlement of debt of $14,371 which was recognized in the first quarter of 2013.

(3) The monthly payments of principal and interests of the term facility total approximately $5,000 and have been made for the period from October 1, 2011 through June 2013. The interest rate at June 30, 2013 is 9.5%.

10. capital lease payable

Capital leases payable at June 30, 2013 and December 31, 2012 is associated with the South African Operations and consists of the following.

	June 30,		December 31,
	2013		2012
Capital lease payable, due in 49 monthly installments of $1,081, including interest at 10%, through April 2016	$	33,692	$	38,548
Capital lease payable, due in 32 monthly insallments of $800 including interest at 10%, through November 2014		13,011		17,183
Capital lease payable, due in 14 monthly installments of $1,470, including interest at 10%, through May 2013		-		7,389
Capital lease payable, due in 36 monthly installments of $1,022, including interest at 10%, through February 2015		20,208		25,363
Total capital leases payable		66,911		88,483
Current maturities		30,574		27,965
Capital leases payable, less current maturities	$	36,337	$	60,518

19

The capital leases cover point of sale and other equipment for three of the South African restaurants. Annual requirements for capital lease obligations are as follows:

June 30,	Amount
2014	$	35,888
2015		26,962
2016		12,251
Total minimum lease payments		75,101
Less: amount representing interest		(8,190	)
Present Value of Net Minimum Lease Payments	$	66,911

11. Stockholders’ Equity

The Company has 20,000,000 shares of its $0.0001 par value common stock authorized at both June 30, 2013 and December 31, 2012, and 3,702,896 shares issued and outstanding and 3,698,896 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively. There are no options outstanding.

Effective May 11, 2012, the Company's common stock was reverse split, 1 share for each 2 shares issued, pursuant to a majority vote of the Company's shareholders. All share references have been adjusted as if the split occurred in to all periods presented.

2013 Transactions

On April 22, 2013, the Company issued 4,000 shares of the Company’s common stock in exchange for investor relations services to be performed over a 12 month period, valued at $7,720. On July 31, 2013, the Company terminated the service agreement, the Company will expense a total of $3,217 for the five month period of the agreement ($2,576 has been expensed through June 30, 2013).

2012 Transactions

On May 8, 2012, the Company issued 5,000 shares of its common stock in exchange for services to be performed over a six month period and valued at $32,400.

EQUITY RAISE

The Company filed a Form S-1 Registration Statement under the Securities Act of 1933 which was declared effective on June 21, 2012. The Company issued 2,444,450 units at $4.50 per unit, consisting of one share of Common Stock and one five year redeemable warrant (redeemable at the Company’s option) exercisable at $5.00 per share for an issuance value of $11 million (net $7.2 million). The issuance of shares included shares issued upon the conversion of notes payable and accrued interest of approximately $1.9 million and shares issued for the purchase of a percentage of the Hoot SA non-controlling interest of approximately $1.0 million.

During August 2012, treasury stock shares of 256,615 were cancelled and returned to the Company.

20

12. 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, 2013 and December 31, 2012 are as follows:

	2013		2012
Hoot SA I, LLC	$	12,191	$	12,191
Chanticleer Investors, LLC		1,542		1,542
	$	13,733	$	13,733

Due from related parties

The Company has earned income from and made advances to related parties. The amounts owed to the Company at June 30, 2013 and December 31, 2012 is as follows:

	2013		2012
Chanticleer Dividend Fund, Inc.	$	69,281	$	74,281
Hoot SA II, III, IV LLC		44,467		43,618
	$	113,748	$	117,899

Chanticleer Investors LLC

Investors LLC collected its note receivable and reinvested $3,550,000 in HOA LLC (See Note 4). There was no management income from Investors LLC in the three and six months ended June 30, 2013 or 2012.

Chanticleer Investors II LLC

The Company manages Investors II and earned management income in the three and six months ended June 30, 2013 of zero and $61,793, respectively and $6,698 and zero in the three and six months ended June 30, 2012, 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. CDF continues to look for opportunities to use the entity, including for growth capital in the restaurant industry.

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.

21

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.

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 until payout. As of June 30, 2013, 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.

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.

22

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	)

23

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

14. COMMITMENTS AND CONTINGENCIES

Effective August 1, 2010, the Company extended its office lease agreement for its office for a term of one year with monthly lease payments of $2,100. Since August 1, 2011, the office lease continues at the same rate on a month-to-month basis. On July 1, 2012, the Company signed a one year office lease agreement for a satellite office in Florida for one year at a monthly rate of $800; the lease was not renewed upon its expiration in June 30, 2013.

24

The Company leases the land and buildings for its four restaurants in South Africa and one restaurant in Hungary through its subsidiaries. The South Africa leases are for five year terms and the Hungary lease is for a 10 year term and include options to extend the terms. We lease some of our restaurant facilities under “triple net” leases that require us to pay minimum rent, real estate taxes, maintenance costs and insurance premiums and, in some instances, percentage rent based on sales in excess of specified amounts.

Rent obligations for our five restaurants are presented below:

Years ended June 30,
2014	$	510,595
2015		488,718
2016		445,432
2017		229,083
thereafter		554,647
Totals	$	2,228,475

Rent expense for the three and six months ended June 30, 2013 and June 30, 2012 was as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Segment:
Restaurants (1)	$	165,047	$	142,621	$	349,025	$	273,887
Management (2)		7,797		6,525		17,403		13,050
Totals	$	172,844	$	149,146	$	366,428	$	286,937

(1) Included in restaurant operating expenses of the Consolidated Statement of Operations

(2) Included in general and administrative expenses of the Consolidated Statement of Operations

On October 12, 2012, Francis Howard (“Howard”), individually and on behalf of all others similarly situated, filed a lawsuit against Chanticleer Holdings, Inc. (the “Company”), Michael D. Pruitt, Eric S. Lederer, Michael Carroll, Paul I. Moskowitz, Keith Johnson (The “Individual Defendants”), Merriman Capital, Inc., Dawson James Securities, Inc. (The “Underwriter Defendants”), and Creason & Associates P.L.L.C. (The “Auditor Defendant”), in the U.S. District Court for the Southern District of Florida.  The class action lawsuit alleges violations of Section 11 of the Securities Act against all Defendants, violations of Section 12(a)(2) of the Securities Act against only the Underwriter Defendants, and violations of Section 15 against the Individual Defendants.  Howard seeks unspecified damages, reasonable costs and expenses incurred in this action, and such other and further relief as the Court deems just and proper. On October 15th, 2012, the Honorable Judge James I. Cohn filed an Order setting the Calendar Call for the case for June 13th, 2013, and the Trial Date for the trial period commencing on June 17th, 2013.  On October 31st, 2012, the Company and the Individual Defendants retained Stanley Wakshlag at Kenny Nachwalter, P.A. to represent them in this litigation. Requests by the Underwriting Defendants for indemnification were denied.  On November 2nd, 2012, we filed a Joint Motion to Extend Deadline to Respond to Class Action Complaint, requesting that our responsive pleading deadline be delayed until after a lead Plaintiff is named.  That Motion was approved, and on December 12th, 2012, Howard filed a Motion to Appoint himself Lead Plaintiff and to Approve his selection of The Rosen Law Firm, P.A. as his Counsel.  An Order appointing Francis Howard and the Rosen Law Firm as lead Plaintiff and lead Plaintiff’s Counsel was entered on January 4, 2013. Therein, Judge Cohn also reset Calendar Call for October 10, 2013; trial was reset for the two-week period commencing October 15, 2013. On February 19, 2013, Plaintiff filed an Amended Complaint. On April 5, 2013, the Company, Individual Defendants, and the Auditor Defendant (separately) filed a Motion to Dismiss the action. Plaintiff filed an opposition to Chanticleer Defendants’ (and Auditor Defendants’) Motion to Dismiss on April 22, 2013.  On May 9, 2013, the Company and Individual Defendants filed a Reply Memorandum of Defendants Chanticleer Holdings, Inc., Michael D. Pruitt, Eric S. Lederer, Michael Carroll, Paul I Moskowitz, and Keith Johnson in support of their Motion to Dismiss the Amended Class Action Complaint.  Judge Cohn has yet to make a ruling on the Motions.  On May 20, 2013, the Plaintiff filed a Notice of Voluntary Dismissal without prejudice of Defendants Dawson James Securities, Inc. and Merrimal Capital, Inc. Pursuant to the Federal Rules of Civil Procedure 41(a)(1)(A). The Company has and will continue to vigorously defend itself in this matter.

25

On March 26, 2013, our South African operations received Notice of Motion filed in the Kwazulu-Natal High Court, Durban, Republic of South Africa, filed against Rolalor (PTY) LTD (“Rolalor”) and Labyrinth Trading 18 (PTY) LTD (“Labyrinth”) by Jennifer Catherine Mary Shaw (“Shaw”). Rolalor and Labyrinth were the original entities formed to operate the Johannesburg and Durban locations, respectively. On September 9, 2011, the assets and the then-disclosed liabilities of these entities were transferred to Tundraspex (PTY) LTD (“Tundraspex”) and Dimaflo (PTY) LTD (“Dimaflo”), respectively. The current entities, Tundraspex and Dimaflo are not parties in the lawsuit. Shaw is requesting that the Respondents, Rolalor and Labyrinth, be wound up in satisfaction of an alleged debt owed in the total amount of R4,082,636.13 (approximately $442,189). The Company has and will continue to vigorously defend itself in this matter.

On April 1, 2013, the Company received a subpoena from the Securities and Exchange Commission seeking information regarding our South African entities’ previous accounting issues. The Company responded as required by the due date of April 30, 2013 and intends to otherwise comply as required.

The Company has engaged outside South African tax experts in September 2012 to assist with compliance with Value Added Tax (VAT), payroll taxes, and income taxes in South Africa. A voluntary disclosure agreement has been submitted and the Company is awaiting contact from the South African governmental agency. As of June 30, 2013, $375,084 has been accrued and is included in accounts payable and accrued expenses in our condensed consolidated balance sheet.

In connection with the acquisition of the business as described in Note 3 (whereby, on October 1, 2011, Rolalor (Pty.) Ltd., Almenta 177 (Pty.) Ltd. and Labyrinth Trading (Pty.) Ltd. transferred their respective net assets to the newly formed entities controlled by the Company), the Company believes the purchase and sale with the seller was accomplished in accordance with the laws and regulations of the taxing authorities in South Africa. However, there can be no absolute assurance as to whether the business acquired continues to have any outstanding tax and regulatory filing requirements, as well as whether the local authorities could seek to recover any unpaid taxes or other amounts due from the Company, its shareholders or others. The Company is not aware of any existing obligations that remain outstanding for which the Company may be required to settle. In connection with acquiring the net assets of the business, the Company may be entitled to be reimbursed by the seller for any pre-acquisition obligations of the business that may arise, post-acquisition.

In addition, the Company’s South African subsidiaries have not filed certain corporate income tax returns for previous years, which could potentially result in penalties upon filing these returns.

26

15. DISCLOSURES ABOUT FAIR VALUE

Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables according to FASB ASC 820 pricing levels.

	Fair Value Measurement Using
			Quoted prices
			in active		Significant
			markets of		other		Significant
			identical		observable		Unobservable
	Recorded		assets		inputs		Inputs
	value		(Level 1)		(Level 2)		(Level 3)
June 30, 2013
Assets:
Available-for-sale securities	$	19,983	$	18,483	$	1,500	$	-
December 31, 2012
Assets:
Available-for-sale securities	$	56,949	$	55,449	$	1,500	$	-

At June 30, 2013 and December 31, 2012, the Company's available-for-sale equity securities were valued using Level 1 and Level 2 inputs as summarized above. Level 1 inputs are based on unadjusted prices for identical assets in active markets that the Company can access. Level 2 inputs are based on quoted prices for similar assets other than quoted prices in Level 1, quoted prices in markets that are not yet active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets.

The Company does not have any investments that are measured on a recurring basis using Level 3 inputs.

Certain assets are not carried at fair value on a recurring basis, including investments accounted for under the equity and cost methods. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to re-measurement at fair value after initial recognition and the resulting re-measurement is reflected in the consolidated financial statements.

See Note 4 for further details of the Company's investments.

16. SUBSEQUENT EVENTS

On August 2, 2013, the Company entered into an agreement with seven individual accredited investors, whereby the Company issued separate 6% Secured Subordinate Convertible Notes for a total of three million dollars ($3,000,000) in a private offering. The funding from the private offering is being used exclusively for the acquisition of the Nottingham, England Hooters restaurant location (complete details of the transaction included in the Form 8-K filed with the Securities and Exchange Commission on August 5, 2013). The funding from the private offering is being used exclusively for the acquisition of the Nottingham, England Hooters restaurant location (acquisition detailed below). The Notes have the following principal terms:

· the principal amount of the Note shall be repaid within thirty six (36) months of the issuance date at a non-compounded six percent (6%) interest rate per annum;

· the Note holders shall receive ten percent (10%), pro rata, of the net profit of the Nottingham, England Hooters restaurant, paid quarterly for the life of the location, and ten percent (10%) of the net proceeds should the location be sold;

· the consortium of investors received a total of three hundred thousand (300,000) three (3) year warrants, exercisable at three dollars ($3.00) per share;

27

· the Note holder may convert his or her Note into shares of the Company’s common stock (at ninety percent (90%) of the average closing price ten (10) days prior to conversion, unless a public offering is pending at the time of the conversion notice, which would result in the conversion price being the same price as the offering).The conversion price is subject to a floor of one dollar ($1 USD) per share;

· the Note holder has the right to redeem the Note for a period of sixty (60) days following the eighteen (18) month anniversary of the issuance of the Note, unless a capital raise is conducted within eighteen (18) months after the issuance of the Note.

The securities were issued pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933.

On August 2, 2013, the Company entered into a Binding Letter of Intent with West End Wings Limited and Manchester Wings Limited (the “Seller”) for the purchase of the Nottingham, England Hooters restaurant location for a total purchase price of three million one hundred and fifty thousand dollars ($3,150,000).  The closing is contingent upon the completion of a full and accurate audit, and is expected to occur the earlier of the completion of the audit or October 31, 2013. With the signing of the Binding Letter of Intent, Chanticleer provided the Seller with a $200,000 deposit towards the purchase consideration. As part of this transaction, all franchise rights to the location will be transferred to the Company.

17. RESIGNATION OF SOUTH AFRICAN CHIEF FINANCIAL OFFICER

On September 7, 2012, the audit committee of Chanticleer Holdings, Inc. (the “Company”), upon recommendation of the Company’s management determined that the Company’s Consolidated Financial Statements for its fiscal year ended December 31, 2011 as originally filed in the Form 10-K could no longer be relied on. The Company determined that the Financial Statements of Kiarabrite (Pty) Ltd., Dimaflo (Pty) Ltd., Tundraspex (Pty) Ltd., Civisign (Pty) Ltd., Dimalogix (Pty) Ltd., and Chanticleer & Shaw Foods (Pty.) Ltd. (collectively referred to as the “South Africa Operations”) which are the South African management company and the four entities organized for the stores we operate in South Africa and the company that owns the HOA franchise rights for the territory of South Africa, were not audited as the Company was led to believe. Accordingly, this Amendment is being filed to include the report of the independent registered public accounting firm responsible for performing the audit of our South Africa Operations.

On September 7, 2012, the Company’s South African Chief Financial Officer (“SA CFO”) resigned. It was determined that the SA CFO had committed certain illegal acts, fraud and certain misrepresentations of facts. Due to the SA CFO’s actions, certain taxes were not paid. In addition, the applicable tax forms were not filed during the proper periods. The Company has engaged tax experts to assist in the tax process. The Company also discovered approximately $128,000 (net of repayments of approximately $57,000) and approximately $85,000 (net of repayments of approximately $43,000) of cash that was misappropriated by the SA CFO during the periods ended June 30, 2013 and December 31, 2012, respectively (presented as “other receivable” on the Company’s combined balance sheets). As of June 30, 2013, approximately $57,000 has been recovered by the Company and payment plans are in place for the remainder.

28

ITEM 2:                   Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

Certain statements contained in this report that are not historical fact are "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. The words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "believes," "estimates," "projects" or similar expressions are intended to identify these forward-looking statements. These statements are subject to risks and uncertainties beyond our reasonable control that could cause our actual business and results of operations to differ materially from those reflected in our forward-looking statements. The safe harbor provisions provided in the Securities Litigation Reform Act do not apply to forward-looking statements we make in this report. Forward-looking statements are not guarantees of future performance. Our forward-looking statements are based on trends which we anticipate in our industry and our good faith estimate of the effect on these trends of such factors as industry capacity, product demand and product pricing. The inclusion of projections and other forward-looking statements should not be regarded a representation by us or any other person that we will realize our projections or that any of the forward-looking statements contained in this prospectus will prove to be accurate.

Management’s Analysis of Business

We have changed our focus recently from managing investments to owning and operating Hooters franchises internationally.  Hooters restaurants are casual beach-themed establishments with sports on television, jukebox music, and the “nearly world famous” Hooters Girls.  The menu consists of spicy chicken wings, seafood, sandwiches and salads.  Each locations menu can vary with the tastes of the locality it is in.  Hooters began in 1983 with its first restaurant in Clearwater, Florida. From the original restaurant and licensee Mr. Robert Brooks, Hooters has become a global brand, with locations in 44 states domestically and over 430 Hooters restaurants worldwide. Besides restaurants, Hooters has also branched out to other areas, including licensing its name to a golf tour and the sale of packaged food in supermarkets.

We expect to either own 100% of the Hooters franchise or partner with a local franchisee in the countries we target.   We based this decision on what we believe to be the successful launch of our South African Hooters venture and believe we have aligned partners and operators in various international markets. We are focused on expanding our Hooters operations, and expect to use substantially all of our capital in South Africa, Brazil, Hungary, Australia and Europe.

Accordingly, we operate in two business segments; Hooters franchise restaurants and our legacy investment management which we exited from on May 1 of this year and consulting services businesses.

LIQUIDITY AND CAPITAL RESOURCES AND GOING CONCERN

Historical information:

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. At June 30, 2013, the Company had current assets of $3,670,833, current liabilities of $4,602,935, and a working capital deficit of $932,102. The Company incurred a loss of $1,444,777 during the six months ended June 30, 2013 and had an unrealized loss from available-for-sale securities of $36,966 and foreign currency translation gains of $54,916, resulting in a comprehensive loss of $1,426,827.

The Company's corporate general and administrative expenses averaged approximately $675,000 per quarter in the first six months of 2013 and averaged approximately $650,000 per quarter during 2012. The Company expects costs to increase as we expand our footprint internationally in 2013. In March 2013, the Company closed its investment management business, which we believe will save us approximately $50,000 per quarter starting fully in the third quarter of 2013. Effective October 1, 2011, the Company acquired majority control of the restaurants in South Africa and began consolidating these operations. In August 2012, the Company opened a restaurant in Budapest, Hungary, and shares 80% of the profits. The Company also shares 49% of the profits in our Hooters location opened in January 2012 in Campbelltown, Australia, a suburb of Sydney.

29

In addition, the Company has a note with a balance at June 30, 2013 of $232,141 owed to its bank which is due on August 10, 2013 and is currently being renegotiated for an extension. In April 2013, the Company secured a $500,000 line of credit which is due in April 2014. As of June 30, 2013, the balance on the line of credit is $342,000. The Company also has $2,750,000 of advances from investors and corresponding restricted cash as of June 30, 2013, which is earmarked for our purchase of the Hooters Nottingham (United Kingdom) purchase.On August 2, 2013, the Company entered into an agreement with seven individual accredited investors, whereby the Company issued separate 6% Secured Subordinate Convertible Notes for a total of three million dollars ($3,000,000) in a private offering. The funding from the private offering is being used exclusively for the acquisition of the Nottingham, England Hooters restaurant location (complete details of the transaction are included in the Company’s Form 8-K filed with the Securities and Exchange Commission on August 5, 2013). The Company’s South African subsidiaries have bank overdraft and term facilities of $210,814. The Company plans to continue to use limited partnerships or other financing vehicles, if necessary, to fund its share of costs for additional Hooters restaurants.

On January 31, 2013, the Company settled outstanding liabilities of approximately $170,000 from a South African bank, previously presented in our consolidated balance sheets in “other liabilities”. Upon making a payment of approximately $99,000, the Company received a release from all other bank liabilities, resulting in a total gain on extinguishment of debt of approximately $71,000, which is presented in our financials as other income.

The Company expects to meet its obligations in 2013 with some or all of the following:

· The Company received $100,000 in January 2013 as a fee for its CEO to be a board member of Hooters of America and expects to continue to receive this fee for the next three years based on the current agreement;

· Borrow, if and to the extent available, additional funds;

· Form joint ventures or other financing vehicles.

If the above events do not occur or if the Company does not raise sufficient capital, substantial doubt about the Company’s ability to continue as a going concern exists. These consolidated financial statements do not reflect any adjustments that might result from the outcome of these uncertainties.

Evaluation of the amounts and certainty of cash flows:

The Company has used short-term financing to meet the preliminary requirements of its planned expansion, principally in South Africa, Europe and Australia. If the Company is unable to obtain necessary additional funding, the Company would be required to limit its expansion plans. We would use limited partner funding and other sources of capital to the extent necessary to attempt to fund as much of the planned expansion as possible. There can be no assurance that any of this funding will be available when needed.

Cash requirements and capital expenditures:

In 2013, we expect to open or acquire one restaurant in each of the following countries or continents – Australia, Brazil, Europe and South Africa. The Company expects the total cash requirements for these restaurants to be approximately $5.0 million, of which approximately $700,000 has been paid as of June 30, 2013.

In addition, we expect general and administrative expenses to be approximately $2.6-$2.8 million for 2013.

30

Discussion and analysis of known trends and uncertainties:

The World economy has been in a state of flux for some time with the debt problems of a number of countries in Europe, the recent recession in the United States, the significant increase to debt in the United States compounded by continuing to give away more than can reasonably be collected, the slowing economy in China and other factors. It is impossible to forecast what this will mean to our expansion plans in South Africa, Brazil, Australia, Poland and Hungary. We feel that we minimize our risks through investment in different geographical areas.

Expected changes in the mix and relative cost of capital resources:

Since the middle of 2010, the Company has utilized high cost capital to finance its international growth. The Company hopes to eliminate the majority of this debt with new equity and further, to use this equity to complete its expansion plans over the next two years. The Company has recently secured additional convertible debt for the purchase of a Hooters restaurant in Nottingham, England, and may use convertible debt in the future.

Other prospective sources for and uses of cash:

If the Company is unable to obtain sufficient funding, it will seek other sources of interim funding to maintain its current operations and complete the restaurants already underway.

If the above events do not occur or the Company is unable to develop its business model, substantial doubt about the Company's ability to continue as a going concern exists.

RESULTS OF OPERATIONS

Comparison of three months ended June 30, 2013 and 2012

Revenue

Revenue amounted to $1,666,043 for the three months ended June 30, 2013 and $1,721,123 for the three months ended June 30, 2012.

Restaurant sales, net for our four locations in South Africa amounted to $1,427,140 in the three months ended June 30, 2013 and $1,696,123 for the three months ended June 30, 2012. The decline in revenue of approximately 16% is primarily attributable to a decline of approximately 16% in the local currency exchange rate from the prior period. Restaurant sales, net for our Budapest location amounted to $213,903 in the three months ended June 30, 2013 and was not opened until August 2012.

Revenues for the management business for the three months ended June 30, 2013 and June 30, 2012, amounted to $25,000 in each period, respectively.

Restaurant cost of sales

Restaurant cost of sales amounted to $635,348, or 38.7% of restaurant net sales for the three months ended June 30, 2013 and $709,612, or 41.8% of restaurant net sales for the three months ended June 30, 2012. We expect the percentage to remain approximately the same in 2013 as we expand our business internationally.

Restaurant operating expenses

Restaurant operating expenses amounted to $932,251, or 56.9% of restaurant net sales for the three months ended June 30, 2013 and $923,290, or 54.4% of restaurant net sales for the three months ended June 30, 2012. We expect the percentage of operating expenses to restaurant net sales to decline as we open more Hooters locations, however we have a limited history to be able to forecast a range.

Restaurant pre-opening expenses

Restaurant pre-opening expenses amounted to $10,201 and $23,499 incurred for the opening of our next planned South African location and the opening of our location at the Emperor’s Palace Casino in Johannesburg, South Africa in February 2012, respectively.

31

General and Administrative Expense (“G&A”)

G&A amounted to $621,070 for the three months ended June 30, 2013 and $610,754 for the three months ended June 30, 2012. The more significant components of G&A are summarized as follows:

	2013		2012
Professional fees	$	128,403	$	58,386
Payroll and benefits		206,954		164,477
Consulting and investor relation fees		124,953		153,046
Travel and entertainment		41,611		74,928
Shareholder services and fees		12,593		6,397
Other G&A		106,556		153,520
	$	621,070	$	610,754

G&A costs are expected to range from $600-$700,000 per quarter for the remainder of 2013, with the costs associated with the activities of the restaurant business continuing to grow. Revenue from the restaurants is expected to exceed this increase in expense.

Professional fees increased $70,017 as a result of the Company expanding it’s operations both domestically and internationally.

Payroll and benefits increased $42,477 from 2013 from 2012 primarily from the addition of restaurant management personnel in Hungary in the third quarter of 2012 and additional corporate staff in our head office.

Consulting and investor relations fees decreased $28,093 from 2013 to 2012 as the Company engaged experienced personnel in 2012 to startup our European subsidiary and Brazil operations and to increase the Company’s recognition in the investment arena. Non-cash fees for services were $1,929 and $9,406 in 2013 and 2012, respectively. Non-cash amortization of warrant expense for services were $37,310 and $25,910 in 2013 and 2012, respectively.

Travel and entertainment decreased $33,317 from 2013 to 2012 as Company personnel, primarily the CEO, had traveled extensively in the second quarter of 2012 to increase our company awareness and lockdown financing and partners for the restaurant locales.

Depreciation and amortization

Depreciation expense for the three months ended June 30, 2013 and 2012 amounted to $124,478 and $82,669, respectively. The restaurant segment for the three months ended June 30, 2013 and 2012 amounted to $123,393 and 80,334, respectively, and the management business amounted to $1,085 and $2,335, respectively.

Amortization expense for the three months ended June 30, 2013 and 2012 for the restaurant businesses related to franchise fees was $5,398 and $4,492, respectively.

32

OTHER INCOME (EXPENSE)

Other income (expense) consisted of the following at June 30, 2013 and 2012:

	2013			2012
Other income (expense):
Equity in losses of investments	$	(18,806	)	$	(33,348	)
Interest expense		(18,442	)		(208,102	)
Miscellaneous income		1,263			-
	$	(35,985	)	$	(241,450	)

Equity in Earnings of Investments

Equity in earnings of investments includes our share of earnings from investments in which we own at least 20% and are being accounted for using the equity method. This included losses from the Hoot Campbelltown partnership in the three months ended June 30, 2013 and 2012 of $18,806 and $33,348, respectively.

Interest Expense

Interest expense decreased by $189,660 in 2013 from 2012, due to the payoff of primarily all our prior debt with the completion of our secondary raise in June 2012. Interest expense will increase during the remainder of 2013 as the Company has taken on new debt to finance expansion.

Income (loss) from discontinued operations

Loss from discontinued operations was $24,578 and $38,660 for the three months ended June 30, 2013 and June 30, 2012, respectively. The primary reason for the decrease in loss was the exiting of the management business during late in the first quarter of 2013, therefore a full quarter of expenses was not incurred during the second quarter of 2013.

Comparison of six months ended June 30, 2013 and 2012

Revenue

Revenue amounted to $3,333,165 for the six months ended June 30, 2013 and $3,133,618 for the six months ended June 30, 2012.

Restaurant sales, net for our four locations in South Africa amounted to $2,863,177 for the six months ended June 30, 2013 and $3,083,618 for the six months ended June 30, 2012. The decline in revenue of approximately 7% is primarily attributable to a decline of approximately 16% in the local currency exchange rate from the prior period, offset by an increase in local currency of approximately 9%. Restaurant sales, net for our Budapest location amounted to $419,988 in the six months ended June 30, 2013 and was not opened until August 2012.

Revenues for the management business for the six months ended June 30, 2013 and June 30, 2012, amounted to $50,000 in each period, respectively.

Restaurant cost of sales

Restaurant cost of sales amounted to $1,263,236, or 38.5% of restaurant net sales for the six months ended June 30, 2013 and $1,291,163, or 41.9% of restaurant net sales for the six months ended June 30, 2012. We expect the percentage to remain approximately the same in 2013 as we expand our business internationally.

33

Restaurant operating expenses

Restaurant operating expenses amounted to $1,912,405, or 58.2% of restaurant net sales for the six months ended June 30, 2013 and $1,692,622, or 54.9% of restaurant net sales for the six months ended June 30, 2012. We expect the percentage of operating expenses to restaurant net sales to decline as we open more Hooters locations, however we have a limited history to be able to forecast a range.

Restaurant pre-opening expenses

Restaurant pre-opening expenses amounted to $10,201 and $64,220 incurred for the opening of our next planned South African location and the opening of our location at the Emperor’s Palace Casino in Johannesburg, South Africa in February 2012, respectively.

General and Administrative Expense (“G&A”)

G&A amounted to $1,350,737 for the six months ended June 30, 2013 and $1,060,412 for the six months ended June 30, 2012. The more significant components of G&A are summarized as follows:

	2013		2012
Professional fees	$	336,536	$	160,996
Payroll and benefits		442,645		312,941
Consulting and investor relation fees		278,286		271,643
Travel and entertainment		58,709		116,589
Shareholder services and fees		34,756		6,509
Other G&A		199,805		191,734
	$	1,350,737	$	1,060,412

G&A costs are expected to range from $600-$700,000 per quarter for the remainder of 2013, with the costs associated with the activities of the restaurant business continuing to grow. Revenue from the restaurants is expected to exceed this increase in expense.

Professional fees increased $175,540 as a result of the Company expanding it’s operations both domestically and internationally.

Payroll and benefits increased $129,704 from 2013 from 2012 primarily from the addition of restaurant management personnel in Hungary in the third quarter of 2012 and additional corporate staff in our head office.

Consulting and investor relations fees increased $6,643 from 2013 to 2012 as the Company engaged experienced personnel to startup our European subsidiary and Brazil operations and to increase the Company’s recognition in the investment arena. Non-cash fees for services were $2,576 and $9,406 in 2013 and 2012, respectively. Non-cash amortization of warrant expense for services were $63,220 and $26,745 in 2013 and 2012, respectively.

Travel and entertainment decreased $57,880 from 2013 to 2012 as Company personnel, primarily the CEO, had traveled extensively in the first quarter of 2012 to increase our company awareness and lockdown financing and partners for the restaurant locales.

Depreciation and amortization

Depreciation expense for the six months ended June 30, 2013 and 2012 amounted to $233,569 and $158,934, respectively. The restaurant segment for the six months ended June 30, 2013 and 2012 amounted to $230,294 and 154,409, respectively, and the management business amounted to $3,275 and $4,525, respectively.

34

Amortization expense for the six months ended June 30, 2013 and 2012 for the restaurant businesses related to franchise fees was $10,531 and $8,251, respectively.

OTHER INCOME (EXPENSE)

Other income (expense) consisted of the following at June 30, 2013 and 2012:

	2013			2012
Other income (expense):
Equity in losses of investments	$	(33,053	)	$	(43,886	)
Gain on extinguishment of debt		70,900			-
Interest expense		(55,386	)		(393,212	)
Miscellaneous income		3,825			-
	$	(13,714	)	$	(437,098	)

Equity in Earnings of Investments

Equity in earnings of investments includes our share of earnings from investments in which we own at least 20% and are being accounted for using the equity method. This included losses from the Hoot Campbelltown partnership in the six months ended June 30, 2013 and 2012 of $33,053 and $43,886, respectively.

Gain on extinguishment of debt

Gain on extinguishment of debt of $70,900 was recorded upon settlement of certain debts related to our South African subsidiary.

Interest Expense

Interest expense decreased by $337,826 in 2013 from 2012, due to the payoff of primarily all our prior debt with the completion of our secondary raise in June 2012. Interest expense will increase during the remainder of 2013 as the Company has taken on new debt to finance expansion.

Income (loss) from discontinued operations

Loss from discontinued operations was $15,111 and $100,523 for the six months ended June 30, 2013 and June 30, 2012, respectively. The primary reasons for the decrease in loss was management fee income earned of $61,793 for the six months ended was June 30, 2013 compared to $6,698 for the six months ended June 30, 2012, and the exiting of the management business during late in the first quarter of 2013, therefore a full quarter of expenses was not incurred during the second quarter of 2013.

Item 3: QUANTITATIVE and QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

Item 4: Controls and Procedures

Evaluation of disclosure controls and procedures

Under the PCAOB standards, a control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit the attention by those responsible for oversight of the company's financial reporting. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.

35

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), as of June 30, 2013. Our management has determined that, as of June 30, 2013, the Company's disclosure controls and procedures were not effective.

Management's report on internal control over financial reporting

Management Responsibility for ICOFR. Management is responsible for establishing and maintaining effective internal control over financial reporting, as defined in Rule 13a-15(f) under the Exchange Act. The Company's internal control over financial reporting is designed to provide reasonable assurance to the Company's management and Board of Directors regarding the preparation and fair presentation of published financial statements in accordance with the United States' generally accepted accounting principles (US GAAP), including those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with US GAAP and that receipts and expenditures are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Management’s Evaluation of ICOFR. Management evaluated our internal control over financial reporting as of June 30, 2013. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control — Integrated Framework. As a result of this assessment and based on the criteria in this framework, management has concluded that, as of June 30, 2013, our internal control over financial reporting was not effective due to material weaknesses in our Company’s South African subsidiaries.

In September 2012, the Company’s management became aware that the financial statements of the Company’s South African subsidiaries for the fiscal year ending December 31, 2011, had not been audited. On September 7, 2012, the Company’s chief financial officer of the South African subsidiaries resigned. The Company initiated an investigation of the circumstances surrounding the foregoing in October 2012, led by the Audit Committee. The Audit Committee engaged independent legal counsel and a certified public accounting firm to consult the Audit Committee in connection with the investigation. Among other findings, the investigation discovered that the chief financial officer of the South African subsidiaries had misappropriated approximately $128,000 of cash from the entities between October 2011 and the date of his resignation. The Audit Committee determined the following material weaknesses existed in its South African subsidiaries, which enabled the foregoing events to occur: (i) insufficient financial and accounting personnel; (ii) failure to segregate duties within the financial and accounting functions; (iii) failure to adopt and implement written policies and procedures with respect to the financial and accounting functions.

Changes in Internal Control over Financial Reporting

As a result of the investigation into the Company’s South African subsidiaries financial and accounting functions as set forth above, the Audit Committee made several recommendations to the Board to address the identified material weaknesses in Company’s internal control over financial reporting. During the fourth quarter of 2012, the Company implemented the following changes to its internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting: (i) hired a new chief financial officer for its South African subsidiaries; (ii) hired an in-house general counsel; (iii) improved its segregation of duties; and (iv) adopted and implemented new written policies and procedures for accounting and financial reporting, including, but not limited to, policies and procedures related to: (a) documentation and testing; (b) data validation from the Company’s systems into its general ledger; (c) testing of systems; (d) validation of results; (e) disclosure review; and (f) other analytics.

36

PART II – OTHER INFORMATION

ITEM 1: LEGAL PROCEEDINGS

Not applicable.

ITEM 1A: RISK FACTORS

Not applicable.

ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3: DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4: MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5: OTHER INFORMATION

None.

ITEM 6: EXHIBITS

The following exhibits are filed with this report on Form 10-Q.

Exhibit 31.1	Certification pursuant to 18 U.S.C. Section 1350 Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2	Certification pursuant to 18 U.S.C. Section 1350 Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1	Certification pursuant to 18 U.S.C. Section 1350 Section 906 of the Sarbanes-Oxley Act of 2002
Exhibit 32.2	Certification pursuant to 18 U.S.C. Section 1350 Section 906 of the Sarbanes-Oxley Act of 2002

37

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		CHANTICLEER HOLDINGS, INC.
Date:     August 12, 2013	By:	/s/ Michael D. Pruitt
		Michael D. Pruitt,
		Chief Executive Officer
		/s/ Eric S. Lederer
		Eric S. Lederer
		Chief Financial Officer
		Principal Accounting Officer

38

EX-31.1

Exhibit 31.1

CHANTICLEER HOLDINGS, INC. FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2013

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael D. Pruitt, certify that:

1. I have reviewed this Report on Form 10-Q of Chanticleer Holdings, Inc. (the registrant);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-a15(f) and 15d-15(f) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the ineffectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the registrant’s current fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and;

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions);

a. All significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls.

August 12, 2013	/s/ Michael D. Pruitt
	Michael D. Pruitt
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CHANTICLEER HOLDINGS, INC. FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2013

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Eric S. Lederer, certify that:

I have reviewed this Report on Form 10-Q of Chanticleer Holdings, Inc. (the registrant);
1.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

2. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

3. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-a15(f) and 15d-15(f) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the ineffectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal controls over financial reporting that occurred during the registrant’s current fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and;

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions);

a. All significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls.

August 12, 2013	/s/ Eric S. Lederer
	Eric S. Lederer
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CHANTICLEER HOLDINGS, INC. FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2013

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael D. Pruitt, certify that:

1. I am the Chief Executive Officer of Chanticleer Holdings, Inc.

2. Attached to this certification is Form 10-Q for the quarter ended June 30, 2013, a periodic report (the “periodic report”) filed by the issuer with the Securities Exchange Commission pursuant to Section 13(a) or 15(d) of the Securities and Exchange Act of 1934 (the “Exchange Act”), which contains financial statements.

3. I hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that

· The periodic report containing the financial statements fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act, and

· The information in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the issuer for the periods presented.

August 12, 2013	/s/ Michael D. Pruitt
	Michael D. Pruitt
	Chief Executive Officer

EX-32.2

Exhibit 32.2

CHANTICLEER HOLDINGS, INC. FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2013

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Eric S. Lederer, certify that:

1. I am the Chief Financial Officer of Chanticleer Holdings, Inc.

2. Attached to this certification is Form 10-Q for the quarter ended June 30, 2013, a periodic report (the “periodic report”) filed by the issuer with the Securities Exchange Commission pursuant to Section 13(a) or 15(d) of the Securities and Exchange Act of 1934 (the “Exchange Act”), which contains financial statements.

3. I hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that

· The periodic report containing the financial statements fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act, and

· The information in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the issuer for the periods presented.

August 12, 2013	/s/ Eric S. Lederer
	Eric S. Lederer
	Chief Financial Officer

XML

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

12. 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, 2013 and December 31, 2012 are as follows:

	2013		2012
Hoot SA I, LLC	$	12,191	$	12,191
Chanticleer Investors, LLC		1,542		1,542
	$	13,733	$	13,733

Due from related parties

The Company has earned income from and made advances to related parties. The amounts owed to the Company at June 30, 2013 and December 31, 2012 is as follows:

	2013		2012
Chanticleer Dividend Fund, Inc.	$	69,281	$	74,281
Hoot SA II, III, IV LLC		44,467		43,618
	$	113,748	$	117,899

Chanticleer Investors LLC

Investors LLC collected its note receivable and reinvested $3,550,000 in HOA LLC (See Note 4). There was no management income from Investors LLC in the three and six months ended June 30, 2013 or 2012.

Chanticleer Investors II LLC

The Company manages Investors II and earned management income in the three and six months ended June 30, 2013 of zero and $61,793, respectively and $6,698 and zero in the three and six months ended June 30, 2012, 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. CDF continues to look for opportunities to use the entity, including for growth capital in the restaurant industry.

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.

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.

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 until payout. As of June 30, 2013, 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.

XML

INTANGIBLE ASSETS, NET (Details Textual) (USD $)	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Franchise Agreement Expected Term	20 years
Goodwill	$ 396,487	$ 396,487
Amortised Franchised Cost	$ 75,000

XML

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenue:
Restaurant sales, net	$ 1,641,043	$ 1,696,123	$ 3,283,165	$ 3,083,618
Management fee income - non-affiliates	25,000	25,000	50,000	50,000
Total revenue	1,666,043	1,721,123	3,333,165	3,133,618
Expenses:
Restaurant cost of sales	635,348	709,612	1,263,236	1,291,163
Restaurant operating expenses	932,250	923,290	1,912,405	1,692,622
Restaurant pre-opening expenses	10,201	23,499	10,201	64,220
General and administrative expenses	620,668	610,754	1,350,737	1,060,412
Depreciation and amortization	129,876	87,161	244,100	167,185
Total expenses	2,328,343	2,354,316	4,780,679	4,275,602
Loss from operations	(662,300)	(633,193)	(1,447,514)	(1,141,984)
Other income (expense)
Equity in losses of investments	(18,806)	(33,348)	(33,053)	(43,886)
Gain on extinguishment of debt			70,900	0
Miscellaneous income	1,263	0	3,825	0
Interest expense	(18,443)	(208,102)	(55,386)	(393,212)
Total other expense	(35,986)	(241,450)	(13,714)	(437,098)
Loss from continuing operations before income taxes	(698,286)	(874,643)	(1,461,228)	(1,579,082)
Provision for income taxes	12,106	0	21,197	0
Loss from continuing operations	(710,392)	(874,643)	(1,482,425)	(1,579,082)
Loss from discontinued operations, net of taxes	(24,980)	(38,660)	(15,111)	(100,523)
Consolidated net loss	(735,372)	(913,303)	(1,497,536)	(1,679,605)
Less: Net loss attributable to non-controlling interest	28,428	69,687	52,759	132,204
Net Income (Loss) Attributable to Parent	(681,964)	(843,616)	(1,444,777)	(1,547,401)
Net loss attributable to Chanticleer Holdings, Inc.:
Loss from continuing operations	(681,964)	(843,616)	(1,444,777)	(1,547,401)
Loss from discontinued operations	(24,980)	(38,660)	(15,111)	(100,523)
Net loss	(681,964)	(843,616)	(1,444,777)	(1,547,401)
Other comprehensive loss:
Unrealized loss on available-for-sale securities (none applies to non-controlling interest)	(13,202)	(132,021)	(36,966)	(237,639)
Foreign translation income	41,400	7,666	54,916	(1,048)
Other comprehensive loss	$ (678,746)	$ (967,971)	$ (1,426,827)	$ (1,786,088)
Net loss per attributable to Chanticleer Holdings, Inc. per common share, basic and diluted:
Continuing operations attributable to common shareholders, basic and diluted (in dollars per share)	$ (0.18)	$ (0.54)	$ (0.39)	$ (0.58)
Discontinued operations attributable to common shareholders, basic and diluted (in dollars per share)	$ (0.01)	$ (0.03)	$ 0.00	$ (0.04)
Income (Loss) from Operations before Extraordinary Items, Per Basic and Diluted Share (in dollars per share)	$ (0.19)	$ (0.56)	$ (0.39)	$ (0.62)
Weighted average shares outstanding, basic and diluted (in shares)	3,701,928	1,502,418	3,700,420	2,498,882

XML

PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

5. PROPERTY AND EQUIPMENT

Property and equipment consists of the following at June 30, 2013 and December 31, 2012:

	2013		2012
Office and computer equipment	$	35,076	$	35,076
Furniture and fixtures		47,686		47,686
Restaurant furnishings and equipment		2,870,946		2,826,760
		2,953,708		2,909,522
Accumulated depreciation		(826,594)		(593,376)
	$	2,127,114	$	2,316,146
Depreciation expense for the three months ended June 30, 2013 and 2012:
Restaurants	$	123,393	$	80,334
Other		1,085		2,335
Total	$	124,478	$	82,669
Depreciation expense for the six months ended June 30, 2013 and 2012:
Restaurants	$	230,294	$	154,409
Other		3,275		4,525
Total	$	233,569	$	158,934

Restaurant furnishings and equipment consists of leasehold improvements, and bar, kitchen and restaurant equipment used in our five locations opened as of June 30, 2013. Restaurant furnishings and equipment includes capital lease assets from three of our South African restaurants of $141,413 with a net book value of $69,573 and $96,230 at June 30, 2013 and December 31, 2012, respectively.

XML

DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

Assets and liabilities from discontinued operations

The Company had assets and liabilities for the periods ended June 30, 2013 and December 31, 2012, which is presented in our balance sheet, as follows:

	June 30,		December 31,
	2013		2012
Cash	$	287	$	24,471
Due from related parties		55,070		19,864
Assets from discontinued operations	$	55,357	$	44,335
Accounts payable	$	9,031	$	14,328
Liabilities from discontinued operations	$	9,031	$	14,328

Net loss from discontinued operations

The Company had a net loss from discontinued operations for the three and six months ended June 30, 2013 and 2012, which is presented in our statements of operations, as follows:

	2013				2012
	Three months ended June 30		Six months ended June 30		Three months ended June 30		Six months ended June 30
Revenues from Chanticleer Investors II, LLC	$	-	$	61,793	$	6,698	$	6,698
Expenses		24,980		76,904		45,358		107,221
Net loss from discontinued operations	$	(24,980)	$	(15,111)	$	(38,660)	$	(100,523)

XML

SEGMENTS OF BUSINESS (Details Textual)	Jun. 30, 2013
Equity Method Investment, Ownership Percentage	49.00%

XML

RESTRICTED CASH AND ADAVANCES FROM INVESTORS (Details Textual) (USD $)	1 Months Ended	6 Months Ended
	Jul. 31, 2013	Jun. 30, 2013	Aug. 02, 2013 Subsequent Event [Member] Secured Subordinate Convertible Notes [Member]
Proceeds From Investors Advances	$ 250,000	$ 2,750,000
Debt Instrument, Face Amount			$ (3,000,000)
Debt Instrument, Interest Rate, Stated Percentage			6.00%

XML

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

XML

INVESTMENTS (Details Textual) (USD $)							1 Months Ended		12 Months Ended	1 Months Ended		3 Months Ended		12 Months Ended	1 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	12 Months Ended	1 Months Ended					12 Months Ended				12 Months Ended
	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Jun. 30, 2013 Hoot Campbelltown Pty Ltd [Member] AUSTRALIA [Member]	Jun. 30, 2013 Hoot Campbelltown [Member] AUSTRALIA [Member]	Jan. 31, 2006 Ee Investors Llc [Member]	Jan. 26, 2006 Ee Investors Llc [Member]	Dec. 31, 2011 North Carolina Natural Energy [Member]	Jun. 30, 2009 North American Energy One [Member]	Jun. 30, 2013 Second Hooters Location [Member] AUSTRALIA [Member]	Jun. 30, 2013 North American Energy Two [Member]	Mar. 31, 2010 North American Energy Two [Member]	Dec. 31, 2012 North American Energy Two [Member]	Jun. 30, 2011 North American Energy Three [Member]	Jun. 30, 2013 North American Energy Three [Member]	Dec. 31, 2012 North American Energy Three [Member]	Jun. 30, 2013 North American Energy Resources [Member]	Dec. 31, 2012 North American Energy Resources [Member]	Jul. 31, 2012 Chanticleer Investors Llc [Member]	Apr. 30, 2011 Chanticleer Investors Llc [Member]	Jan. 31, 2011 Chanticleer Investors Llc [Member]	May 29, 2009 Chanticleer Investors Llc [Member]	May 31, 2009 Chanticleer Investors Llc [Member]	Dec. 31, 2010 Chanticleer Investors Llc [Member]	Dec. 31, 2012 Chanticleer Investors Llc [Member]	Jan. 24, 2011 Chanticleer Investors Llc [Member]	Apr. 18, 2006 Chanticleer Investors Llc [Member]	Dec. 31, 2012 Hoot Surfers Paradise [Member] Hoot Campbelltown Pty Ltd [Member]
Shares Acquired For Management Services									100,000,000				150,000
Share Acquired For Management Services, Cost									$ 1,500				$ 10,500
Maximum Percentage Of Share Diluted, Description									1.00%
Shares Acquired In Exchange Of Property Investments										700,000
Exchange Of Property Investments, Value										126,000
Contibution Of Shares By Ceo															1,790,440
Value Of Shares Contibution By Ceo															125,331
Share Price																		$ 0.007	$ 0.02
Unrealized Loss (Gain) on Securities												9,450		7,350		112,798	87,732	121,100	111,300
Equity Method Investment, Ownership Percentage	49.00%				49.00%	49.00%					49.00%													23.00%		22.00%
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest																													49.00%
General Partner Ownership Interest, Owned By Company Partner																													51.00%
Cost Method Investment, Net Sales Proceeds																							575,000		75,000
Cost Method Investment, Ownership Percentage																								23.00%
Reduction In Cost Method Investment Ownership Percentage																								11.50%
Units Sold, Related Party																												5,000,000
Principal Asset, Convertible Note																												5,000,000
Percentage Of Principal Asset Convertible Into Common Stock																												2.00%
Debt Instrument, Interest Rate, Stated Percentage																												6.00%
Debt Instrument, Maturity Date																					May 24, 2009
Debt Instrument Extended Maturity Date																					Nov. 24, 2010
Debt Instrument Interest Rate Increase Percentage																					8.00%
Acquisition Of Investment																							1,150,000
Notes Receivable, Related Parties																											5,000,000
Management Fee, Description																							Under the original arrangement, the Company received 2% of the 6% interest as a management fee
Management Fee Received (quarterly)																						6,625	25,000
Investment Income, Interest (quarterly)																						11,500	11,500
Investments In Related Party																						3,550,000
Percentage Of Investments In Related Party																						3.10%
Share Investments In Related Party																						500,000
Individual Investor Ownership Amount																						1,750,000
Business Acquisition, Description of Acquired Entity							We acquired 1,205 units (3.378%) in EE Investors, LLC
Payments to Acquire Additional Interest in Subsidiaries																				300,000
Cost Method Investments	$ 1,050,000	$ 1,050,000	$ 1,050,000	$ 766,598				$ 250,000
Investment Interest Rate Percentage																							4.00%

XML

OTHER LIABILITIES (Details) (USD $)	Jun. 30, 2013		Dec. 31, 2012
Bank overdraft facilities (1)	$ 55,936	[1]	$ 254,251	[1]
Term facility (2)	0	[2]	112,950	[2]
Term facility (3)	154,878	[3]	180,445	[3]
Short-term Debt	210,814		547,646
Other liabilities	108,040		186,060
Other current liabilities	$ 102,774		$ 361,586

[1] Bank overdraft facilities have a total maximum facility of approximately $180,000. The interest rate as of June 30, 2013 is 3%. The facilities are reviewed annually and are payable on demand. Concurrently with the January 31, 2013 mentioned in (2) below, the Company was released from a facility totaling $56,529, and a $56,529 gain on settlement of debt was recognized in the first quarter of 2013.

[2] Term facility is payable on demand and the facility is secured by certain assets of one of the Company’s shareholders. After ongoing negotiations between the bank and the Company, on January 31, 2013, $98,579 was paid in full satisfaction of the facility, resulting in a gain on settlement of debt of $14,371 which was recognized in the first quarter of 2013.

[3] The monthly payments of principal and interests of the term facility total approximately $5,000 and have been made for the period from October 1, 2011 through June 2013. The interest rate at June 30, 2013 is 9.5%.

XML

INVESTMENTS (Details) (USD $)	Jun. 30, 2013	Jan. 31, 2013	Dec. 31, 2012
Available-for-sale investments at fair value	$ 263,331	$ 19,983	$ 263,331
Total	$ 19,983	$ 19,983	$ 56,949

XML

INTANGIBLE ASSETS, NET (Tables)

6 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

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

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

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.

XML

PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property and equipment consists of the following at June 30, 2013 and December 31, 2012:

	2013		2012
Office and computer equipment	$	35,076	$	35,076
Furniture and fixtures		47,686		47,686
Restaurant furnishings and equipment		2,870,946		2,826,760
		2,953,708		2,909,522
Accumulated depreciation		(826,594)		(593,376)
	$	2,127,114	$	2,316,146
Depreciation expense for the three months ended June 30, 2013 and 2012:
Restaurants	$	123,393	$	80,334
Other		1,085		2,335
Total	$	124,478	$	82,669
Depreciation expense for the six months ended June 30, 2013 and 2012:
Restaurants	$	230,294	$	154,409
Other		3,275		4,525
Total	$	233,569	$	158,934

XML

INVESTMENTS (Details 8) (USD $)	3 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Investments at cost:
Balance, beginning of year	$ 1,050,000	$ 766,598
Impairment	0	(16,598)
New investments	0	300,000
Total	$ 1,050,000	$ 1,050,000

XML

DISCLOSURES ABOUT FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables according to FASB ASC 820 pricing levels.

	Fair Value Measurement Using
			Quoted prices
			in active		Significant
			markets of		other		Significant
			identical		observable		Unobservable
	Recorded		assets		inputs		Inputs
	value		(Level 1)		(Level 2)		(Level 3)
June 30, 2013
Assets:
Available-for-sale securities	$	19,983	$	18,483	$	1,500	$	-
December 31, 2012
Assets:
Available-for-sale securities	$	56,949	$	55,449	$	1,500	$	-

XML

INVESTMENTS (Details 2) (USD $)	3 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jan. 31, 2013
Cost	$ 263,331	$ 263,331	$ 19,983
Unrecongnized Holding Losses	(243,348)	(206,382)
Fair Value	19,983	56,949	19,983
Realized Holding Loss	0	0
Loss on Sale	0	0
North Carolina Natural Energy [Member]
Cost	1,500	1,500
Unrecongnized Holding Losses	0	0
Fair Value	1,500	1,500
Realized Holding Loss	0	0
Loss on Sale	0	0
North American Energy One [Member]
Cost	126,000	126,000
Unrecongnized Holding Losses	(121,100)	(111,300)
Fair Value	4,900	14,700
Realized Holding Loss	0	0
Loss on Sale	0	0
North American Energy Two [Member]
Cost	10,500	10,500
Unrecongnized Holding Losses	(9,450)	(7,350)
Fair Value	1,050	3,150
Realized Holding Loss	0	0
Loss on Sale	0	0
North American Energy Three [Member]
Cost	125,331	125,331
Unrecongnized Holding Losses	(112,798)	(87,732)
Fair Value	12,533	37,599
Realized Holding Loss	0	0
Loss on Sale	$ 0	$ 0

XML

PROPERTY AND EQUIPMENT (Details) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Property, Plant and Equipment, Gross			$ 2,953,708		$ 2,909,522
Accumulated depreciation			(826,594)		(593,376)
Property and equipment, net			2,127,114		2,316,146
Depreciation	124,478	82,669	233,569	158,934
Other Property [Member]
Depreciation	1,085	2,335	3,275	4,525
Restaurants [Member]
Depreciation	123,393	80,334	230,294	154,409
Office and Computer Equipment [Member]
Property, Plant and Equipment, Gross			35,076		35,076
Furniture and Fixtures [Member]
Property, Plant and Equipment, Gross			47,686		47,686
Restaurant Furnishings and Equipment [Member]
Property, Plant and Equipment, Gross			$ 2,870,946		$ 2,826,760

XML

RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Schedule Of Due To Related Party Transactions, By Related Party [Table Text Block]

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, 2013 and December 31, 2012 are as follows:

	2013		2012
Hoot SA I, LLC	$	12,191	$	12,191
Chanticleer Investors, LLC		1,542		1,542
	$	13,733	$	13,733

Schedule Of Due From Related Party Transactions By Related Party [Table Text Block]

The Company has earned income from and made advances to related parties. The amounts owed to the Company at June 30, 2013 and December 31, 2012 is as follows:

	2013		2012
Chanticleer Dividend Fund, Inc.	$	69,281	$	74,281
Hoot SA II, III, IV LLC		44,467		43,618
	$	113,748	$	117,899

XML

RELATED PARTY TRANSACTIONS (Details 1) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Due from related parties	$ 113,748	$ 117,899
Chanticleer Dividend Fund, Inc [Member]
Due from related parties	69,281	74,281
Hoot SA II and IV, LLC's [Member]
Due from related parties	$ 44,467	$ 43,618

XML

SUBSEQUENT EVENTS (Details Textual) (USD $)	1 Months Ended
	Aug. 31, 2013	Aug. 02, 2013
Number Of Common Stock Warrants Issued		300,000
Class Of Warrant Or Right Term	3 years
Subsequent Event [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights		3.00
Secured Subordinate Convertible Notes Conversion Description	the Note holder may convert his or her Note into shares of the Companys common stock (at ninety percent (90%) of the average closing price ten (10) days prior to conversion, unless a public offering is pending at the time of the conversion notice, which would result in the conversion price being the same price as the offering).The conversion price is subject to a floor of one dollar ($1 USD) per share;
Secured Subordinate Convertible Notes Redemption Description	the Note holder has the right to redeem the Note for a period of sixty (60) days following the eighteen (18) month anniversary of the issuance of the Note, unless a capital raise is conducted within eighteen (18) months after the issuance of the Note.
Business Acquisition Purchase Price Property		3,150,000
Deposit Towards Purchase Of Property		200,000
Subsequent Event [Member] | Secured Subordinate Convertible Notes [Member]
Debt Instrument, Face Amount		(3,000,000)
Debt Instrument, Interest Rate, Stated Percentage		6.00%
Debt Instrument, Term	36 months
Debt Instrument, Description	the Note holders shall receive ten percent (10%), pro rata, of the net profit of the Nottingham, England Hooters restaurant, paid quarterly for the life of the location, and ten percent (10%) of the net proceeds should the location be sold;

XML

RELATED PARTY TRANSACTIONS (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Due to related parties	$ 13,733	$ 13,733
Hoot SA I, LLC [Member]
Due to related parties	12,191	12,191
Chanticleer Investors, LLC [Member]
Due to related parties	$ 1,542	$ 1,542

XML

INVESTMENTS (Details 5) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Equity in losses:
Equity in losses of investments	$ (18,806)	$ (33,348)	$ (33,053)	$ (43,886)	$ (14,803)
Hoot Campbelltown Pty Ltd [Member]
Equity in losses:
Equity in losses of investments	$ (18,806)	$ (33,348)	$ (33,053)	$ (43,886)

XML

COMMITMENTS AND CONTINGENCIES (Details 1) (USD $)	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jun. 30, 2012		Jun. 30, 2013		Jun. 30, 2012
Operating Leases, Rent Expense	$ 172,844		$ 149,146		$ 366,428		$ 286,937
Restaurants [Member]
Operating Leases, Rent Expense	165,047	[1]	142,621	[1]	349,025	[1]	273,887	[1]
Management [Member]
Operating Leases, Rent Expense	$ 7,797	[2]	$ 6,525	[2]	$ 17,403	[2]	$ 13,050	[2]

[1] Included in restaurant operating expenses of the Consolidated Statement of Operations

[2] Included in general and administrative expenses of the Consolidated Statement of Operations

XML

INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

INVESTMENTS AT FAIR VALUE CONSIST OF THE FOLLOWING AT JUNE 30, 2013 AND DECEMBER 31, 2012.

	2013		2012
Available-for-sale investments at fair value	$	19,983	$	56,949
Total	$	19,983	$	56,949

Available-For-Sale Securities Activity [Table Text Block]

Activity in our available-for-sale securities may be summarized as follows:

	2013		2012
Cost at beginning and end of periods	$	263,331	$	263,331
Unrealized loss		(243,348)		(206,382)
Total	$	19,983	$	56,949

Available-for-sale Securities [Table Text Block]

Our available-for-sale securities consist of the following:

			Unrecognized				Realized		Loss
			Holding		Fair		Holding		on
	Cost		Losses		Value		Loss		Sale
June 30, 2013
North Carolina Natural Energy		1,500		-		1,500		-		-
North American Energy		126,000		(121,100)		4,900		-		-
North American Energy		10,500		(9,450)		1,050		-		-
North American Energy		125,331		(112,798)		12,533		-		-
	$	263,331	$	(243,348)	$	19,983	$	-	$	-
December 31, 2012
North Carolina Natural Energy		1,500		-		1,500		-		-
North American Energy		126,000		(111,300)		14,700		-		-
North American Energy		10,500		(7,350)		3,150		-		-
North American Energy		125,331		(87,732)		37,599		-		-
	$	263,331	$	(206,382)	$	56,949	$	-	$	-

Schedule of Other Investments Not Readily Marketable [Table Text Block]

OTHER INVESTMENTS ARE SUMMARIZED AS FOLLOWS AT JUNE 30, 2013 AND DECEMBER 31, 2012.

	2013		2012
Investments accounted for under the equity method	$	933,927	$	1,066,915
Investments accounted for under the cost method		1,050,000		1,050,000
Total	$	1,983,927	$	2,116,915

Schedule of Equity Method Investments [Table Text Block]

Activity in investments accounted for using the equity method is summarized as follows:

	June 30,		December 31,
	2013		2012
Balance, beginning of year	$	1,066,915	$	815,550
Equity in earnings (loss)		(33,053)		(14,803)
Investment fundings (repayments)		(99,935)		409,543
Reclassification of investments		-		(143,375)
Balance, end of period	$	933,927	$	1,066,915

Schedule Of Equity Earnings (Loss) and Distributions [Table Text Block]

Equity investments consist of the following at June 30, 2013 and December 31, 2012:

	2013		2012
Carrying value:
Hoot Campbelltown Pty. Ltd. (49%) - Australia	$	522,278	$	555,331
Second Hooters location (49%) - Australia		411,649		511,584
	$	933,927	$	1,066,915

Equity Investment Losses [Table Text Block]

Equity in losses from equity investments during the three and six months ended June 30, 2013 and 2012 follows:

	2013				2012
	Three Months Ended June 30		Six Months Ended June 30		Three Months Ended June 30		Six Months Ended June 30
Equity in losses:
Hoot Campbelltown (49%)		(18,806)		(33,053)		(33,348)		(43,886)
	$	(18,806)	$	(33,053)	$	(33,348)	$	(43,886)

Schedule Of Equity Method Investment, Summarized Financial Information, Income Statement [Table Text Block]

The summarized financial data below includes the Hoot Campbelltown location in Australia, which we owned 49% of at June 30, 2013:

	2013				2012
	Three Months Ended June 30		Six Months Ended June 30		Three Months Ended June 30		Six Months Ended June 30
Revenue	$	569,838	$	1,204,412	$	767,721	$	1,875,784
Gross profit		465,358		910,254		545,896		1,327,149
Recurring expenses		503,738		977,710		613,952		1,320,099
Pre-opening costs		-		-		-		96,613
Loss from continuing operations		(38,380)		(67,456)		(68,056)		(89,563)
Net loss		(38,380)		(67,456)		(68,056)		(89,563)

Schedule Of Equity Method Investment, Summarized Financial Information, Balance Sheet [Table Text Block]

The summarized balance sheets for the two locations in Australia of which we owned 49% at June 30, 2013 and December 31, 2012 follows:

	June 30,		December 31,
	2013		2012
ASSETS
Current assets	$	171,110	$	604,147
Non-current assets		2,573,144		2,909,276
TOTAL ASSETS	$	2,744,254	$	3,513,423
LIABILITIES
Current liabilities	$	865,022	$	1,057,911
PARTNER'S EQUITY		1,879,232		2,455,512
TOTAL LIABILITIES AND PARTNERS' EQUITY	$	2,744,254	$	3,513,423

Investment [Table Text Block]

A summary of the activity in investments accounted for using the cost method follows.

	June 30,		December 31,
	2013		2012
Investments at cost:
Balance, beginning of year	$	1,050,000	$	766,598
Impairment		-		(16,598)
New investments		-		300,000
Total	$	1,050,000	$	1,050,000

Schedule of Cost Method Investments [Table Text Block]

Investments at cost consist of the following at June 30, 2013 and December 31, 2012:

	2013		2012
Chanticleer Investors, LLC	$	800,000	$	800,000
Edison Nation LLC (FKA Bouncing Brain Productions)		250,000		250,000
	$	1,050,000	$	1,050,000

XML

NATURE OF BUSINESS

6 Months Ended

Jun. 30, 2013

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Nature of Operations [Text Block]

1. Nature of Business

Organization

Chanticleer Holdings, Inc. (the “Company”) was organized October 21, 1999, under its original name, Tulvine Systems, Inc., under the laws of the State of Delaware. The Company previously had limited operations and was considered a development stage company until July 2005. On April 25, 2005, the Company formed a wholly owned subsidiary, Chanticleer Holdings, Inc. On May 2, 2005, Tulvine Systems, Inc. merged with and changed its name to Chanticleer Holdings, Inc.

The consolidated financial statements include the accounts of Chanticleer Holdings, Inc. and its subsidiaries, Chanticleer Advisors, LLC, (“Advisors”), Avenel Ventures, LLC ("Ventures"), Avenel Financial Services, LLC ("AFS"), Chanticleer Holdings Limited ("CHL"), Chanticleer Holdings Australia Pty, Ltd. (“CHA”), Chanticleer Investment Partners, LLC (“CIP”), DineOut SA Ltd. ("DineOut”), Chanticleer and Shaw Foods (Pty) Ltd. (“C&S”), Kiarabrite (Pty) Ltd (“KPL”), Dimaflo (Pty) Ltd (“DFLO”), Tundraspex (Pty) Ltd (“TPL”), Civisign (Pty) Ltd (“CPL”) and Dimalogix (Pty) Ltd (“DLOG”) (collectively referred to as “the Company,” “we,” “us,” or “the Companies”). On July 11, 2013, the names of DFLO, CPL and DLOG were changed in South Africa to Hooters Umhlanga (Pty.) Ltd., Hooters CapeTown (Pty.) Ltd., Hooters Emperors Palace (Pty.) Ltd., respectively. All significant inter-company balances and transactions have been eliminated in consolidation.

Effective May 11, 2012, the Company's common stock was reverse split, 1 share for each 2 shares issued, pursuant to a majority vote of the Company's shareholders. All share references have been adjusted as if the split occurred in all periods presented.

Further detailed information regarding the Company's subsidiaries can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

GENERAL

The accompanying condensed consolidated financial statements included in this report have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting and include all adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation. These condensed consolidated financial statements have not been audited. The results of operations for the three and six months ended June 30, 2013 are not necessarily indicative of the operating results for the full year.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations for interim reporting. The Company believes that the disclosures contained herein are adequate to make the information presented not misleading. However, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report for the year ended December 31, 2012, which is included in the Company’s Form 10-K. Certain amounts for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations.

GOING CONCERN

The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. At June 30, 2013, the Company had current assets of $3,670,833, current liabilities of $4,602,935, and a working capital deficit of $932,102. The Company incurred a loss of $1,444,777 during the six months ended June 30, 2013 and had an unrealized loss from available-for-sale securities of $36,966 and foreign currency translation gains of $54,916, resulting in a comprehensive loss of $1,426,827.

The Company's corporate general and administrative expenses averaged approximately $675,000 per quarter in the first six months of 2013 and averaged approximately $650,000 per quarter during 2012. In March 2013, the Company closed its investment management business. Effective October 1, 2011, the Company acquired majority control of the restaurants in South Africa and began consolidating these operations. In August 2012, the Company opened a restaurant in Budapest, Hungary, and earns 80% of the profits with our operating partner earning 20%. The Company also earns 49% of the profits with our operating partner earning 51% in its Hooters restaurant which was opened in January 2012 in Campbelltown, Australia, a suburb of Sydney. 

In addition, the Company has a note with a balance at June 30, 2013 of $232,194 owed to its bank which is due on August 10, 2013 and is currently being negotiated for an extension. In April 2013, the Company secured a $500,000 line of credit which is due in April 2014. As of June 30, 2013 the balance on the line of credit is $342,000.

The Company also has $2,750,000 of advances from investors and corresponding restricted cash as of June 30, 2013, which is earmarked for our purchase of the Hooters Nottingham (United Kingdom) purchase.On August 2, 2013, the Company entered into an agreement with seven individual accredited investors, whereby the Company issued separate 6% Secured Subordinate Convertible Notes for a total of three million dollars ($3,000,000) in a private offering. The funding from the private offering is being used exclusively for the acquisition of the Nottingham, England Hooters restaurant location (complete details of the transaction are included in the Company’s Form 8-K filed with the Securities and Exchange Commission on August 5, 2013). See Note 16, “Subsequent Events”, for further information.

The Company’s South African subsidiaries have bank overdraft and term facilities of $210,814. The Company plans to continue to use limited partnerships or other financing vehicles, if necessary, to fund its share of costs for additional Hooters restaurants.

On January 31, 2013, the Company settled outstanding liabilities of approximately $170,000 from a South African bank, previously presented in our consolidated balance sheets in “other liabilities.” Upon making a payment of approximately $99,000, the Company received a release from all other bank liabilities, resulting in a total gain on extinguishment of debt of approximately $71,000, which is presented in our financials as other income.

The Company expects to meet its obligations in 2013 with some or all of the following:

⋅ The Company received $100,000 in January 2013 as a fee for its CEO to be a board member of Hooters of America and expects to continue to receive this fee for the next three years based on the current agreement;

⋅ Borrow, if and to the extent available, additional funds;

⋅ Form joint ventures or other financing vehicles.

There is no assurance that these events will occur or the Company will be able to raise sufficient capital. Therefore, substantial doubt about the Company’s ability to continue as a going concern exists. These consolidated financial statements do not reflect any adjustments that might result from the outcome of these uncertainties.

XML

DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. DISCONTINUED OPERATIONS

The Company closed their investment management business on May 1, 2013. A summary of the activity is presented below. 

Assets and liabilities from discontinued operations

The Company had assets and liabilities for the periods ended June 30, 2013 and December 31, 2012, which is presented in our balance sheet, as follows:

	June 30,		December 31,
	2013		2012
Cash	$	287	$	24,471
Due from related parties		55,070		19,864
Assets from discontinued operations	$	55,357	$	44,335
Accounts payable	$	9,031	$	14,328
Liabilities from discontinued operations	$	9,031	$	14,328

Net loss from discontinued operations

The Company had a net loss from discontinued operations for the three and six months ended June 30, 2013 and 2012, which is presented in our statements of operations, as follows:

	2013				2012
	Three months ended June 30		Six months ended June 30		Three months ended June 30		Six months ended June 30
Revenues from Chanticleer Investors II, LLC	$	-	$	61,793	$	6,698	$	6,698
Expenses		24,980		76,904		45,358		107,221
Net loss from discontinued operations	$	(24,980)	$	(15,111)	$	(38,660)	$	(100,523)

Chanticleer Investors II - Chanticleer Advisors, LLC (“Advisors”) acts as the managing general partner and receives a management fee based on a percentage of profits. On March 22, 2013, Chanticleer Holdings, Inc. announced its intention to exit the fund management business, which was effectuated May 1, 2013. Advisors resigned as manager of Chanticleer Investors II (“Investors”). Matthew Miller and Joe Koster, two of the prior fund managers, ceased to be employed by Advisors and now 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 resulted in operating losses since inception.

Chanticleer Investment Partners, LLC - Chanticleer Investment Partners, LLC (“CIPs”) was formed as a wholly owned North Carolina limited liability company on September 20, 2011. CIP was formed to manage separate and customized investment accounts for investors. The Company has registered CIP as a registered investment advisor so that it can market openly to the public. In March 2013 the Company decided to exit this business and on April 26, 2013 CIP’s status as a registered investment advisor was terminated.

XML

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.

XML

RESIGNATION OF SOUTH AFRICAN CHIEF FINANCIAL OFFICER (Details Textual) (USD $)	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Other receivable	$ 70,907	$ 85,473
Chief Financial Officer [Member]
Other receivable	128,000	85,000
Amount Recovered From Cfo	57,000	43,000
Net Repayments Of Misappropriations Of Cash	$ 57,000

XML

INVESTMENTS

6 Months Ended

Jun. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

4. INVESTMENTS

INVESTMENTS AT FAIR VALUE CONSIST OF THE FOLLOWING AT JUNE 30, 2013 AND DECEMBER 31, 2012.

	2013		2012
Available-for-sale investments at fair value	$	19,983	$	56,949
Total	$	19,983	$	56,949

AVAILABLE-FOR-SALE SECURITIES

Activity in our available-for-sale securities may be summarized as follows:

	2013		2012
Cost at beginning and end of periods	$	263,331	$	263,331
Unrealized loss		(243,348)		(206,382)
Total	$	19,983	$	56,949

Our available-for-sale securities consist of the following:

			Unrecognized				Realized		Loss
			Holding		Fair		Holding		on
	Cost		Losses		Value		Loss		Sale
June 30, 2013
North Carolina Natural Energy		1,500		-		1,500		-		-
North American Energy		126,000		(121,100)		4,900		-		-
North American Energy		10,500		(9,450)		1,050		-		-
North American Energy		125,331		(112,798)		12,533		-		-
	$	263,331	$	(243,348)	$	19,983	$	-	$	-
December 31, 2012
North Carolina Natural Energy		1,500		-		1,500		-		-
North American Energy		126,000		(111,300)		14,700		-		-
North American Energy		10,500		(7,350)		3,150		-		-
North American Energy		125,331		(87,732)		37,599		-		-
	$	263,331	$	(206,382)	$	56,949	$	-	$	-

North Carolina Natural Energy, Inc. (“NCNE”) – NCNE is a successor to Remodel Auction Incorporated whose business was discontinued. NCNE has plans to become involved in some form of natural energy. The Company received 100,000,000 shares of NCNE (less than 1% on a fully diluted basis) for management services during 2011. The shares were valued at $1,500 based on NCNE’s valuation as a shell.

North American Energy Resources, Inc. - During the quarter ended June 30, 2009, the Company exchanged its oil & gas property investments for 700,000 shares of North American Energy Resources, Inc. ("NAEY") which were valued at $126,000 based on the closing price of NAEY on the date of the trade. At June 30, 2013 and December 31, 2012, the stock was $0.007 and $0.02 per share, respectively, and the Company recorded an unrealized loss of $121,100 and $111,300, respectively, based on the Company's determination that the price decline was temporary.

During the first quarter of 2010, the Company received an additional 150,000 shares of NAEY in exchange for management services. The shares were initially valued at $10,500, based on the trading price at the time. At June 30, 2013 and December 31, 2012, the Company recorded an unrealized loss of $9,450 and $7,350, respectively, based on the market value at the time.

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. At June 30, 2013 and December 31, 2012, the Company recorded an unrealized loss of $112,798 and $87,732, respectively, based on the market value of the securities.

NAEY appointed a new management team in December 2010 and they are seeking acquisition opportunities for onshore and offshore oil and gas properties. Accordingly, the Company determined that any decline was temporary.

OTHER INVESTMENTS ARE SUMMARIZED AS FOLLOWS AT JUNE 30, 2013 AND DECEMBER 31, 2012.

	2013		2012
Investments accounted for under the equity method	$	933,927	$	1,066,915
Investments accounted for under the cost method		1,050,000		1,050,000
Total	$	1,983,927	$	2,116,915

INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Activity in investments accounted for using the equity method is summarized as follows:

	June 30,		December 31,
	2013		2012
Balance, beginning of year	$	1,066,915	$	815,550
Equity in earnings (loss)		(33,053)		(14,803)
Investment fundings (repayments)		(99,935)		409,543
Reclassification of investments		-		(143,375)
Balance, end of period	$	933,927	$	1,066,915

Equity investments consist of the following at June 30, 2013 and December 31, 2012:

	2013		2012
Carrying value:
Hoot Campbelltown Pty. Ltd. (49%) - Australia	$	522,278	$	555,331
Second Hooters location (49%) - Australia		411,649		511,584
	$	933,927	$	1,066,915

Equity in losses from equity investments during the three and six months ended June 30, 2013 and 2012 follows:

	2013				2012
	Three Months Ended June 30		Six Months Ended June 30		Three Months Ended June 30		Six Months Ended June 30
Equity in losses:
Hoot Campbelltown (49%)		(18,806)		(33,053)		(33,348)		(43,886)
	$	(18,806)	$	(33,053)	$	(33,348)	$	(43,886)

The summarized financial data below includes the Hoot Campbelltown location in Australia, which we owned 49% of at June 30, 2013:

	2013				2012
	Three Months Ended June 30		Six Months Ended June 30		Three Months Ended June 30		Six Months Ended June 30
Revenue	$	569,838	$	1,204,412	$	767,721	$	1,875,784
Gross profit		465,358		910,254		545,896		1,327,149
Recurring expenses		503,738		977,710		613,952		1,320,099
Pre-opening costs		-		-		-		96,613
Loss from continuing operations		(38,380)		(67,456)		(68,056)		(89,563)
Net loss		(38,380)		(67,456)		(68,056)		(89,563)

The summarized balance sheets for the two locations in Australia of which we owned 49% at June 30, 2013 and December 31, 2012 follows:

	June 30,		December 31,
	2013		2012
ASSETS
Current assets	$	171,110	$	604,147
Non-current assets		2,573,144		2,909,276
TOTAL ASSETS	$	2,744,254	$	3,513,423
LIABILITIES
Current liabilities	$	865,022	$	1,057,911
PARTNER'S EQUITY		1,879,232		2,455,512
TOTAL LIABILITIES AND PARTNERS' EQUITY	$	2,744,254	$	3,513,423

CHA (Hoot Campbelltown Pty. Ltd and Hoot Surfers Paradise Pty. Ltd.) – CHA entered into a partnership with the current local Hooters franchisee in Australia in which CHA will own 49% and its partner own 51%. The local partner will also manage the restaurants. The first location, Hoot Campbelltown Pty. Ltd. opened in Campbelltown, a suburb of Sydney, in January 2012. A second location in Townsville, is underway with plans to open late in the third quarter or early in the fourth quarter of 2013.

INVESTMENTS ACCOUNTED FOR USING THE COST METHOD

A summary of the activity in investments accounted for using the cost method follows.

	June 30,		December 31,
	2013		2012
Investments at cost:
Balance, beginning of year	$	1,050,000	$	766,598
Impairment		-		(16,598)
New investments		-		300,000
Total	$	1,050,000	$	1,050,000

Investments at cost consist of the following at June 30, 2013 and December 31, 2012:

	2013		2012
Chanticleer Investors, LLC	$	800,000	$	800,000
Edison Nation LLC (FKA Bouncing Brain Productions)		250,000		250,000
	$	1,050,000	$	1,050,000

Chanticleer Investors LLC - The Company sold 1/2 of its investment in Investors LLC in May 2009, which reduced its ownership from 23% to 11.5%. Accordingly, in May 2009, the Company discontinued accounting for this investment using the equity method and began to account for the investment using the cost method. In December 2010, the Company sold an additional $75,000 of its investment at cost.

On April 18, 2006, the Company formed Investors LLC and sold units for $5,000,000. Investors LLC’s principal asset was a convertible note in the amount of $5,000,000 with Hooters of America, Inc. (“HOA”), collateralized by and convertible into 2% of Hooters common stock. The original note included interest at 6% and was due May 24, 2009. The note was extended until November 24, 2010 and included an increase in the interest rate to 8%.

The Company owned $1,150,000 (23%) of Investors LLC until May 29, 2009 when it sold 1/2 of its share for $575,000. Under the original arrangement, the Company received 2% of the 6% interest as a management fee ($25,000 quarterly) and 4% interest on its investment ($11,500 quarterly). Under the extended note and revised operating agreement, the Company received a management fee of $6,625 quarterly and interest income of $11,500 quarterly until it was repaid in January 2011.

On January 24, 2011, Investors LLC and its three partners combined to form HOA Holdings, LLC ("HOA LLC") and completed the acquisition of HOA and Texas Wings, Inc. ("TW"). Together HOA LLC has created an operating company with 161 company-owned locations across sixteen states, or nearly half of all domestic Hooters restaurants and over one-third of the locations worldwide.

Investors, LLC had a note receivable in the amount of $5,000,000 from HOA that was repaid at closing. Investors LLC then invested $3,550,000 in HOA LLC (approximately 3.1%) ($500,000 of which was the Company's share). One of the investors in Investors LLC that owned a $1,750,000 share is a direct investor in HOA LLC and will now carry its ownership in HOA LLC directly. In July 2012, the Company acquired an additional interest of $300,000, at cost, from one of the partners for cash, which increased our ownership to approximately 22% of Investors LLC as of December 31, 2012.

Based on the current status of this investment, the Company does not consider the investment to be impaired.

EE Investors, LLC - On January 26, 2006, we acquired an investment in EE Investors, LLC with cash in the amount of $250,000. We acquired 1,205 units (3.378%) in EE Investors, LLC, whose sole asset is 40% of Edison Nation, LLC (formerly Bouncing Brain Productions, LLC). Edison Nation was formed to provide equity capital for new inventions and help bring them to market. The initial business plan included developing the products and working with manufacturers and marketing organizations to sell the products. This has evolved into a less hands-on program which involves selling products with patents to other larger companies and retaining royalties. Edison Nation has now reached cash flow break-even, and in addition has been retained by a number of companies for which they do product searches to supplement its business. Edison Nation plans to repay the majority of its debt in 2013 and expects to subsequently begin making distributions to its owners. Based on the current status of this investment, the Company does not consider the investment to be impaired.

XML

INVESTMENTS (Details 3) (USD $)	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Investments accounted for under the equity method	$ 933,927	$ 1,066,915	$ 1,066,915	$ 815,550
Investments accounted for under the cost method	1,050,000	1,050,000	1,050,000	766,598
Total	$ 1,983,927		$ 2,116,915

XML

LONG-TERM DEBT AND NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

Long-term debt and notes payable are summarized as follows.

	June 30,		December 31,
	2013		2012
Line of credit to a bank, expires April 10, 2014, interest rate of Wall St. Journal Prime (currently 3.25%) plus 1%, floor rate of 5%.	$	342,000	$	-
Note payable to a bank due in monthly installments of $1,739 including interest at Wall Street Journal Prime + 1% (minimum of 5.5%); remaining balance due August 10, 2013; collateralized by substantially all of the Company's assets and guaranteed by Mr. Pruitt		232,141		236,110
Notes payable and current portion of long-term debt	$	574,141	$	236,110

XML

SEGMENTS OF BUSINESS (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

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

XML

DISCLOSURES ABOUT FAIR VALUE (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Assets:
Available-for-sale securities	$ 19,983	$ 56,949
Fair Value, Inputs, Level 1 [Member]
Assets:
Available-for-sale securities	18,483	55,449
Fair Value, Inputs, Level 2 [Member]
Assets:
Available-for-sale securities	1,500	1,500
Fair Value, Inputs, Level 3 [Member]
Assets:
Available-for-sale securities	$ 0	$ 0

XML

DISCONTINUED OPERATIONS (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Cash	$ 287		$ 287		$ 24,471
Due from related parties	55,070		55,070		19,864
Assets from discontinued operations	55,357		55,357		44,335
Accounts payable	9,031		9,031		14,328
Liabilities from discontinued operations	9,031		9,031		14,328
Revenues from Chanticleer Investors II, LLC	0	6,698	61,793	6,698
Expenses	24,980	45,358	76,904	107,221
Net income (loss) from discontinued operations	$ (24,980)	$ (38,660)	$ (15,111)	$ (100,523)

XML

COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Dec. 31, 2010
Lease Rental Payment		$ 800	$ 2,100
Lease Expiration Date	Jun. 30, 2013
Loss Contingency, Estimated Recovery from Third Party	Rolalor and Labyrinth, be wound up in satisfaction of an alleged debt owed in the total amount of R4,082,636.13 (approximately $442,189). The Company has and will continue to vigorously defend itself in this matter.
Accounts payable and accrued expenses	$ 1,102,633	$ 1,108,305
South African Restaurants [Member]
Lease Term	5 Years
Hungary [Member]
Lease Term	10 Years

XML

LONG-TERM DEBT AND NOTES PAYABLE (Details Textual) (USD $)	6 Months Ended
	Jun. 30, 2013	Apr. 11, 2013	Dec. 31, 2012
Line of Credit Facility, Interest Rate Description	(currently 3.25%) plus 1%, floor rate of 5%.
Line Of Credit Facility Amount Outstanding	$ 342,000	$ 732,000	$ 0
Notes Payable, Current		234,000
Note Payable Expiration Date	Apr. 10, 2014
Credit Agreement [Member]
Line of Credit Facility, Interest Rate Description	Borrowings under the Credit Agreement bear monthly interest at the greater of: (i) floor rate of 5.00% or (ii) the Wall Street Journals prime plus rate (currently 3.25%) plus 1.00%. All unpaid principal and interest are due one (1) year after the Closing Date. Any borrowings are secured by a lien on all of the Companys assets. The obligations under the Credit Agreement are guaranteed by Mike Pruitt, the Companys Chief Executive Officer.
Subsequent Event [Member]
Additional Line Of Credit Facility Revolving Credit	500,000
Notes Payable to Banks [Member]
Line of Credit Facility, Interest Rate Description	Prime + 1% (minimum of 5.5%)
Line of Credit Facility, Periodic Payment	$ 1,739

XML

PROPERTY AND EQUIPMENT (Details Textual) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Capital Leased Assets Net	$ 69,573	$ 96,230
South African Restaurants [Member]
Capital Leased Assets Net	$ 141,413

XML

INVESTMENTS (Details 7) (USD $)	Jun. 30, 2013	Dec. 31, 2012
ASSETS
Current assets	$ 171,110	$ 604,147
Non-current assets	2,573,144	2,909,276
TOTAL ASSETS	2,744,254	3,513,423
LIABILITIES
Current liabilities	865,022	1,057,911
PARTNER'S EQUITY	1,879,232	2,455,512
TOTAL LIABILITIES AND PARTNERS' EQUITY	$ 2,744,254	$ 3,513,423

XML

Condensed Consolidated Balance Sheets [Parenthetical] (USD $)	Jun. 30, 2013	Dec. 31, 2012
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	3,702,896	3,698,896
Common stock, shares outstanding	3,702,896	3,698,896

XML

OTHER LIABILITIES

6 Months Ended

Jun. 30, 2013

Other Liabilities Disclosure [Abstract]

Bank Overdraft and Term Facilities [Text Block]

9. OTHER LIABILITIES

Other liabilities, which consist of bank overdraft and term facilities at June 30, 2013 and December 31, 2012 are associated with the South African Operations and consist of the following:

	June 30,		December 31,
	2013		2012
Bank overdraft facilities (1)	$	55,936	$	254,251
Term facility (2)		-		112,950
Term facility (3)		154,878		180,445
		210,814		547,646
Other liabilities		108,040		361,586
Other current liabilities	$	102,774	$	186,060

During April 2013, the above overdraft facilities and term facilities were renegotiated.

(1) Bank overdraft facilities have a total maximum facility of approximately $180,000. The interest rate as of June 30, 2013 is 3%. The facilities are reviewed annually and are payable on demand. Concurrently with the January 31, 2013 mentioned in (2) below, the Company was released from a facility totaling $56,529, and a $56,529 gain on settlement of debt was recognized in the first quarter of 2013.

(2) Term facility is payable on demand and the facility is secured by certain assets of one of the Company’s shareholders. After ongoing negotiations between the bank and the Company, on January 31, 2013, $98,579 was paid in full satisfaction of the facility, resulting in a gain on settlement of debt of $14,371 which was recognized in the first quarter of 2013.

(3) The monthly payments of principal and interests of the term facility total approximately $5,000 and have been made for the period from October 1, 2011 through June 2013. The interest rate at June 30, 2013 is 9.5%. 

XML

Condensed Consolidated Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net loss	$ (1,482,425)	$ (1,579,082)
Less: net loss from discontinued operations	(15,111)	(100,523)
Net loss from continuing operations	1,497,536	1,679,605
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	244,100	167,185
Equity in losses of investments	33,053	43,886
Amortization of warrants	85,879	72,063
Common stock issued for services	7,720	9,406
Gain on debt extinguishment	(70,900)	0
Decrease (increase) in accounts and other receivables	40,902	(24,010)
(Increase) decrease in prepaid expenses and other assets	(38,411)	84,016
Decrease (increase) in inventory	57,796	(34,934)
Increase in accounts payable and accrued expenses	42,190	561,011
Increase in deferred rent	10,262	31,284
Advance from related parties for working capital	(19,525)	(61,487)
Net cash used in operating activities from continuing operations	(1,104,470)	(831,185)
Net cash (used in) provided by operating activities from discontinued operations	(40,503)	2,552
Net cash used in operating activities	(1,144,973)	(828,633)
Cash flows from investing activities:
Proceeds from non-controlling interests	0	90,000
Purchase (repayments) of investments	95,815	(904,857)
Restricted cash	(2,750,000)	0
Franchise costs	(75,000)	(240,000)
Purchase of property and equipment	(44,186)	(696,839)
Net cash used in investing activities from continuing operations	(2,773,371)	(1,751,696)
Net cash used in investing activities from discontinued operations	0	0
Net cash used in investing activities	(2,773,371)	(1,751,696)
Cash flows from financing activities:
Sale of common stock	0	7,051,464
Loan proceeds, net	342,000	2,915,000
Advances from investors	2,750,000	0
(Decrease) in other liabilities	(265,932)	(25,012)
Loan and capital lease repayments	(25,541)	(3,956,813)
Net cash provided by financing activities from continuing operations	2,800,527	5,984,639
Net cash (used in) provided by financing activities from discontinued operations	0	0
Net cash provided by financing activities	2,800,527	5,984,639
Effect of exchange rate changes on cash	54,564	(1,045)
Net change in cash	(1,063,253)	3,403,265
Cash, beginning of period	1,223,803	144,189
Cash, end of period	160,550	3,547,454
Supplemental cash flow information:
Interest	29,606	191,578
Income taxes	0	0
Non-cash investing and financing activities:
Due to related party exchanged for convertible note payable	0	0
Convertible notes payable exchanged for common stock	0	1,907,238
Accrued interest exchanged for common stock	0	0
Common stock units issued for Hoot limited partner units	$ 0	$ 986,651

XML

OTHER LIABILITIES (Details Textual) (USD $)	3 Months Ended	6 Months Ended
	Mar. 31, 2013	Jun. 30, 2013
Line of Credit Facility, Maximum Borrowing Capacity		$ 180,000
Line of Credit Facility, Interest Rate During Period		3.00%
Unsecured Debt [Member]
Repayments of Short-term Debt		5,000
Secured Debt [Member]
Repayments of Debt	98,579
Gain (Loss) on Repurchase of Debt Instrument	14,371
Bank Overdrafts [Member]
Line of Credit Facility, Interest Rate During Period		9.50%
Repayments of Debt	56,529
Gain (Loss) on Repurchase of Debt Instrument	$ 56,529

XML

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2013	Dec. 31, 2012
ASSETS
Cash	$ 160,550	$ 1,223,803
Restricted cash	2,750,000	0
Accounts receivable	134,737	161,073
Other receivable	70,907	85,473
Inventory	169,227	227,023
Due from related parties	113,748	117,899
Prepaid expenses	216,307	170,769
Assets of discontinued operations	55,357	44,335
TOTAL CURRENT ASSETS	3,670,833	2,030,375
Property and equipment, net	2,127,114	2,316,146
Goodwill	396,487	396,487
Intangible assets, net	624,301	559,832
Investments at fair value	19,983	56,949
Other investments	1,983,927	2,116,915
Deposits and other assets	166,718	169,727
TOTAL ASSETS	8,989,363	7,646,431
LIABILITIES AND STOCKHOLDERS' EQUITY
Current maturities of long-term debt, line of credit and notes payable	574,141	236,110
Advances from investors	2,750,000	0
Accounts payable and accrued expenses	1,102,633	1,108,305
Other current liabilities	102,774	361,586
Current maturities of capital leases payable	30,574	27,965
Deferred rent	20,049	10,825
Due to related parties	13,733	13,733
Liabilities of discontinued operations	9,031	14,328
TOTAL CURRENT LIABILITIES	4,602,935	1,772,852
Capital leases payable, less current maturities	36,337	60,518
Deferred rent	99,486	98,448
Other liabilities	108,040	186,060
TOTAL LIABILITIES	4,846,798	2,117,878
Stockholders' equity:
Common stock: $0.0001 par value; authorized 20,000,000 shares; issued and outstanding 3,702,896 and 3,698,896 shares at June 30 2013 and December 31, 2012, respectively	370	370
Additional paid in capital	14,992,022	14,898,423
Other comprehensive loss	(163,792)	(181,741)
Accumulated deficit	(10,703,474)	(9,258,697)
Non-controlling interest	17,439	70,198
TOTAL STOCKHOLDERS' EQUITY	4,142,565	5,528,553
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 8,989,363	$ 7,646,431

XML

INTANGIBLE ASSETS, NET (Details) (USD $)	3 Months Ended			6 Months Ended
	Jun. 30, 2013		Jun. 30, 2012	Jun. 30, 2013		Jun. 30, 2012	Dec. 31, 2012
Finite-Lived Intangible Assets, Gross	$ 673,572			$ 673,572			$ 598,572
Accumulated amortization	(49,271)			(49,271)			(38,740)
Intangible assets, net	624,301			624,301			559,832
Amortization expense	5,398		4,492	10,531		8,251
South Africa [Member]
Finite-Lived Intangible Assets, Gross	433,888			433,888			358,888
Brazil [Member]
Finite-Lived Intangible Assets, Gross	135,000	[1]		135,000	[1]		135,000	[1]
Hungary [Member]
Finite-Lived Intangible Assets, Gross	$ 104,684			$ 104,684			$ 104,684

[1] The Brazil franchise cost and $75,000 of the fifth South Africa franchise cost are not being amortized until we open the restaurants.

XML

OTHER LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2013

Other Liabilities Disclosure [Abstract]

Schedule of Short-term Debt [Table Text Block]

Other liabilities, which consist of bank overdraft and term facilities at June 30, 2013 and December 31, 2012 are associated with the South African Operations and consist of the following:

	June 30,		December 31,
	2013		2012
Bank overdraft facilities (1)	$	55,936	$	254,251
Term facility (2)		-		112,950
Term facility (3)		154,878		180,445
		210,814		547,646
		108,040		361,586
Other current liabilities	$	102,774	$	186,060

During April 2013, the above overdraft facilities and term facilities were renegotiated.

(1) Bank overdraft facilities have a total maximum facility of approximately $180,000. The interest rate as of June 30, 2013 is 3%. The facilities are reviewed annually and are payable on demand. Concurrently with the January 31, 2013 mentioned in (2) below, the Company was released from a facility totaling $56,529, and a $56,529 gain on settlement of debt was recognized in the first quarter of 2013.

(2) Term facility is payable on demand and the facility is secured by certain assets of one of the Company’s shareholders. After ongoing negotiations between the bank and the Company, on January 31, 2013, $98,579 was paid in full satisfaction of the facility, resulting in a gain on settlement of debt of $14,371 which was recognized in the first quarter of 2013.

(3) The monthly payments of principal and interests of the term facility total approximately $5,000 and have been made for the period from October 1, 2011 through June 2013. The interest rate at June 30, 2013 is 9.5%. 

XML

SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Earnings Per Share, Policy [Policy Text Block]

LOSS PER COMMON SHARE

The Company is required to report both basic earnings per share, which is based on the weighted-average number of common shares outstanding, and diluted earnings per share, which is based on the weighted-average number of common shares outstanding plus all potentially dilutive shares outstanding. For the six months ended June 30, 2013 and June 30, 2012, the number of common shares potentially issuable upon the exercise of certain warrants of 5,001,458 and 2,557,008, respectively, have not been included in the computation of diluted EPS since the effect would be antidilutive. Accordingly, no common stock equivalents are included in the loss per share calculations and basic and diluted earnings per share are the same for all periods presented.

New Accounting Pronouncements Policy [Policy Text Block]

Recent Accounting Pronouncements

On February 5, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassifed Out of Accumulated Other Income. The standard was intended to improve the reporting of reclassifications out of accumulated other comprehensive income of various components. The amendments in this update was effective for annual and interim periods beginning after December 15, 2012. The adoption of ASC No. 2013-12 did not have a material impact on the Company’s consolidated financial statements.

There are several new accounting pronouncements issued by FASB which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. At April 30, 2013, none of these pronouncements are expected to have a material effect on the financial position, results of operations or cash flows of the Company.

XML

INVESTMENTS (Details 6) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenue	$ 569,838	$ 767,721	$ 1,204,412	$ 1,875,784
Gross profit	465,358	545,896	910,254	1,327,149
Recurring expenses	503,738	613,952	977,710	1,320,099
Pre-opening costs	0	0	0	96,613
Loss from continuing operations	(38,380)	(68,056)	(67,456)	(89,563)
Net loss	$ (38,380)	$ (68,056)	$ (67,456)	$ (89,563)

XML

LONG-TERM DEBT AND NOTES PAYABLE (Details) (USD $)	Jun. 30, 2013	Apr. 11, 2013	Dec. 31, 2012
Line of credit to a bank, expires April 10, 2014, interest rate of Wall St. Journal Prime (currently 3.25%) plus 1%, floor rate of 5%.	$ 342,000	$ 732,000	$ 0
Note payable to a bank due in monthly installments of $1,739 including interest at Wall Street Journal Prime + 1% (minimum of 5.5%); remaining balance due August 10, 2013; collateralized by substantially all of the Company's assets and guaranteed by Mr. Pruitt	232,141		236,110
Notes payable and current portion of long-term debt	$ 574,141		$ 236,110

XML

RELATED PARTY TRANSACTIONS (Details Textual) (USD $)	12 Months Ended				3 Months Ended		6 Months Ended		1 Months Ended	12 Months Ended	6 Months Ended
	Dec. 31, 2011 Durban [Member]	Dec. 31, 2011 Johannesburg [Member]	Dec. 31, 2011 Cape Town [Member]	Jun. 30, 2013 Hoa Llc [Member]	Jun. 30, 2013 Chanticleer Investors, LLC [Member]	Jun. 30, 2012 Chanticleer Investors, LLC [Member]	Jun. 30, 2013 Chanticleer Investors, LLC [Member]	Jun. 30, 2012 Chanticleer Investors, LLC [Member]	Jun. 30, 2011 North American Energy Resources Inc [Member]	Dec. 31, 2010 North American Energy Resources Inc [Member]	Jun. 30, 2013 Avenel Financial Group Inc [Member]
Notes Receivable, Related Parties				$ 3,550,000
Revenue from Related Parties					0	6,698	61,793	0
Income Received For Management Services Shares										150,000
Income Received For Management Services										10,500
Shares Contributed For Management Services									1,790,440
Values Contributed For Management Services									125,331
Investments In Related Party	14,000	12,500	25,000								6,441
Percentage Of Investments In Related Party	2.00%	1.50%	2.90%
SA Profits Amount											$ 49,816

XML

INVESTMENTS (Details 1) (USD $)	3 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jan. 31, 2013
Cost at beginning and end of periods	$ 263,331	$ 263,331	$ 19,983
Unrealized loss	(243,348)	(206,382)
Total	$ 19,983	$ 56,949	$ 19,983

XML

NATURE OF BUSINESS (Details Textual) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended				1 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Apr. 11, 2013	Jun. 30, 2013 South Africa [Member]	Aug. 02, 2013 Secured Subordinate Convertible Notes [Member] Subsequent Event [Member]	Jan. 31, 2013 Chief Executive Officer [Member]
Stockholders' Equity Note, Stock Split			Effective May 11, 2012, the Company's common stock was reverse split, 1 share for each 2 shares issued, pursuant to a majority vote of the Company's shareholders. All share references have been adjusted as if the split occurred in all periods presented.
TOTAL CURRENT ASSETS	$ 3,670,833		$ 3,670,833		$ 2,030,375
TOTAL CURRENT LIABILITIES	4,602,935		4,602,935		1,772,852
Working Capital Balance(Deficit)	932,102		932,102
Net loss	(681,964)	(843,616)	(1,444,777)	(1,547,401)
non(controlling interest)	(13,202)	(132,021)	(36,966)	(237,639)
Foreign translation income (loss)	41,400	7,666	54,916	(1,048)
Other comprehensive income (loss):	(678,746)	(967,971)	(1,426,827)	(1,786,088)
Approximate General and Administrative Expenses			675,000		650,000
Going Concern Description			In August 2012, the Company opened a restaurant in Budapest, Hungary, and earns 80% of the profits with our operating partner earning 20%. The Company also earns 49% of the profits with our operating partner earning 51% in its Hooters restaurant which was opened in January 2012 in Campbelltown, Australia, a suburb of Sydney.
Line of Credit, Current	500,000		500,000
Line of credit to a bank	342,000		342,000		0	732,000	210,814
Other Liabilities	210,814		210,814				170,000
Gain on extinguishment of debt			70,900	0
Payment Of Bank Liabilities			99,000
Director Sitting Fee									100,000
Advances from investors Current	2,750,000		2,750,000		0
Restricted Cash and Cash Equivalents, Current	2,750,000		2,750,000
Debt Instrument, Face Amount								$ (3,000,000)
Debt Instrument, Interest Rate, Stated Percentage								6.00%

XML

SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,001,458	2,557,008

XML

RESTRICTED CASH AND ADAVANCES FROM INVESTORS

6 Months Ended

Jun. 30, 2013

Restricted cash and advances from investors [Abstract]

Restricted cash and advances from investors [Text Block]

8. restricted cash and adavances from investors

During June, 2013, certain investors advanced the Company $2,750,000 (and an additional $250,000 was received during July, 2013). The Company finalized documentation with the investors on August 2, 2013, these funds are restricted (and is presented in the condensed consolidated balance sheets as restricted cash in our current assets and advances from investors in our current liabilities) and are to be used on future Hooters expansion. On August 2, 2013, the Company entered into an agreement with seven individual accredited investors, whereby the Company issued separate 6% Secured Subordinate Convertible Notes for a total of three million dollars ($3,000,000) in a private offering. The funding from the private offering is being used exclusively for the acquisition of the Nottingham, England Hooters restaurant location (complete details of the transaction are included in the Company’s Form 8-K filed with the Securities and Exchange Commission on August 5, 2013). The Company will classify the funds received as convertible notes payable in our September 30, 2013 10-Q filing. See Note 16, “Subsequent Events”, for further information.

XML

STOCKHOLDER'S EQUITY (Details Textual) (USD $)	1 Months Ended			6 Months Ended	8 Months Ended	12 Months Ended
	Apr. 30, 2013	Aug. 31, 2012	May 31, 2012	Jun. 30, 2013	Jul. 31, 2013	Dec. 31, 2012
Common stock, shares authorized				20,000,000		20,000,000
Common Stock, Par Or Stated Value Per Share				$ 0.0001		$ 0.0001
Common stock, shares outstanding				3,702,896		3,698,896
Common Stock, Shares, Issued				3,702,896		3,698,896
Stock Issued During Period, Shares, Issued for Services	4,000		5,000
Stock Issued During Period, Value, Issued For Services	$ 7,720		$ 32,400
Stockholders' Equity, Reverse Stock Split						Effective May 11, 2012, the Company's common stock was reverse split, 1 share for each 2 shares issued, pursuant to a majority vote of the Company's shareholders. All share references have been adjusted as if the split occurred in to all periods presented.
Stockholders Equity Note, Stock Split, Conversion Ratio						0.5
Stock Issued During Period, Shares, New Issues						2,444,450
Registration Statement Description						The Company filed a Form S-1 Registration Statement under the Securities Act of 1933 which was declared effective on June 21, 2012.
Stock Issued During Period New Issues Price Per Share						$ 4.50
Warrant Redeemable						5 years
Warrants Exercisable Price Per Share						$ 5.00
Proceeds From Issuance Of Units And Warrants						11,000,000
Net Proceeds From Issuance Of Units and Warrants						7,200,000
Outstanding Indebtedness Converted In To Units and Warrants						1,900,000
Non Controlling Interest Converted In To Units and Warrants						1,000,000
Treasury stock cancelled (in shares)		256,615
Expense Related To Terminated Service Agreement				$ 2,576	$ 3,217

XML

CAPITAL LEASE PAYABLE (Tables)

6 Months Ended

Jun. 30, 2013

Capital Lease Obligations [Abstract]

Schedule Of Lease Payments For Capital Leases [Table Text Block]

Capital leases payable at June 30, 2013 and December 31, 2012 is associated with the South African Operations and consists of the following.

	June 30,		December 31,
	2013		2012
Capital lease payable, due in 49 monthly installments of $1,081, including interest at 10%, through April 2016	$	33,692	$	38,548
Capital lease payable, due in 32 monthly insallments of $800 including interest at 10%, through November 2014		13,011		17,183
Capital lease payable, due in 14 monthly installments of $1,470, including interest at 10%, through May 2013		-		7,389
Capital lease payable, due in 36 monthly installments of $1,022, including interest at 10%, through February 2015		20,208		25,363
Total capital leases payable		66,911		88,483
Current maturities		30,574		27,965
Capital leases payable, less current maturities	$	36,337	$	60,518

Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]

The capital leases cover point of sale and other equipment for three of the South African restaurants. Annual requirements for capital lease obligations are as follows:

June 30,	Amount
2014	$	35,888
2015		26,962
2016		12,251
Total minimum lease payments		75,101
Less: amount representing interest		(8,190)
Present Value of Net Minimum Lease Payments	$	66,911

XML

INVESTMENTS (Details 4) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Balance, beginning of year	$ 1,066,915		$ 1,066,915	$ 815,550	$ 815,550
Equity in earnings (loss)	(18,806)	(33,348)	(33,053)	(43,886)	(14,803)
Investment fundings (repayments)	(99,935)				409,543
Reclassification of investments	0				(143,375)
Balance, end of period	933,927		933,927		1,066,915
Hoot Campbelltown Pty Ltd [Member]
Equity in earnings (loss)	(18,806)	(33,348)	(33,053)	(43,886)
Hoot Campbelltown Pty Ltd [Member] | AUSTRALIA [Member]
Equity in earnings (loss)	522,278				555,331
Second Hooters Location [Member] | AUSTRALIA [Member]
Equity in earnings (loss)	$ 411,649				$ 511,584

XML

STOCKHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

11. Stockholders’ Equity

The Company has 20,000,000 shares of its $0.0001 par value common stock authorized at both June 30, 2013 and December 31, 2012, and 3,702,896 shares issued and outstanding and 3,698,896 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively. There are no options outstanding.

Effective May 11, 2012, the Company's common stock was reverse split, 1 share for each 2 shares issued, pursuant to a majority vote of the Company's shareholders. All share references have been adjusted as if the split occurred in to all periods presented.

2013 Transactions

On April 22, 2013, the Company issued 4,000 shares of the Company’s common stock in exchange for investor relations services to be performed over a 12 month period, valued at $7,720. On July 31, 2013, the Company terminated the service agreement, the Company will expense a total of $3,217 for the five month period of the agreement ($2,576 has been expensed through June 30, 2013).

2012 Transactions

On May 8, 2012, the Company issued 5,000 shares of its common stock in exchange for services to be performed over a six month period and valued at $32,400.

EQUITY RAISE

The Company filed a Form S-1 Registration Statement under the Securities Act of 1933 which was declared effective on June 21, 2012. The Company issued 2,444,450 units at $4.50 per unit, consisting of one share of Common Stock and one five year redeemable warrant (redeemable at the Company’s option) exercisable at $5.00 per share for an issuance value of $11 million (net $7.2 million). The issuance of shares included shares issued upon the conversion of notes payable and accrued interest of approximately $1.9 million and shares issued for the purchase of a percentage of the Hoot SA non-controlling interest of approximately $1.0 million.

During August 2012, treasury stock shares of 256,615 were cancelled and returned to the Company.

XML

LONG-TERM DEBT AND NOTES PAYABLE

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

7. LONG-TERM DEBT AND NOTES PAYABLE

Long-term debt and notes payable are summarized as follows.

	June 30,		December 31,
	2013		2012
Line of credit to a bank, expires April 10, 2014, interest rate of Wall St. Journal Prime (currently 3.25%) plus 1%, floor rate of 5%.	$	342,000	$	-
Note payable to a bank due in monthly installments of $1,739 including interest at Wall Street Journal Prime + 1% (minimum of 5.5%); remaining balance due August 10, 2013; collateralized by substantially all of the Company's assets and guaranteed by Mr. Pruitt		232,141		236,110
Notes payable and current portion of long-term debt	$	574,141	$	236,110

On April 11, 2013, the Company and Paragon Commercial Bank (“Paragon”) entered into a credit agreement (the “Credit Agreement”). The Credit Agreement provides for an additional $500,000 revolving credit facility with a one (1) year term from the Closing Date. This increases the Company’s obligation to Paragon to a total of approximately $732,000, which includes a prior note payable’s current outstanding balance of approximately $234,000. The Credit Agreement is available to be drawn at the Company’s discretion to finance investments in new business ventures and for the Company’s general corporate working capital requirements in the ordinary course of business. The note payable matures on August 10, 2013, and an extension is currently being negotiated, whereas the new credit facility expires on April 10, 2014.

Borrowings under the Credit Agreement bear monthly interest at the greater of: (i) floor rate of 5.00% or (ii) the Wall Street Journal’s prime plus rate (currently 3.25%) plus 1.00%. All unpaid principal and interest are due one (1) year after the Closing Date. Any borrowings are secured by a lien on all of the Company’s assets. The obligations under the Credit Agreement are guaranteed by Mike Pruitt, the Company’s Chief Executive Officer.

XML

SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2. SIGNIFICANT ACCOUNTING POLICIES

There have been no material changes to our significant accounting policies previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

LOSS PER COMMON SHARE

The Company is required to report both basic earnings per share, which is based on the weighted-average number of common shares outstanding, and diluted earnings per share, which is based on the weighted-average number of common shares outstanding plus all potentially dilutive shares outstanding. For the six months ended June 30, 2013 and June 30, 2012, the number of common shares potentially issuable upon the exercise of certain warrants of 5,001,458 and 2,557,008, respectively, have not been included in the computation of diluted EPS since the effect would be antidilutive. Accordingly, no common stock equivalents are included in the loss per share calculations and basic and diluted earnings per share are the same for all periods presented.

Recent Accounting Pronouncements

On February 5, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassifed Out of Accumulated Other Income. The standard was intended to improve the reporting of reclassifications out of accumulated other comprehensive income of various components. The amendments in this update was effective for annual and interim periods beginning after December 15, 2012. The adoption of ASC No. 2013-12 did not have a material impact on the Company’s consolidated financial statements.

There are several new accounting pronouncements issued by FASB which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. At April 30, 2013, none of these pronouncements are expected to have a material effect on the financial position, results of operations or cash flows of the Company.

XML

INTANGIBLE ASSETS, NET (Details 1) (USD $)	Jun. 30, 2013
2013	$ 23,179
2014	23,179
2015	23,179
2016	23,179
2017	23,179
Thereafter	298,406
Totals	$ 414,301

XML

INVESTMENTS (Details 9) (USD $)	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Investments accounted for under the cost method	$ 1,050,000	$ 1,050,000	$ 1,050,000	$ 766,598
Chanticleer Investors, LLC [Member]
Investments accounted for under the cost method	800,000		800,000
Edison Nation LLC [Member]
Investments accounted for under the cost method	$ 250,000		$ 250,000

XML

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Rent obligations for our five restaurants are presented below:

Years ended June 30,
2014	$	510,595
2015		488,718
2016		445,432
2017		229,083
thereafter		554,647
Totals	$	2,228,475

Schedule of Rent Expense [Table Text Block]

Rent expense for the three and six months ended June 30, 2013 and June 30, 2012 was as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Segment:
Restaurants (1)	$	165,047	$	142,621	$	349,025	$	273,887
Management (2)		7,797		6,525		17,403		13,050
Totals	$	172,844	$	149,146	$	366,428	$	286,937

XML

SEGMENTS OF BUSINESS (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Revenues	$ 1,666,043	$ 1,721,123	$ 3,333,165	$ 3,133,618
Interest expense	18,443	208,102	55,386	393,212
Depreciation and amortization	129,876	87,161	244,100	167,185
Loss from continuing operations	(710,392)	(874,643)	(1,482,425)	(1,579,082)
Loss from discontinued operations	(24,980)	(38,660)	(15,111)	(100,523)
Non-controlling interest	28,428	69,687	52,759	132,204
Loss from continuing operations	(681,964)	(843,616)	(1,444,777)	(1,547,401)
Assets	7,919,380	8,321,230	7,919,380	8,321,230
Non-restaurant investments	1,069,983	772,500	1,069,983	772,500
Total Assets	8,989,363	9,093,730	8,989,363	9,093,730	7,646,431
Liabilities	4,846,798	1,953,682	4,846,798	1,953,682	2,117,878
Expenditures for non-current assets			119,186	936,839
Management [Member]
Revenues	25,000	25,000	50,000	50,000
Interest expense	6,674	196,333	32,896	137,504
Depreciation and amortization	1,085	2,335	3,275	4,525
Loss from continuing operations	(511,128)	(702,737)	(1,133,368)	(1,197,510)
Assets	4,740,796	4,976,491	4,740,796	4,976,491
Liabilities	3,493,189	619,553	3,493,189	619,553
Expenditures for non-current assets			0	1,346
Restaurants [Member]
Revenues	1,641,043	1,696,123	3,283,165	3,083,618
Interest expense	11,769	11,769	22,490	255,708
Depreciation and amortization	128,791	84,826	240,825	162,660
Loss from continuing operations	(199,264)	(171,906)	(349,057)	(381,572)
Assets	3,178,584	3,344,739	3,178,584	3,344,739
Liabilities	1,353,609	1,334,129	1,353,609	1,334,129
Expenditures for non-current assets			$ 119,186	$ 935,493

XML

CAPITAL LEASE PAYABLE (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Total capital leases payable	$ 66,911	$ 88,483
Current maturities	30,574	27,965
Capital leases payable, less current maturities	36,337	60,518
April 2016 [Member]
Total capital leases payable	33,692	38,548
November 2014 [Member]
Total capital leases payable	13,011	17,183
May 2013 [Member]
Total capital leases payable	0	7,389
February 2015 [Member]
Total capital leases payable	$ 20,208	$ 25,363

XML

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

14. COMMITMENTS AND CONTINGENCIES

Effective August 1, 2010, the Company extended its office lease agreement for its office for a term of one year with monthly lease payments of $2,100. Since August 1, 2011, the office lease continues at the same rate on a month-to-month basis. On July 1, 2012, the Company signed a one year office lease agreement for a satellite office in Florida for one year at a monthly rate of $800; the lease was not renewed upon its expiration in June 30, 2013.

The Company leases the land and buildings for its four restaurants in South Africa and one restaurant in Hungary through its subsidiaries. The South Africa leases are for five year terms and the Hungary lease is for a 10 year term and include options to extend the terms. We lease some of our restaurant facilities under “triple net” leases that require us to pay minimum rent, real estate taxes, maintenance costs and insurance premiums and, in some instances, percentage rent based on sales in excess of specified amounts.

Rent obligations for our five restaurants are presented below:

Years ended June 30,
2014	$	510,595
2015		488,718
2016		445,432
2017		229,083
thereafter		554,647
Totals	$	2,228,475

Rent expense for the three and six months ended June 30, 2013 and June 30, 2012 was as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Segment:
Restaurants (1)	$	165,047	$	142,621	$	349,025	$	273,887
Management (2)		7,797		6,525		17,403		13,050
Totals	$	172,844	$	149,146	$	366,428	$	286,937

(1) Included in restaurant operating expenses of the Consolidated Statement of Operations

(2) Included in general and administrative expenses of the Consolidated Statement of Operations

On October 12, 2012, Francis Howard (“Howard”), individually and on behalf of all others similarly situated, filed a lawsuit against Chanticleer Holdings, Inc. (the “Company”), Michael D. Pruitt, Eric S. Lederer, Michael Carroll, Paul I. Moskowitz, Keith Johnson (The “Individual Defendants”), Merriman Capital, Inc., Dawson James Securities, Inc. (The “Underwriter Defendants”), and Creason & Associates P.L.L.C. (The “Auditor Defendant”), in the U.S. District Court for the Southern District of Florida.  The class action lawsuit alleges violations of Section 11 of the Securities Act against all Defendants, violations of Section 12(a)(2) of the Securities Act against only the Underwriter Defendants, and violations of Section 15 against the Individual Defendants.  Howard seeks unspecified damages, reasonable costs and expenses incurred in this action, and such other and further relief as the Court deems just and proper. On October 15th, 2012, the Honorable Judge James I. Cohn filed an Order setting the Calendar Call for the case for June 13th, 2013, and the Trial Date for the trial period commencing on June 17th, 2013.  On October 31st, 2012, the Company and the Individual Defendants retained Stanley Wakshlag at Kenny Nachwalter, P.A. to represent them in this litigation. Requests by the Underwriting Defendants for indemnification were denied.  On November 2nd, 2012, we filed a Joint Motion to Extend Deadline to Respond to Class Action Complaint, requesting that our responsive pleading deadline be delayed until after a lead Plaintiff is named.  That Motion was approved, and on December 12th, 2012, Howard filed a Motion to Appoint himself Lead Plaintiff and to Approve his selection of The Rosen Law Firm, P.A. as his Counsel.  An Order appointing Francis Howard and the Rosen Law Firm as lead Plaintiff and lead Plaintiff’s Counsel was entered on January 4, 2013. Therein, Judge Cohn also reset Calendar Call for October 10, 2013; trial was reset for the two-week period commencing October 15, 2013. On February 19, 2013, Plaintiff filed an Amended Complaint. On April 5, 2013, the Company, Individual Defendants, and the Auditor Defendant (separately) filed a Motion to Dismiss the action. Plaintiff filed an opposition to Chanticleer Defendants’ (and Auditor Defendants’) Motion to Dismiss on April 22, 2013.  On May 9, 2013, the Company and Individual Defendants filed a Reply Memorandum of Defendants Chanticleer Holdings, Inc., Michael D. Pruitt, Eric S. Lederer, Michael Carroll, Paul I Moskowitz, and Keith Johnson in support of their Motion to Dismiss the Amended Class Action Complaint.  Judge Cohn has yet to make a ruling on the Motions.  On May 20, 2013, the Plaintiff filed a Notice of Voluntary Dismissal without prejudice of Defendants Dawson James Securities, Inc. and Merrimal Capital, Inc. Pursuant to the Federal Rules of Civil Procedure 41(a)(1)(A). The Company has and will continue to vigorously defend itself in this matter.

On March 26, 2013, our South African operations received Notice of Motion filed in the Kwazulu-Natal High Court, Durban, Republic of South Africa, filed against Rolalor (PTY) LTD (“Rolalor”) and Labyrinth Trading 18 (PTY) LTD (“Labyrinth”) by Jennifer Catherine Mary Shaw (“Shaw”). Rolalor and Labyrinth were the original entities formed to operate the Johannesburg and Durban locations, respectively. On September 9, 2011, the assets and the then-disclosed liabilities of these entities were transferred to Tundraspex (PTY) LTD (“Tundraspex”) and Dimaflo (PTY) LTD (“Dimaflo”), respectively. The current entities, Tundraspex and Dimaflo are not parties in the lawsuit. Shaw is requesting that the Respondents, Rolalor and Labyrinth, be wound up in satisfaction of an alleged debt owed in the total amount of R4,082,636.13 (approximately $442,189). The Company has and will continue to vigorously defend itself in this matter.

On April 1, 2013, the Company received a subpoena from the Securities and Exchange Commission seeking information regarding our South African entities’ previous accounting issues. The Company responded as required by the due date of April 30, 2013 and intends to otherwise comply as required.

The Company has engaged outside South African tax experts in September 2012 to assist with compliance with Value Added Tax (VAT), payroll taxes, and income taxes in South Africa. A voluntary disclosure agreement has been submitted and the Company is awaiting contact from the South African governmental agency. As of June 30, 2013, $375,084 has been accrued and is included in accounts payable and accrued expenses in our condensed consolidated balance sheet.

In connection with the acquisition of the business as described in Note 3 (whereby, on October 1, 2011, Rolalor (Pty.) Ltd., Almenta 177 (Pty.) Ltd. and Labyrinth Trading (Pty.) Ltd. transferred their respective net assets to the newly formed entities controlled by the Company), the Company believes the purchase and sale with the seller was accomplished in accordance with the laws and regulations of the taxing authorities in South Africa. However, there can be no absolute assurance as to whether the business acquired continues to have any outstanding tax and regulatory filing requirements, as well as whether the local authorities could seek to recover any unpaid taxes or other amounts due from the Company, its shareholders or others. The Company is not aware of any existing obligations that remain outstanding for which the Company may be required to settle. In connection with acquiring the net assets of the business, the Company may be entitled to be reimbursed by the seller for any pre-acquisition obligations of the business that may arise, post-acquisition.

In addition, the Company’s South African subsidiaries have not filed certain corporate income tax returns for previous years, which could potentially result in penalties upon filing these returns.

XML

CAPITAL LEASE PAYABLE

6 Months Ended

Jun. 30, 2013

Capital Lease Obligations [Abstract]

Capital Lease Obligations [Text Block]

10. capital lease payable

Capital leases payable at June 30, 2013 and December 31, 2012 is associated with the South African Operations and consists of the following.

	June 30,		December 31,
	2013		2012
Capital lease payable, due in 49 monthly installments of $1,081, including interest at 10%, through April 2016	$	33,692	$	38,548
Capital lease payable, due in 32 monthly insallments of $800 including interest at 10%, through November 2014		13,011		17,183
Capital lease payable, due in 14 monthly installments of $1,470, including interest at 10%, through May 2013		-		7,389
Capital lease payable, due in 36 monthly installments of $1,022, including interest at 10%, through February 2015		20,208		25,363
Total capital leases payable		66,911		88,483
Current maturities		30,574		27,965
Capital leases payable, less current maturities	$	36,337	$	60,518

The capital leases cover point of sale and other equipment for three of the South African restaurants. Annual requirements for capital lease obligations are as follows:

June 30,	Amount
2014	$	35,888
2015		26,962
2016		12,251
Total minimum lease payments		75,101
Less: amount representing interest		(8,190)
Present Value of Net Minimum Lease Payments	$	66,911

XML

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Jun. 30, 2013
2014	$ 510,595
2015	488,718
2016	445,432
2017	229,083
thereafter	554,647
Totals	$ 2,228,475

XML

RESIGNATION OF SOUTH AFRICAN CHIEF FINANCIAL OFFICER

6 Months Ended

Jun. 30, 2013

Companys South African Chief Financial Officer Resigned [Abstract]

Company's South African Chief Financial Officer Resigned [Text Block]

17. RESIGNATION OF SOUTH AFRICAN CHIEF FINANCIAL OFFICER

On September 7, 2012, the audit committee of Chanticleer Holdings, Inc. (the “Company”), upon recommendation of the Company’s management determined that the Company’s Consolidated Financial Statements for its fiscal year ended December 31, 2011 as originally filed in the Form 10-K could no longer be relied on. The Company determined that the Financial Statements of Kiarabrite (Pty) Ltd., Dimaflo (Pty) Ltd., Tundraspex (Pty) Ltd., Civisign (Pty) Ltd., Dimalogix (Pty) Ltd., and Chanticleer & Shaw Foods (Pty.) Ltd. (collectively referred to as the “South Africa Operations”) which are the South African management company and the four entities organized for the stores we operate in South Africa and the company that owns the HOA franchise rights for the territory of South Africa, were not audited as the Company was led to believe. Accordingly, this Amendment is being filed to include the report of the independent registered public accounting firm responsible for performing the audit of our South Africa Operations.

On September 7, 2012, the Company’s South African Chief Financial Officer (“SA CFO”) resigned. It was determined that the SA CFO had committed certain illegal acts, fraud and certain misrepresentations of facts. Due to the SA CFO’s actions, certain taxes were not paid. In addition, the applicable tax forms were not filed during the proper periods. The Company has engaged tax experts to assist in the tax process. The Company also discovered approximately $128,000 (net of repayments of approximately $57,000) and approximately $85,000 (net of repayments of approximately $43,000) of cash that was misappropriated by the SA CFO during the periods ended June 30, 2013 and December 31, 2012, respectively (presented as “other receivable” on the Company’s combined balance sheets). As of June 30, 2013, approximately $57,000 has been recovered by the Company and payment plans are in place for the remainder.

XML

DISCLOSURES ABOUT FAIR VALUE

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

15. DISCLOSURES ABOUT FAIR VALUE

Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables according to FASB ASC 820 pricing levels.

	Fair Value Measurement Using
			Quoted prices
			in active		Significant
			markets of		other		Significant
			identical		observable		Unobservable
	Recorded		assets		inputs		Inputs
	value		(Level 1)		(Level 2)		(Level 3)
June 30, 2013
Assets:
Available-for-sale securities	$	19,983	$	18,483	$	1,500	$	-
December 31, 2012
Assets:
Available-for-sale securities	$	56,949	$	55,449	$	1,500	$	-

At June 30, 2013 and December 31, 2012, the Company's available-for-sale equity securities were valued using Level 1 and Level 2 inputs as summarized above. Level 1 inputs are based on unadjusted prices for identical assets in active markets that the Company can access. Level 2 inputs are based on quoted prices for similar assets other than quoted prices in Level 1, quoted prices in markets that are not yet active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets.

The Company does not have any investments that are measured on a recurring basis using Level 3 inputs.

Certain assets are not carried at fair value on a recurring basis, including investments accounted for under the equity and cost methods. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to re-measurement at fair value after initial recognition and the resulting re-measurement is reflected in the consolidated financial statements.

See Note 4 for further details of the Company's investments.

XML

Document And Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 05, 2013
Document Information [Line Items]
Entity Registrant Name	Chanticleer Holdings, Inc.
Entity Central Index Key	0001106838
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	HOTR
Entity Common Stock, Shares Outstanding		3,702,896
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2013

XML

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

16. SUBSEQUENT EVENTS

On August 2, 2013, the Company entered into an agreement with seven individual accredited investors, whereby the Company issued separate 6% Secured Subordinate Convertible Notes for a total of three million dollars ($3,000,000) in a private offering. The funding from the private offering is being used exclusively for the acquisition of the Nottingham, England Hooters restaurant location (complete details of the transaction included in the Form 8-K filed with the Securities and Exchange Commission on August 5, 2013). The funding from the private offering is being used exclusively for the acquisition of the Nottingham, England Hooters restaurant location (acquisition detailed below). The Notes have the following principal terms:

· the principal amount of the Note shall be repaid within thirty six (36) months of the issuance date at a non-compounded six percent (6%) interest rate per annum;

· the Note holders shall receive ten percent (10%), pro rata, of the net profit of the Nottingham, England Hooters restaurant, paid quarterly for the life of the location, and ten percent (10%) of the net proceeds should the location be sold;

· the consortium of investors received a total of three hundred thousand (300,000) three (3) year warrants, exercisable at three dollars ($3.00) per share;

· the Note holder may convert his or her Note into shares of the Company’s common stock (at ninety percent (90%) of the average closing price ten (10) days prior to conversion, unless a public offering is pending at the time of the conversion notice, which would result in the conversion price being the same price as the offering).The conversion price is subject to a floor of one dollar ($1 USD) per share;

· the Note holder has the right to redeem the Note for a period of sixty (60) days following the eighteen (18) month anniversary of the issuance of the Note, unless a capital raise is conducted within eighteen (18) months after the issuance of the Note.

The securities were issued pursuant to an exemption from registration under Section 4(2) of the Securities Act of 1933.

On August 2, 2013, the Company entered into a Binding Letter of Intent with West End Wings Limited and Manchester Wings Limited (the “Seller”) for the purchase of the Nottingham, England Hooters restaurant location for a total purchase price of three million one hundred and fifty thousand dollars ($3,150,000).  The closing is contingent upon the completion of a full and accurate audit, and is expected to occur the earlier of the completion of the audit or October 31, 2013. With the signing of the Binding Letter of Intent, Chanticleer provided the Seller with a $200,000 deposit towards the purchase consideration. As part of this transaction, all franchise rights to the location will be transferred to the Company.

XML

CAPITAL LEASE PAYABLE (Details Textual) (USD $)	6 Months Ended
	Jun. 30, 2013
April 2016 [Member]
Number Of Monthly Installments	49
Interest Expense, Lessee, Assets under Capital Lease	$ 1,081
Capital Lease Payable Interest Rate	10.00%
November 2014 [Member]
Number Of Monthly Installments	32
Interest Expense, Lessee, Assets under Capital Lease	800
Capital Lease Payable Interest Rate	10.00%
May 2013 [Member]
Number Of Monthly Installments	14
Interest Expense, Lessee, Assets under Capital Lease	1,470
Capital Lease Payable Interest Rate	10.00%
February 2015 [Member]
Number Of Monthly Installments	36
Interest Expense, Lessee, Assets under Capital Lease	$ 1,022
Capital Lease Payable Interest Rate	10.00%

XML

CAPITAL LEASE PAYABLE (Details 1) (USD $)	Jun. 30, 2013
2014	$ 35,888
2015	26,962
2016	12,251
Total minimum lease payments	75,101
Less: amount representing interest	(8,190)
Present Value of Net Minimum Lease Payments	$ 66,911