INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2013

NOTE 3 - INTANGIBLE ASSETS

Franchise Agreements

In 2011, the Company paid $300,000 for the non-exclusive rights and license to use the Southern Hospitality system and Southern Hospitality licensed marks in connection with the operation of ten restaurants to be owned and operated by the Company under franchise and related area development agreements. These costs are allocable to each planned restaurant. The allocated cost to each restaurant is to be amortized beginning with each restaurant opening over the remaining ten-year term of the related franchise agreement. Amortization began in February 2013 with the opening of the Company's first Denver-based restaurant with amortization expense of $1,250 and $1,875 recorded for the three and six months ended June 30, 2013. Amortization expense for the next five years is estimated to be as follows:

2013 (remaining six months)	$	2,500
2014		7,500
2015		17,500
2016		22,500
2017		27,500
Thereafter		220,625
	$	298,125