INTANGIBLE ASSETS

9 Months Ended

Sep. 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.

Intangible assets at September 30, 2013, represent franchise license costs for the Denver restaurant. On September 23, 2013, the Company terminated the Area Developer Agreement ("ADA") with the Franchisor for the exclusive rights for the first 10 cities identified in the ADA, subject to customary conditions and exceptions, and for the ownership and operation of up to 30 Southern Hospitality restaurants in the United States. The Company originally paid $300,000 for the franchise license costs for ten planned restaurants. As a result of the termination of the ADA, the Company determined this event impaired the intangible assets and a result of impairment expense was recorded in the quarter ended September 30, 2013 of $250,000.

Amortization began in February 2013 with the opening of the Company's Denver-based restaurant with amortization expense of $1,250 and $3,125 recorded for the three and nine months ended September 30, 2013. Amortization expense for the next five years is estimated to be as follows:

2013 (remaining three months)	$	1,250
2014		5,000
2015		5,000
2016		5,000
2017		5,000
Thereafter		25,625
	$	46,875