INTANGIBLE ASSET

12 Months Ended

Dec. 31, 2013

NOTE 3 - INTANGIBLE ASSET

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 were allocable to each planned restaurant.

In September 2013, the Company terminated the Area Developer Agreement ("ADA") with the Franchisor. As a result of the termination of the ADA, the Company determined this event impaired the intangible asset, and a resulting impairment expense was recorded in the year ended December 31, 2013, of $250,000. The intangible asset at December 31, 2013, represents franchise license costs for the Denver restaurant (net of accumulated amortization of $4,375).

Amortization began in February 2013 with the opening of the Company's Denver-based restaurant, with amortization expense of $4,375 recorded for the year ended December 31, 2013. Amortization expense for the next five years is estimated to be as follows:


2014	$	5,000
2015		5,000
2016		5,000
2017		5,000
2018		5,000
Thereafter		20,625
	$	45,625