UNITED STATES
SECURITIES AND EXCHANGE COMMISSION



WASHINGTON,
DC 20549



FORM 10-Q/A



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



| | For Quarter Ended:      |  | March 31, 2012 | 
| | ----------------------- |  | -------------- | 
| |                         |  |                | 
| | 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 April 30, 2012, was 2,498,891
shares.











EXPLANATORY
NOTE



We
filed our Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 on May 15, 2012 (the “Original Report”).
We are filing this Amendment No. 1 on Form 10-Q/A (this “Amendment”) to make the following changes:

| | · | To
                                                                                                                            add
                                                                                                                            Note
                                                                                                                            16
                                                                                                                            for
                                                                                                                            the
                                                                                                                            restatement;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | To
                                                                                                                            update
                                                                                                                            management
                                                                                                                            discussion
                                                                                                                            and
                                                                                                                            analysis
                                                                                                                            in
                                                                                                                            Item
                                                                                                                            2;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | To
                                                                                                                            restate
                                                                                                                            financial
                                                                                                                            statements
                                                                                                                            as
                                                                                                                            required;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | To
                                                                                                                            add
                                                                                                                            restated
                                                                                                                            reference
                                                                                                                            in
                                                                                                                            the
                                                                                                                            financial
                                                                                                                            statements;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | To
                                                                                                                            amend
                                                                                                                            disclosure
                                                                                                                            of
                                                                                                                            Controls
                                                                                                                            and
                                                                                                                            Procedures
                                                                                                                            in
                                                                                                                            Item
                                                                                                                            4;
                                                                                                                            and
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Provide
                                                                                                                            currently
                                                                                                                            dated
                                                                                                                            Exhibit
                                                                                                                            Nos.
                                                                                                                            31-1
                                                                                                                            and
                                                                                                                            32-1.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



No
other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of
the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update
in any way disclosures made in the original Form 10-Q.



On
September 7, 2012, the audit committee of 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 African 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 changes
to the financial statements of the South African Operations and its impact on the consolidated financial statements of the Company
for the period ended March 31, 2012, as a result of the audit of the South African Operations for the three months ended December
31, 2011 and the subsequent review of the operations for the three months ended March 31, 2012. We have made no attempt in this
Amendment to modify or update the disclosures presented in the Original Report other than as noted in the previous paragraph.
Also, this Amendment does not reflect events occurring after the filing of the Original Report. Accordingly, this Amendment should
be read in conjunction with the Original Report and our other filings with the SEC subsequent to the filing of the Original Report.



2







Chanticleer
Holdings, Inc. and Subsidiaries



INDEX



|        |          |                                                                                          | Page
|------- | -------- | ---------------------------------------------------------------------------------------- | ----
|        |          |                                                                                          | No. 
|        |          |                                                                                          |     
|Part I  |          | Financial Information (unaudited)                                                        | 4   
|        |          |                                                                                          |     
|        | Item 1:  | Condensed Consolidated Financial Statements                                              | 4   
|        |          |                                                                                          |     
|        |          | Restated Balance Sheets as of March 31, 2012 and December 31, 2011                       | 4   
|        |          | Statements of Operations – For the Three Months Ended March 31, 2012 (Restated) and 2011 | 5   
|        |          | Statements of Cash Flows – For the Three Months Ended March 31, 2012 (Restated) and 2011 | 6   
|        |          | Notes to Financial Statements                                                            | 8   
|        | Item 2:  | Management’s Discussion and Analysis of Financial Condition and Results of Operations    | 29  
|        | Item 3:  | Quantitative and Qualitative Disclosure about Market Risk                                | 34  
|        | Item 4:  | Controls and Procedures                                                                  | 34  
|        |          |                                                                                          |     
|Part II |          | Other Information                                                                        | 35  
|        |          |                                                                                          |     
|        | Item 1:  | Legal Proceedings                                                                        | 35  
|        | Item 1A: | Risk Factors                                                                             | 35  
|        | Item 2:  | Unregistered Sales of Equity Securities and Use of Proceeds                              | 35  
|        | Item 3:  | Defaults Upon Senior Securities                                                          | 35  
|        | Item 4:  | Submission of Matters to a Vote of Security Holders                                      | 35  
|        | Item 5:  | Other Information                                                                        | 35  
|        | Item 6:  | Exhibits                                                                                 | 35  



3







Part
I: FINANCIAL INFORMATION



Item
1: CONDENSED FINANCIAL StatemenTS

Chanticleer
Holdings, Inc. and Subsidiaries

Condensed
Consolidated Balance Sheets (Restated Note 16)

March 31,
2012 (Unaudited) and December 31, 2011



|                                                                                                                                                                       |  | 2012 |            |   | 2011 |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ---------- | - | ---- | -
|ASSETS                                                                                                                                                                 |  |      |            |   |      |  
|Current assets:                                                                                                                                                        |  |      |            |   |      |  
|Cash and cash equivalents                                                                                                                                              |  | $    | 229,446    |   |      | $
|Accounts receivable                                                                                                                                                    |  |      | 55,131     |   |      |  
|Other receivable                                                                                                                                                       |  |      | 58,136     |   |      |  
|Inventory                                                                                                                                                              |  |      | 145,375    |   |      |  
|Due from related parties                                                                                                                                               |  |      | 77,679     |   |      |  
|Prepaid expenses                                                                                                                                                       |  |      | 173,891    |   |      |  
|TOTAL CURRENT ASSETS                                                                                                                                                   |  |      | 739,658    |   |      |  
|Property and equipment, net                                                                                                                                            |  |      | 1,745,477  |   |      |  
|Intangible assets, net                                                                                                                                                 |  |      | 972,810    |   |      |  
|Investments at fair value                                                                                                                                              |  |      | 212,735    |   |      |  
|Other investments                                                                                                                                                      |  |      | 1,700,332  |   |      |  
|Deposits and other assets                                                                                                                                              |  |      | 59,449     |   |      |  
|TOTAL ASSETS                                                                                                                                                           |  | $    | 5,430,461  |   |      | $
|                                                                                                                                                                       |  |      |            |   |      |  
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                   |  |      |            |   |      |  
|Current liabilities:                                                                                                                                                   |  |      |            |   |      |  
|Current maturities of long-term debt and notes
    payable                                                                                                             |  | $    | 1,185,616  |   |      | $
|Convertible notes payable                                                                                                                                              |  |      | 2,725,000  |   |      |  
|Accounts payable and accrued expenses                                                                                                                                  |  |      | 735,147    |   |      |  
|Other current liabilities                                                                                                                                              |  |      | 370,302    |   |      |  
|Current maturities of capital leases payable                                                                                                                           |  |      | 38,583     |   |      |  
|Deferred rent                                                                                                                                                          |  |      | 3,114      |   |      |  
|Due to related parties                                                                                                                                                 |  |      | 30,113     |   |      |  
|TOTAL CURRENT LIABILITIES                                                                                                                                              |  |      | 5,087,875  |   |      |  
|Long-term debt, less current maturities                                                                                                                                |  |      | 233,499    |   |      |  
|Capital leases payable, less current maturities                                                                                                                        |  |      | 84,076     |   |      |  
|Deferred rent                                                                                                                                                          |  |      | 62,239     |   |      |  
|Other liabilities                                                                                                                                                      |  |      | 234,144    |   |      |  
|TOTAL LIABILITIES                                                                                                                                                      |  |      | 5,701,833  |   |      |  
|Commitments and contingencies (Note 13)                                                                                                                                |  |      |            |   |      |  
|                                                                                                                                                                       |  |      |            |   |      |  
|Stockholders' equity (deficit):                                                                                                                                        |  |      |            |   |      |  
|Common stock:  $0.0001 par value; authorized
    200,000,000 shares; issued 3,012,121 shares; and outstanding 2,498,891 shares at March 31, 2012 and December 31, 2011 |  |      | 301        |   |      |  
|Additional paid in capital                                                                                                                                             |  |      | 6,483,001  |   |      |  
|Other comprehensive income (loss)                                                                                                                                      |  |      | (63,682    | ) |      |  
|Non-controlling interest                                                                                                                                               |  |      | 631,345    |   |      |  
|Accumulated deficit                                                                                                                                                    |  |      | (6,795,917 | ) |      |  
|Less treasury stock, 513,230 shares at                                                                                                                                 |  |      |            |   |      |  
|March 31, 2012 and December 31, 2011                                                                                                                                   |  |      | (526,420   | ) |      |  
|Total stockholders' equity
    (deficit)                                                                                                                               |  |      | (271,372   | ) |      |  
|TOTAL LIABILITIES
    AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                               |  | $    | 5,430,461  |   |      | $



See accompanying notes to condensed
consolidated financial statements.



4







Chanticleer
Holdings, Inc. and Subsidiaries

Condensed
Consolidated Statements of Operations

For the Three
Months Ended March 31, 2012 (Restated Note 16) and March 31, 2011

(Unaudited)

|                                                                                                       |  | 2012                   |           |   |      |  
|------------------------------------------------------------------------------------------------------ |  | ---------------------- | --------- | - | ---- | -
|                                                                                                       |  | (Restated
    Note 16) |           |   | 2011 |  
|Revenue:                                                                                               |  |                        |           |   |      |  
|Restaurant sales, net                                                                                  |  | $                      | 1,387,495 |   |      | $
|Management fee income - non-affiliates                                                                 |  |                        | 25,000    |   |      |  
|Management fee income -
    affiliates                                                                 |  |                        | -         |   |      |  
|Total revenue                                                                                          |  |                        | 1,412,495 |   |      |  
|Expenses:                                                                                              |  |                        |           |   |      |  
|Restaurant cost of sales                                                                               |  |                        | 581,551   |   |      |  
|Restaurant operating expenses                                                                          |  |                        | 769,332   |   |      |  
|Restaurant pre-opening expenses                                                                        |  |                        | 40,721    |   |      |  
|General and administrative expense                                                                     |  |                        | 511,522   |   |      |  
|Depreciation and amortization                                                                          |  |                        | 80,024    |   |      |  
|Total
    expenses                                                                                     |  |                        | 1,983,150 |   |      |  
|Earnings (loss) from operations                                                                        |  |                        | (570,655  | ) |      |  
|Other income (expense)                                                                                 |  |                        |           |   |      |  
|Equity in earnings (losses) of investments                                                             |  |                        | (10,538   | ) |      |  
|Realized gains from sales of investments                                                               |  |                        | -         |   |      |  
|Interest income                                                                                        |  |                        | -         |   |      |  
|Miscellaneous income                                                                                   |  |                        | -         |   |      |  
|Interest expense                                                                                       |  |                        | (185,110  | ) |      |  
|Total
    other income (expense)                                                                       |  |                        | (195,648  | ) |      |  
|Net earnings (loss) before income taxes                                                                |  |                        | (766,303  | ) |      |  
|Provision
    for income taxes                                                                         |  |                        | -         |   |      |  
|Net earnings (loss) before non-controlling interest                                                    |  |                        | (766,303  | ) |      |  
|Non-controlling interest                                                                               |  |                        | 62,518    |   |      |  
|Net earnings (loss)                                                                                    |  |                        | (703,785  | ) |      |  
|Other comprehensive income (loss):                                                                     |  |                        |           |   |      |  
|Unrealized
    gain (loss) on available-for-sale securities (none applies to non-controlling interest) |  |                        | (105,618  | ) |      |  
|Foreign
    translation income (loss)                                                                  |  |                        | (8,714    | ) |      |  
|Other
    comprehensive income (loss)                                                                  |  | $                      | (818,117  | ) |      | $
|                                                                                                       |  |                        |           |   |      |  
|Net earnings (loss) per
    share, basic and diluted                                                   |  | $                      | (0.28     | ) |      | $
|Weighted average shares outstanding                                                                    |  |                        | 2,498,891 |   |      |  



See accompanying notes to condensed
consolidated financial statements.



5







Chanticleer
Holdings, Inc. and Subsidiaries

Condensed
Consolidated Statements of Cash Flows

For the Three
Months Ended March 31, 2012 (Restated Note 16) and March 31, 2011

(Unaudited)



|                                                                                           |  | 2012                   |           |   |      |  
|------------------------------------------------------------------------------------------ |  | ---------------------- | --------- | - | ---- | -
|                                                                                           |  | (Restated
    Note 16) |           |   | 2011 |  
|Cash flows from operating activities:                                                      |  |                        |           |   |      |  
|Net earnings (loss)                                                                        |  | $                      | (703,785  | ) |      | $
|Adjustments to reconcile
    net earnings (loss) to net cash used in operating activities: |  |                        |           |   |      |  
|Non-controlling interest                                                                   |  |                        | (62,518   | ) |      |  
|Depreciation and amortization                                                              |  |                        | 80,024    |   |      |  
|Equity in (earnings) loss of investments                                                   |  |                        | 10,538    |   |      |  
|(Gain) loss on sale of investments                                                         |  |                        | -         |   |      |  
|Amortization of warrants                                                                   |  |                        | 23,495    |   |      |  
|(Increase) decrease in accounts and other receivables                                      |  |                        | 37,556    |   |      |  
|(Increase) decrease in prepaid expenses and other
    assets                               |  |                        | (63,314   | ) |      |  
|(Increase) decrease inventory                                                              |  |                        | (40,302   | ) |      |  
|Increase (decrease) in accounts payable and accrued
    expenses                           |  |                        | 257,143   |   |      |  
|Increase (decrease) in deferred rent                                                       |  |                        | 14,966    |   |      |  
|Increase (decrease) in deferred revenue                                                    |  |                        | -         |   |      |  
|Advance from related parties
    for working capital                                       |  |                        | (1,179    | ) |      |  
|Net cash used by operating
    activities                                                  |  |                        | (447,376  | ) |      |  
|                                                                                           |  |                        |           |   |      |  
|Cash flows from investing activities:                                                      |  |                        |           |   |      |  
|Proceeds from sale of investments                                                          |  |                        | -         |   |      |  
|Proceeds from non-controlling interests                                                    |  |                        | 90,000    |   |      |  
|Investment distribution                                                                    |  |                        | -         |   |      |  
|Purchase of investments                                                                    |  |                        | (129,796  | ) |      |  
|Franchise fees incurred                                                                    |  |                        | (240,000  | ) |      |  
|Purchase of property and equipment                                                         |  |                        | (316,683  | ) |      |  
|Net cash provided (used)
    by investing activities                                       |  |                        | (596,479  | ) |      |  
|                                                                                           |  |                        |           |   |      |  
|Cash flows from financing activities:                                                      |  |                        |           |   |      |  
|Loan proceeds, net                                                                         |  |                        | 1,113,000 |   |      |  
|Increase (decrease) in other liabilities                                                   |  |                        | 10,519    |   |      |  
|Loan and capital lease repayment                                                           |  |                        | (6,633    | ) |      |  
|Net cash provided (used)
    by financing activities                                       |  |                        | 1,116,886 |   |      |  
|Effect of exchange rate changes on cash                                                    |  |                        | (8,714    | ) |      |  
|Net increase in cash and cash equivalents                                                  |  |                        | 64,317    |   |      |  
|Cash and cash equivalents,
    beginning of period                                         |  |                        | 165,129   |   |      |  
|Cash and cash equivalents,
    end of period                                               |  | $                      | 229,446   |   |      | $



See accompanying notes to condensed
consolidated financial statements.



6







Chanticleer
Holdings, Inc. and Subsidiaries

Condensed
Consolidated Statements of Cash Flows, continued

For the Three
Months Ended March 31, 2012 (Restated Note 16) and March 31, 2011

(Unaudited)

|                                                            |  | 2012                   |        |  |      |  
|----------------------------------------------------------- |  | ---------------------- | ------ |  | ---- | -
|                                                            |  | (Restated
    Note 16) |        |  | 2011 |  
|                                                            |  |                        |        |  |      |  
|Supplemental cash flow information:                         |  |                        |        |  |      |  
|Cash paid for interest and income taxes:                    |  |                        |        |  |      |  
|Interest                                                    |  | $                      | 75,146 |  |      | $
|Income taxes                                                |  |                        | -      |  |      |  
|                                                            |  |                        |        |  |      |  
|Non-cash investing and financing activities:                |  |                        |        |  |      |  
|Due to related party exchanged for convertible note payable |  | $                      | -      |  |      | $
|Convertible notes payable exchanged for common stock        |  |                        | -      |  |      |  
|Accrued interest exchanged for common stock                 |  |                        | -      |  |      |  



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
condensed 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”). All significant inter-company balances and transactions have
been eliminated in consolidation.



Further
detailed information regarding the Company's subsidiaries can be found in our Annual Report on Form 10-K/A for the fiscal year
ended December 31, 2011.



Effective
March 23, 2011, the Company's common stock was forward split, 2 shares for each share issued, pursuant to written consent by a
majority of the Company's shareholders. All share references have been adjusted as if the split occurred prior to all periods
presented.



GENERAL



The
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 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.



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 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 period ended December 31, 2011, which is included in the Company’s
Form 10-K/A.



GOING CONCERN



At
March 31, 2012 and December 31, 2011, the Company had restated current assets of $739,658 and $641,963; current liabilities of
$5,087,875 and $3,720,486; and a working capital deficit of $4,348,217 and $3,078,523, respectively. The Company incurred a loss
of $703,785 during the three months ended March 31, 2012 and had an unrealized loss from available-for-sale securities of $105,618
and a foreign currency translation loss of $8,714, resulting in a comprehensive loss of $818,117.



8







The
Company's corporate general and administrative expenses averaged approximately $295,000 per quarter during 2011 and has increased
to $481,000 in the current quarter as we expanded our footprint internationally. Effective October 1, 2011, the Company acquired
majority control of the restaurants in South Africa and began consolidating these operations. The Company shares 49% of the profits
in our Hooters location opened in January 2012 in Campbelltown, Australia, a suburb of Sydney.



In
addition, the Company has a note with a balance at March 31, 2012 of $241,115 owed to its bank which is due in August 2013 and
a line of credit with its bank with a balance at March 31, 2012 of $1,178,000 (total available $2,000,000) due on August 20, 2012.
We also have convertible notes payable with certain investors with a balance at March 31, 2012 of $2,725,000, which have maturity
dates from January 22 through June 26 2012. None of the noteholders whose notes have matured have taken any action to seek to
enforce their notes. As of May 1, 2012, there are $975,000 of notes that have matured. The notes bear interest at an 18% annualized
rate, The Company plans to continue to use limited partnerships, if the Company’s contemplated raise is not completed, to
fund its share of costs for additional Hooters restaurants.



The
Company expects to meet its obligations in 2012 with some or all of the following:

| | · | Proceeds
                                                                                                                             from
                                                                                                                             the
                                                                                                                             sale
                                                                                                                             of
                                                                                                                             units
                                                                                                                             (consisting
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             and
                                                                                                                             warrants).
                                                                                                                             The
                                                                                                                             Company
                                                                                                                             filed
                                                                                                                             an
                                                                                                                             S-1
                                                                                                                             registration
                                                                                                                             statement
                                                                                                                             (which
                                                                                                                             has
                                                                                                                             yet
                                                                                                                             to
                                                                                                                             go
                                                                                                                             effective)
                                                                                                                             to
                                                                                                                             raise
                                                                                                                             up
                                                                                                                             to
                                                                                                                             $15,000,000;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The
                                                                                                                             Company
                                                                                                                             received
                                                                                                                             $100,000
                                                                                                                             in
                                                                                                                             January
                                                                                                                             2012
                                                                                                                             as
                                                                                                                             a
                                                                                                                             fee
                                                                                                                             for
                                                                                                                             its
                                                                                                                             CEO
                                                                                                                             sitting
                                                                                                                             on
                                                                                                                             the
                                                                                                                             Board
                                                                                                                             of
                                                                                                                             Hooters
                                                                                                                             of
                                                                                                                             America
                                                                                                                             and
                                                                                                                             expect
                                                                                                                             to
                                                                                                                             continue
                                                                                                                             to
                                                                                                                             receive
                                                                                                                             this
                                                                                                                             annual
                                                                                                                             fee
                                                                                                                             for
                                                                                                                             the
                                                                                                                             next
                                                                                                                             three
                                                                                                                             years
                                                                                                                             based
                                                                                                                             on
                                                                                                                             the
                                                                                                                             current
                                                                                                                             agreement;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Borrow
                                                                                                                             additional
                                                                                                                             funds
                                                                                                                             on
                                                                                                                             its
                                                                                                                             existing
                                                                                                                             line
                                                                                                                             of
                                                                                                                             credit;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Convert
                                                                                                                             its
                                                                                                                             convertible
                                                                                                                             notes
                                                                                                                             payable
                                                                                                                             into
                                                                                                                             common
                                                                                                                             stock.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



If
any or all of 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.



| | 2. | SIGNIFICANT
                                                                                                                     ACCOUNTING
                                                                                                                     POLICIES
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



There
have been no material changes to our significant accounting policies previously disclosed in our amended Annual Report on Form
10-K/A for the fiscal year ended December 31, 2011 except for the following:



RESTAURANT
PRE-OPENING EXPENSES



Restaurant
pre-opening expenses, which are expensed as incurred, consist of the costs of hiring and training the initial hourly work force
for each new restaurant, travel, the cost of food and supplies used in training, grand opening promotional costs, the cost of
the initial stocking of operating supplies and other direct costs related to the opening of a restaurant, including rent during
the construction and in-restaurant training period.



Recent
Accounting Pronouncements



There
are several new accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) which are not
yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. At April 30, 2012, none
of these pronouncements are expected to have a material effect on the financial position, results of operations or cash flows
of the Company.



9







| | 3. | ACQUISITION
                                                                                                   OF MAJORITY OWNED HOOTERS RESTAURANTS
                                                                                                   (RESTATED NOTE 16)
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Effective
October 1, 2011, the Company acquired majority ownership of a management company, a company that owns the HOA franchise rights
for the territory of South Africa, and four Hooters restaurants in South Africa. Previously, the Company owned a minority interest
in the restaurants and was not in control and these operations were accounted for using the equity method of accounting. New entities
were formed for the operations and the Company’s ownership at March 31, 2012 is as follows: KPL 80%, DFLO 56%, TPL 69%,
CPL 60% and DLOG 100%. The restaurant owned by DFLO in Durban opened in January 2010, the restaurant owned by TPL in Johannesburg
opened in June 2010, the restaurant owned by CPL in Cape Town opened in June 2011and the restaurant owned by DLOG opened in February
2012.



The
acquisition was accounted for using the purchase method of accounting and, accordingly, the consolidated statements of operations
include the results of the South African operations beginning October 1, 2011. The assets acquired and the liabilities assumed
were recorded at estimated fair values as determined by the Company’s management based on information currently available
and on current assumptions as to future operations. A summary of the estimated fair value of assets acquired and liabilities assumed
in the acquisition follows:



|Current assets, excluding cash and cash
    equivalents |  | $ | 138,801   | 
|------------------------------------------------------- |  | - | --------- | 
|Property and equipment and intangible assets            |  |   | 1,985,799 | 
|Total assets excluding cash and cash equivalents        |  | $ | 2,124,600 | 
|Liabilities assumed                                     |  |   | 953,917   | 
|Non-controlling interest                                |  |   | 645,436   | 
|Prior investment of the Company                         |  |   | 320,247   | 
|Purchase price (net assets
    acquired)                |  | $ | 205,000   | 
|Cash paid                                               |  | $ | 205,000   | 



Liabilities
assumed includes $604,446 and $593,928 at March 31, 2012 and December 31, 2011, respectively, in bank debt of the prior entities
which the Company has agreed to repay without interest upon completion of its new financing. These amounts are included in other
liabilities at March 31, 2012 and December 31, 2011.



Unaudited
pro forma results of operations for the three months ended March 31, 2011, as if the Company had acquired majority ownership of
the South African Hooters restaurants on January 1, 2011 is as follows. The pro forma results include estimates and assumptions
which management believes are reasonable. However, pro forma results are not necessarily indicative of the results that would
have occurred if the business combination had been in effect on the dates indicated, or which may result in the future.



|                                          |  | 2011 |          
|----------------------------------------- |  | ---- | ---------
|                                          |  |      |          
|Net revenues                              |  | $    | 1,399,048
|Net earnings                              |  | $    | 276,736  
|Net earnings per share, basic and diluted |  | $    | 0.13     



10







| | 4. | INVESTMENTS
| | -- | -----------



INVESTMENTS
AT FAIR VALUE CONSIST OF THE FOLLOWING AT MARCH 31, 2012 AND DECEMBER 31, 2011.



|                                             |  | 2012 |         |  | 2011 |  
|-------------------------------------------- |  | ---- | ------- |  | ---- | -
|                                             |  |      |         |  |      |  
|Available-for-sale investments at fair value |  | $    | 212,735 |  |      | $
|Trading securities                           |  |      | -       |  |      |  
|Total                                        |  | $    | 212,735 |  |      | $



AVAILABLE-FOR-SALE
SECURITIES



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

|                                                               |  | 2012 |         |   | 2011 |  
|-------------------------------------------------------------- |  | ---- | ------- | - | ---- | -
|                                                               |  |      |         |   |      |  
|Cost at beginning of year                                      |  | $    | 263,331 |   |      | $
|Contributed to the Company by it's CEO                         |  |      | -       |   |      |  
|Received as management fees                                    |  |      | -       |   |      |  
|Other than temporary loss in available-for-sale
    securities |  |      | -       |   |      |  
|Cost at end of period                                          |  |      | 263,331 |   |      |  
|Unrealized gain (loss)                                         |  |      | (50,596 | ) |      |  
|Total                                                          |  | $    | 212,735 |   |      | $



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



|                                |  |      |         |  | Unrecognized   |   |         |       |  |   | Realized |  |  | Loss |         
|------------------------------- |  | ---- | ------- |  | -------------- | - | ------- | ----- |  | - | -------- |  |  | ---- | --------
|                                |  |      |         |  | Holding        |   |         | Fair  |  |   | Holding  |  |  | on   |         
|                                |  | Cost |         |  | Gains (Losses) |   |         | Value |  |   | Loss     |  |  | Sale |         
|March 31, 2012                  |  |      |         |  |                |   |         |       |  |   |          |  |  |      |         
|North Carolina Natural Energy * |  | $    | 1,500   |  |                | $ | -       |       |  | $ | 1,500    |  |  | $    | -       
|North American Energy           |  |      | 126,000 |  |                |   | (70,000 | )     |  |   | 56,000   |  |  |      | -       
|North American Energy *         |  |      | 10,500  |  |                |   | 1,500   |       |  |   | 12,000   |  |  |      | -       
|North American Energy           |  |      | 125,331 |  |                |   | 17,904  |       |  |   | 143,235  |  |  |      | -       
|                                |  | $    | 263,331 |  |                | $ | (50,596 | )     |  | $ | 212,735  |  |  | $    | -       
|                                |  |      |         |  |                |   |         |       |  |   |          |  |  |      |         
|December 31, 2011               |  |      |         |  |                |   |         |       |  |   |          |  |  |      |         
|Remodel Auction *               |  | $    | -       |  |                | $ | -       |       |  | $ | -        |  |  | $    | (900    
|North Carolina Natural Energy * |  |      | 1,500   |  |                |   | -       |       |  |   | 1,500    |  |  |      | -       
|North American Energy           |  |      | 126,000 |  |                |   | (42,000 | )     |  |   | 84,000   |  |  |      | -       
|North American Energy *         |  |      | 10,500  |  |                |   | 7,500   |       |  |   | 18,000   |  |  |      | -       
|North American Energy           |  |      | 125,331 |  |                |   | 89,522  |       |  |   | 214,853  |  |  |      | -       
|Efftec International, Inc. *    |  |      | -       |  |                |   | -       |       |  |   | -        |  |  |      | (22,500 
|HiTech Stages                   |  |      | -       |  |                |   | -       |       |  |   | -        |  |  |      | (124,573
|                                |  | $    | 263,331 |  |                | $ | 55,022  |       |  | $ | 318,353  |  |  | $    | (147,973



* Investments acquired in exchange
for management services.



Remodel
Auction Incorporated (“REMC”) –During 2009, the Company acquired 334 shares of REMC for management services
with an initial cost of $275,000 which has now been fully impaired.



11







North
Carolina Natural Energy, Inc. (“NCNE”) – NCNE is a successor to REMC 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 March 31, 2012 and December 31, 2011, the stock was $0.08 and $0.12
per share, respectively, and the Company had recorded an unrealized loss of $42,000 as of December 31, 2011 and an additional
$28,000 in the first quarter of 2012, 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 March 31, 2012 and December 31, 2011, the
shares were valued at $12,000 and $18,000.



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 March 31, 2012 and
December 31, 2011, the shares had a market value of $143,235 and $214,853, respectively.



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.



EffTec
International, Inc. -Effective April 1, 2010, the Company's CEO became a director and the CEO of EffTec International, Inc.
The Company received 150,000 shares of EffTec and an option to acquire an additional 150,000 shares at $0.15 per share in exchange
for the management services to be provided. The shares were valued at $22,500 based on the trading price of EffTec at the date
of the transaction. At September 30, 2011, the market value of the Efftec stock dropped to less than $0.01 per share and the Company
determined the reduction was other than temporary and impaired its investment to zero.



EffTec
developed an Internet-based chiller tool called EffTrackTM that: collects, stores and analyzes chiller operating data, calculates
and trends chiller performance, diagnoses the cause of chiller inefficiencies, notifies plant contacts when problems occur, recommends
corrective actions, measures the results of corrective actions and provides cost analysis of operational improvements.



HiTech
Stages, Ltd. (“HiTech”) – The Company originally acquired 275,000 shares of HiTech in exchange for
150,450 shares of DineOut during the June 2010 quarter. HiTech was unable to raise sufficient capital to fund its business plan
and the stock price dropped to near zero at September 30, 2011. The Company determined the decline was other than temporary and
fully impaired its investment on September 30, 2011.



OTHER INVESTMENTS
ARE SUMMARIZED AS FOLLOWS AT MARCH 31, 2012 AND DECEMBER 31, 2011.



|                                                  |  | 2012 |           |  | 2011 |  
|------------------------------------------------- |  | ---- | --------- |  | ---- | -
|                                                  |  |      |           |  |      |  
|Investments accounted for under the equity method |  | $    | 933,734   |  |      | $
|Investments accounted for under the cost method   |  |      | 766,598   |  |      |  
|Total                                             |  | $    | 1,700,332 |  |      | $



12







INVESTMENTS
ACCOUNTED FOR USING THE EQUITY METHOD



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

|                           |  | Three Months    |         |   | Year Ended   |  
|-------------------------- |  | --------------- | ------- | - | ------------ | -
|                           |  | Ended March, 31 |         |   | December 31, |  
|                           |  | 2012            |         |   | 2011         |  
|                           |  |                 |         |   |              |  
|Balance, beginning of year |  | $               | 815,550 |   |              | $
|Equity in earnings (loss)  |  |                 | (10,538 | ) |              |  
|New investments            |  |                 | 128,722 |   |              |  
|Distributions received     |  |                 | -       |   |              |  
|Balance, end of year       |  | $               | 933,734 |   |              | $



Equity investments
consist of the following at March 31, 2012 and December 31, 2011:



|                                                  |  | 2012 |         |  | 2011 |  
|------------------------------------------------- |  | ---- | ------- |  | ---- | -
|Carrying value:                                   |  |      |         |  |      |  
|Hoot SA I, II, III - South Africa                 |  | $    | 163,590 |  |      | $
|Hoot Campbelltown Pty. Ltd. (49%) - Australia     |  |      | 559,596 |  |      |  
|Hoot Surfers Paradise Pty. Ltd. (49%) - Australia |  |      | 210,447 |  |      |  
|Brazil                                            |  |      | 101     |  |      |  
|                                                  |  | $    | 933,734 |  |      | $



Equity
in earnings (loss) and distributions from equity investments during the three months ended March 31, 2012 and 2011 follows. The
activity from the South African restaurants is through September 30, 2011 at which time the Company acquired majority ownership
and began consolidating these operations

|                                        |  | 2012 |         |   | 2011 |  
|--------------------------------------- |  | ---- | ------- | - | ---- | -
|Equity in earnings (loss):              |  |      |         |   |      |  
|Hoot S.A. I, II, III (opened June 2011) |  |      | -       |   |      |  
|Hoot Campbelltown (49%)                 |  |      | (10,538 | ) |      |  
|                                        |  | $    | (10,538 | ) |      | $
|Distributions:                          |  |      |         |   |      |  
|Hoot S.A. I, LLC (20%)                  |  |      | -       |   |      |  
|Hoot S.A. II, LLC (20%)                 |  |      | -       |   |      |  
|                                        |  | $    | -       |   |      | $



The
summarized financial data below includes the South African operations, of which we owned 20% at March 31, 2011 and the Hoot Campbelltown
location in Australia, which we owned 49% of at March 31, 2012. The Company acquired majority ownership of the South African operations
effective September 30, 2011.

|                                         |  | 2012      |           |   | 2011         |  
|---------------------------------------- |  | --------- | --------- | - | ------------ | -
|                                         |  | Australia |           |   | South Africa |  
|Revenue                                  |  | $         | 1,108,063 |   |              | $
|Gross profit                             |  |           | 781,253   |   |              |  
|Recurring expenses                       |  |           | 706,147   |   |              |  
|Pre-opening costs                        |  |           | 96,613    |   |              |  
|Income (loss) from continuing operations |  |           | (21,507   | ) |              |  
|Net income (loss)                        |  |           | (21,507   | ) |              |  



13







The
summarized balance sheets for the two locations in Australia of which we owned 49% at March 31, 2012 and December 31, 2011 follows:



|                                           |  | 2012 |           |  | 2011 |  
|------------------------------------------ |  | ---- | --------- |  | ---- | -
|ASSETS                                     |  |      |           |  |      |  
|Current assets                             |  | $    | 141,377   |  |      | $
|Non-current assets                         |  |      | 2,260,399 |  |      |  
|TOTAL ASSETS                               |  | $    | 2,401,776 |  |      | $
|LIABILITIES                                |  |      |           |  |      |  
|Current liabilities                        |  | $    | 576,000   |  |      | $
|PARTNER'S EQUITY                           |  |      | 1,825,776 |  |      |  
|TOTAL LIABILITIES AND PARTNERS'
    EQUITY |  | $    | 2,401,776 |  |      | $



Hooters
S.A., GP -The Company formed CHL to own the Company's 50% general partner interest in Hooters S.A., GP, the general partner
of the Hooters' restaurant franchises in South Africa. The initial restaurant opened in December 2009 in Durban, South Africa
and operations commenced in January 2010. In the initial restaurant CHL had a 10% interest in restaurant cash flows until the
limited partners receive payout and a 40% interest in restaurant cash flows after limited partner payout. The second location
opened in Johannesburg in June 2010 and a third location opened in Cape Town in June of 2011 with similar structures. Effective
September 30, 2011, the Company acquired majority control of the South African operations and began consolidating its operations
on October 1, 2011.



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,
Hoot Surfers Paradise Pty. Ltd., is underway with plans to open in the second quarter of 2012.



INVESTMENTS ACCOUNTED FOR USING
THE COST METHOD



Investments
at cost consist of the following at March 31, 2012 and December 31, 2011:



|Chanticleer Investors, LLC                             |  | $ | 500,000 |  |  | $ | 500,000 | 
|------------------------------------------------------ |  | - | ------- |  |  | - | ------- | 
|Edison Nation LLC (FKA Bouncing
    Brain Productions) |  |   | 250,000 |  |  |   | 250,000 | 
|Chanticleer Investors II                               |  |   | 16,598  |  |  |   | 16,598  | 
|                                                       |  | $ | 766,598 |  |  | $ | 766,598 | 



Chanticleer
Investors LLC -The Company sold 1/2 of its investment in Investors LLC in May 2009 for its cost of $575,000, 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%.



14







On
January 24, 2011, Investors LLC and its three partners combined to form HOA Holdings, LLC ("HOA LLC") and completed
the acquisition of Hooters of America, Inc. ("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 is 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. The Company now owns approximately
14% of Investors LLC.



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 2012 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.



Chanticleer
Investors II -The Company paid $16,598 in professional services to form this partnership. Chanticleer Advisors, LLC acts
as the managing general partner and receives a management fee based on a percentage of profits.



| | 5. | PROPERTY
                                                                                                                     AND EQUIPMENT
                                                                                                                     (RESTATED
                                                                                                                     NOTE 16)
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Property
and equipment consists of the following at March 31, 2012 and December 31, 2011:



|                                                                         |  | 2012 |           |   | 2011 |  
|------------------------------------------------------------------------ |  | ---- | --------- | - | ---- | -
|                                                                         |  |      |           |   |      |  
|Office and computer equipment                                            |  | $    | 32,179    |   |      | $
|Furniture and fixtures                                                   |  |      | 47,686    |   |      |  
|Construction in progress                                                 |  |      | -         |   |      |  
|Restaurant furnishings and equipment                                     |  |      | 1,867,610 |   |      |  
|                                                                         |  |      | 1,947,475 |   |      |  
|Accumulated depreciation                                                 |  |      | (201,998  | ) |      |  
|                                                                         |  | $    | 1,745,477 |   |      | $
|                                                                         |  |      |           |   |      |  
|Depreciation expense for the three months ended March 31, 2012 and 2011: |  |      |           |   |      |  
|                                                                         |  |      |           |   |      |  
|Restaurants                                                              |  | $    | 74,075    |   |      | $
|Other                                                                    |  |      | 2,190     |   |      |  
|Total                                                                    |  | $    | 76,265    |   |      | $



15







Restaurant
furnishings and equipment consists of leasehold improvements, and bar, kitchen and restaurant equipment used in our four locations
opened as of March 31, 2012. Construction in progress consisted of costs incurred as of December 31, 2011 for our Emperor’s
Palace location in Johannesburg, South Africa, which opened in February 2012 and its assets are currently in the restaurant furnishings
and equipment line above.



Restaurant
furnishings and equipment includes capital lease assets of $141,416 with a net book value of $123,301 at March 31, 2012 and capital
lease assets of $141,416 with a net book value of $131,544 at December 31, 2011.



| | 6. | INTANGIBLE
                                                                                                                      ASSETS,
                                                                                                                      NET (RESTATED
                                                                                                                      NOTE 16)
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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, 2011 at which time the Company determined
that no impairment was necessary. No change has occurred as of March 31, 2012 which would cause the Company to revise their evaluation.



FRANCHISE
COST

Franchise
cost for the Company’s Hooters restaurants consists of the following at March 31, 2012 and December 31, 2011. The Company
is amortizing these costs from the opening of each restaurant for the 20 year term of the franchise agreement with HOA.



|                                            |  | 2012 |         |   | 2011 |  
|------------------------------------------- |  | ---- | ------- | - | ---- | -
|                                            |  |      |         |   |      |  
|Goodwill                                    |  | $    | 396,487 |   |      | $
|Franchise cost:                             |  |      |         |   |      |  
|South Africa                                |  | $    | 345,386 |   |      | $
|Brazil                                      |  |      | 135,000 |   |      |  
|Hungary                                     |  |      | 105,000 |   |      |  
|                                            |  |      | 585,386 |   |      |  
|Accumulated amortization                    |  |      | (9,063  | ) |      |  
|                                            |  |      | 576,323 |   |      |  
|Intangible assets, net                      |  | $    | 972,810 |   |      | $
|                                            |  |      |         |   |      |  
|Three months ended March 31, 2012 and 2011: |  |      |         |   |      |  
|                                            |  |      |         |   |      |  
|Amortization expense                        |  | $    | 3,759   |   |      | $



16







| | 7. | LONG-TERM
                                                                                                                      DEBT AND
                                                                                                                      NOTES PAYABLE
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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



|                                                                                                                                                                                                                                                                                                                                                  |  | March 31, |           |  | December 31, |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------- | --------- |  | ------------ | -
|                                                                                                                                                                                                                                                                                                                                                  |  | 2012      |           |  | 2011         |  
|                                                                                                                                                                                                                                                                                                                                                  |  |           |           |  |              |  
|$2,000,000 line of credit with a bank, interest at Wall
    Street Journal Prime +0.5% (minimum of 4.5%) payable monthly; due August 20, 2012; collateralized by a certificate of deposit
    owned by a shareholder; collateralized by substantially all of the Company's assets and guaranteed by Mr. Pruitt                                    |  | $         | 1,178,000 |  |              | $
|                                                                                                                                                                                                                                                                                                                                                  |  |           |           |  |              |  
|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                                                                      |  |           | 241,115   |  |              |  
|                                                                                                                                                                                                                                                                                                                                                  |  |           |           |  |              |  
|18% convertible notes payable; interest payable
    quarterly; due on the six-month anniversary of the date issued which range from January 22-June 26, 2012; convertible under
    the same terms as the subsequent capital raised in connection with a public offering of the Company's securities (currently
    approximately 908,000 shares) |  |           | 2,725,000 |  |              |  
|                                                                                                                                                                                                                                                                                                                                                  |  |           | 4,144,115 |  |              |  
|Notes payable and current portion of long-term
    debt                                                                                                                                                                                                                                                                                           |  |           | 3,910,616 |  |              |  
|Long-term debt, less current portion                                                                                                                                                                                                                                                                                                              |  | $         | 233,499   |  |              | $



The
Company pays the shareholder whose certificate of deposit is used as collateral on the $2,000,000 line of credit 1% of the outstanding
balance on the line of credit monthly. In addition, the Company issued warrants to the shareholder, as described in Note 8.



| | 8. | bank
                                                                                                                                                 overdraft
                                                                                                                                                 and
                                                                                                                                                 term
                                                                                                                                                 facilities
                                                                                                                                                 (restated
                                                                                                                                                 note
                                                                                                                                                 16)
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Bank overdraft
and term facilities at March 31, 2012 and December 31, 2011 are associated with the South African Operations and consist of the
following:



|                              |  | March 31, |         |  | December 31, |  
|----------------------------- |  | --------- | ------- |  | ------------ | -
|                              |  | 2012      |         |  | 2011         |  
|                              |  |           |         |  |              |  
|Bank overdraft facilities (1) |  | $         | 269,748 |  |              | $
|                              |  |           |         |  |              |  
|Term facility (2)             |  |           | 119,422 |  |              |  
|                              |  |           |         |  |              |  
|Term facility (3)             |  |           | 215,276 |  |              |  
|                              |  |           | 604,446 |  |              |  
|Other current liabilities     |  |           | 370,302 |  |              |  
|Other liabilities             |  | $         | 234,144 |  |              | $



17







| | (1) | Bank
                                                                                                 overdraft facilities are unsecured
                                                                                                 and have a total maximum facility
                                                                                                 of approximately $260,000. The
                                                                                                 interest rate as of March 31,
                                                                                                 2012 and December 31, 2011 was
                                                                                                 11%. The facilities are reviewed
                                                                                                 annually and are payable on demand.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Term
                                                                                                 facility is payable on demand
                                                                                                 and the facility is secured by
                                                                                                 certain assets of one of the
                                                                                                 Company’s shareholders.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3) | The
                                                                                                 monthly payments of principal
                                                                                                 and interest of the term facility
                                                                                                 total approximately $5,300 and
                                                                                                 have been made currently since
                                                                                                 October 1, 2011. The interest
                                                                                                 rate at March 31, 2012 and December
                                                                                                 31, 2011 was 10.3%.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 9. | capital
                                                                                                                                                 lease
                                                                                                                                                 payable
                                                                                                                                                 (restated
                                                                                                                                                 note
                                                                                                                                                 16)
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Capital leases
payable at March 31, 2012 and December 31, 2011 is associated with the South African Operations and consists of the following.



|                                                                                                                      |  | March 31, |         |  | December 31, |  
|--------------------------------------------------------------------------------------------------------------------- |  | --------- | ------- |  | ------------ | -
|                                                                                                                      |  | 2012      |         |  | 2011         |  
|                                                                                                                      |  |           |         |  |              |  
|Capital lease payable, due in 49 monthly installments
    of $1,081, including interest at 10%, through April 2016    |  | $         | 45,392  |  |              | $
|                                                                                                                      |  |           |         |  |              |  
|Capital lease payable, due in 32 monthly insallments of $800 including
    interest at 10%, through November 2014     |  |           | 23,063  |  |              |  
|                                                                                                                      |  |           |         |  |              |  
|Capital lease payable, due in 14 monthly installments of $1,470, including
    interest at 10%, through May 2013      |  |           | 20,722  |  |              |  
|                                                                                                                      |  |           |         |  |              |  
|Capital lease payable, due in 36 monthly installments
    of $1,022, including interest at 10%, through February 2015 |  |           | 33,482  |  |              |  
|Total capital leases payable                                                                                          |  |           | 122,659 |  |              |  
|Current maturities                                                                                                    |  |           | 38,583  |  |              |  
|Capital leases payable,
    less current maturities                                                                   |  | $         | 84,076  |  |              | $



The capital
leases cover point of sale and other equipment for the four restaurants operating at March 31, 2012.



| | 10. | Stockholders’
                                                                                                                                                  Equity
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------



The
Company has 200,000,000 shares of its $0.0001 par value common stock authorized, 3,012,121 shares issued and 2,498,891 shares
outstanding at March 31, 2012 and December 31, 2011.



Effective
March 23, 2011, the Company's common stock was forward split, 2 shares for each share issued, pursuant to approval of a majority
of the Company's shareholders. All share references have been adjusted as if the split occurred prior to all periods presented.



2012 Transactions



None.



18







2011 Transactions



On
March 30, 2011, the Company issued 412,286 shares of its common stock in exchange for convertible notes payable with a balance
of $711,500 and accrued interest of $19,588.



On
July 28, 2011, the Company issued 10,000 shares of its common stock in exchange for consulting services valued at $21,500.



On
September 23, 2011, the Company issued 15,000 shares of its common stock in exchange for consulting services to be performed valued
at $44,850.



On
September 23, 2011, the Company issued 2,750 shares of its common stock in exchange for services performed and valued at $8,223.



On
October 19, 2011, the Company issued 167 shares of its common stock in exchange for cash in the amount of $500.



Warrants



On
January 6, 2011, the Company filed a Form S-1 Registration Statement under the Securities Act of 1933. The Registration Statement
was declared effective on July 14, 2011 and registers one Class A Warrant and one Class B Warrant for each common share of the
Company issued and outstanding. The warrants have a subscription price of $0.04 which entitles our shareholders to acquire one
Class A Warrant which would entitle the holder to acquire one share of our common stock for $2.75 and one Class B Warrant which
would entitle the holder to acquire one share of our common stock for $3.50. The warrants have a five year life. At March 31,
2012 and December 31, 2011, the Company had issued 2,194,509 Class A and Class B warrants. Proceeds from the offering are included
in additional paid in capital and are summarized as follows.



|Proceeds from sales of Class A and Class B warrants |  | $ | 87,780  |  
|--------------------------------------------------- |  | - | ------- | -
|Legal and professional fees incurred for offering   |  |   | (67,172 | )
|                                                    |  | $ | 20,608  |  



On
August 10, 2011, the Company issued two warrants to the shareholder who collateralized the Company's $2,000,000 line of credit
discussed in Note 7. The Class A Warrant is for 200,000 shares exercisable at $2.75 per share for 10 years and the Class B Warrant
is for 225,000 shares exercisable at $3.50 per share for 10 years. The warrants were valued using Black-Scholes at $906,351. This
amount will be amortized to interest expense over the ten year life of the warrants. At March 31, 2012 and December 31, 2011,
additional paid-in capital includes $57,907 and $35,247, respectively, in amortization. Interest expense included $35,247 in 2011
and $22,660 for the three months ended March 31, 2012.



On
November 1, 2011, the Company entered into an investor relations consulting agreement. In addition to cash compensation, the consultant
is entitled to receive warrants for certain performance goals. These warrants will be accounted for when the goals are accomplished.



On
March 28, 2012, the Company issued 250,000 and 50,000 five year warrants at $3.25 and $4.00, respectively for consulting services
related to the Company’s expansion into Europe. The warrants were valued using Black-Scholes at $518,599. This amount will
be amortized to consulting fees (in G&A on consolidated statements of operations) over the five year life of the warrants.
At March 31, 2012, additional paid-in capital and consulting expense include $835 in amortization for the three days in the quarter
after the warrants were issued.



19







11.	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 March
31, 2012 and December 31, 2011 are as follows:



|                             |  | 2012 |        |   | 2011 |  
|---------------------------- |  | ---- | ------ | - | ---- | -
|                             |  |      |        |   |      |  
|Hoot SA I, LLC               |  | $    | 15,409 |   |      | $
|Chanticleer Foundation, Inc. |  |      | 10,750 |   |      |  
|Chanticleer Investors, LLC   |  |      | 4,045  |   |      |  
|Other                        |  |      | (91    | ) |      |  
|                             |  | $    | 30,113 |   |      | $



Due from related parties



The
Company has earned income from and made advances to related parties. The amounts owed to the Company as of March 31, 2012 and
December 31, 2011 are as follows:



|                                |  | 2012 |        |  | 2011 |  
|------------------------------- |  | ---- | ------ |  | ---- | -
|                                |  |      |        |  |      |  
|Chanticleer Investors II, LLC   |  | $    | 1,485  |  |      | $
|Chanticleer Dividend Fund, Inc. |  |      | 74,281 |  |      |  
|Hoot SA II and IV, LLC's        |  |      | 1,913  |  |      |  
|                                |  | $    | 77,679 |  |      | $



Management income from affiliates



The Company
had management income from its affiliates in the three months ended March 31, 2012 and 2011, as follows:



|                                      |  | 2012 |   |  | 2011 |  
|------------------------------------- |  | ---- | - |  | ---- | -
|                                      |  |      |   |  |      |  
|Chanticleer Investors II, LLC         |  |      | - |  |      |  
|North American Energy Resources, Inc. |  |      | - |  |      |  
|                                      |  | $    | - |  |      | $



Chanticleer
Investors LLC



Investors
LLC loaned the Company $4,045 at March 31, 2012 and December 31, 2011.



Chanticleer
Investors II LLC



The
Company manages Investors II and earned management income of $22,896 in 2011. There was no accrual for 2012.



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.





20











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.



Efftec International,
Inc. ("Efftec")



The
Company's CEO became CEO and the sole director of Efftec during 2010 and the Company received 150,000 common shares and an option
to acquire 150,000 shares for management services. The shares and option were initially valued at $22,500, based on the trading
price of Efftec at the time.



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.



Chanticleer
Foundation, Inc.



Chanticleer
Foundation, Inc. is a Donor-Advised Fund whose governing body consists of Mr. Pruitt, a director of the Company and an employee
of the Company. The Foundation loaned the Company $10,750 during 2011.



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.



| | 12. | 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.



Operation
of restaurants ("Restaurants")

At
March 31, 2012, the Company has majority ownership of four restaurants and a management company in South Africa. Three of the
restaurants and the management company were operating for the entire first quarter of 2012 and the fourth restaurant opened in
February 2012. Majority ownership was acquired effective September 30, 2011 and these operations are consolidated with the Company’s
other operations since that date. At March 31, 2012, 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 in the second quarter of 2012. The operations
in Australia will be accounted for using the equity method. The Company has also started activity in Hungary, Brazil and Europe,
but operations have not yet begun.



21







Financial
information regarding the Company's segments is as follows for the three months ended March 31, 2012 and 2011.



Three
months ended March 31, 2012 (Restated Note 16)



|                                    |  | Management |           |   | Restaurants |   |           | Total | 
|----------------------------------- |  | ---------- | --------- | - | ----------- | - | --------- | ----- | 
|                                    |  |            |           |   |             |   |           |       | 
|Revenues                            |  | $          | 25,000    |   |             | $ | 1,387,495 |       | 
|                                    |  |            |           |   |             |   |           |       | 
|Interest expense                    |  | $          | 72,586    |   |             | $ | 112,524   |       | 
|                                    |  |            |           |   |             |   |           |       | 
|Depreciation and amortization       |  | $          | 2,190     |   |             | $ | 77,834    |       | 
|                                    |  |            |           |   |             |   |           |       | 
|Profit (loss)                       |  | $          | (546,099  | ) |             | $ | (220,204  | )     | 
|Investments and other               |  |            |           |   |             |   |           |       | 
|Non-controlling interest            |  |            |           |   |             |   |           |       | 
|                                    |  |            |           |   |             |   |           |       | 
|                                    |  |            |           |   |             |   |           |       | 
|Assets                              |  | $          | 937,255   |   |             | $ | 2,580,139 |       | 
|Investments                         |  |            |           |   |             |   |           |       | 
|                                    |  |            |           |   |             |   |           |       | 
|                                    |  |            |           |   |             |   |           |       | 
|Liabilities                         |  | $          | 4,581,483 |   |             | $ | 1,120,350 |       | 
|                                    |  |            |           |   |             |   |           |       | 
|Expenditures for non-current assets |  | $          | -         |   |             | $ | 316,683   |       | 



Three
months ended March 31, 2011



|                                    |  | Management |         |  | Restaurants |   |        | Total | 
|----------------------------------- |  | ---------- | ------- |  | ----------- | - | ------ | ----- | 
|                                    |  |            |         |  |             |   |        |       | 
|Revenues                            |  | $          | 441,313 |  |             | $ | -      |       | 
|                                    |  |            |         |  |             |   |        |       | 
|Interest expense                    |  | $          | 18,759  |  |             | $ | -      |       | 
|                                    |  |            |         |  |             |   |        |       | 
|Depreciation and amortization       |  | $          | 2,549   |  |             | $ | -      |       | 
|                                    |  |            |         |  |             |   |        |       | 
|Profit (loss)                       |  | $          | 200,564 |  |             | $ | 5,103  |       | 
|Investments and other               |  |            |         |  |             |   |        |       | 
|Non-controlling interest            |  |            |         |  |             |   |        |       | 
|                                    |  |            |         |  |             |   |        |       | 
|                                    |  |            |         |  |             |   |        |       | 
|Assets                              |  | $          | 408,571 |  |             | $ | 87,764 |       | 
|Investments                         |  |            |         |  |             |   |        |       | 
|                                    |  |            |         |  |             |   |        |       | 
|                                    |  |            |         |  |             |   |        |       | 
|Liabilities                         |  | $          | 565,291 |  |             | $ | -      |       | 
|                                    |  |            |         |  |             |   |        |       | 
|Expenditures for non-current assets |  | $          | -       |  |             | $ | -      |       | 



| | 13. | 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.





22







The
Company leases the land and buildings for its four restaurants in South Africa through its subsidiaries. The leases are for five
year terms and include options to extend the terms. We lease 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 four restaurants as of March 31are presented below:



|2013       |  | $ | 556,967   | 
|---------- |  | - | --------- | 
|2014       |  |   | 611,381   | 
|2015       |  |   | 671,264   | 
|2016       |  |   | 737,168   | 
|thereafter |  |   | 809,699   | 
|Totals     |  | $ | 3,386,479 | 



Rent
expense for the three months ended March 31, 2012 and March 31, 2011 was $137,791 and $6,300, respectively. Rent expense for the
three months ended March 31, 2012 for the South African restaurants was $131,266, and is included in the “Restaurant operating
expenses” of the Consolidated Statement of Operations. Rent expense for the three months ended March 31, 2012 for the management
segment was $6,525, and is included in the “General and administrative expense” of the Consolidated Statement of Operations.
Rent expense for the three months ended March 31, 2011 was all for the management segment.



| | 14. | 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 |        
|----------------------------- |  | -------------------------------- | -------
|                              |  |                                  |        
|                              |  |                                  |        
|                              |  |                                  |        
|                              |  |                                  |        
|                              |  | Recorded                         |        
|                              |  | value                            |        
|                              |  |                                  |        
|March 31, 2012                |  |                                  |        
|Assets:                       |  |                                  |        
|Available-for-sale securities |  | $                                | 212,735
|                              |  |                                  |        
|December 31, 2011             |  |                                  |        
|Assets:                       |  |                                  |        
|Available-for-sale securities |  | $                                | 318,353





At
March 31, 2012 and December 31, 2011, 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.





23







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



| | 15. | SUBSEQUENT
                                                                                                                        EVENTS
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------



EQUITY RAISE



The
Company filed a Form S-1 Registration Statement under the Securities Act of 1933. The Registration Statement, when effective,
would seek to raise $15 million with the issuance of 5 million units at $3.00 per unit, consisting of one share of Common Stock
and one five year redeemable warrant exercisable at $3.25 per share.



On
April 23, 2012, the Company filed a Form DEF 14 A Proxy Statement for a Special Meeting of the Company’s shareholders on
May 11, 2012. At the Special Meeting, stockholders will be asked (i) to authorize the Company to possibly amend its certificate
of incorporation (as amended, the “Company Certificate”) to effect a 1-for-2 reverse stock split (the “Reverse
Stock Split”); (ii) to authorize the Company to possibly amend the Company Certificate to decrease the number of authorized
shares of Company common stock (“Common Stock”) to 20,000,000 shares (the “Decrease in Authorized”); and
(iii) to transact any other business that properly comes before the Special Meeting or any adjournments thereof.



| | 16. | RESTATEMENT
                                                                                                                        OF 2011
                                                                                                                        AND 2012
                                                                                                                        FINANCIAL
                                                                                                                        INFORMATION
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



These
condensed consolidated financial statements restate certain items previously reported by the Company for the three months ended
March 31, 2012 and revise certain items previously reported by the Company in the notes to the consolidated financial statements
due to the events described below. For information regarding the restatement of the 2011 year see the Company’s Amended
Form 10-K/A filed with the SEC on December 4, 2012.



Restated
balances for 2012 and 2011 financial information items have been identified with the notation “Restated” where appropriate
and applicable.



Other
than the revising of the previously filed condensed consolidated financial statements relating to the restatement, these notes
to the condensed consolidated financial statements speak as of the filing date of the Company’s original Form 10-Q for the
three months ended March 31, 2012, filed on May 15, 2012, and these notes to the condensed consolidated financial statements have
not been updated to reflect other events occurring subsequent to the original filing date. These notes to the condensed consolidated
financial statements should be read in their historical context, except to the extent revised as a result of this restatement.



On
September 7, 2012, the audit committee of 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 African 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 changes
to the financial statements of the South African Operations and its impact on the condensed consolidated financial statements
of the Company for the period ended March 31, 2012, as a result of the audit of the South African Operations for the three months
ended December 31, 2011 and the subsequent review of the operations for the three months ended March 31, 2012.





24







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 a balance of approximately $58,136 and $42,109 of cash that
was misappropriated by the SA CFO as of the end of the first quarter of 2012 and the fourth quarter of 2011 (presented as “other
receivable” on the Company’s consolidated balance sheet as of March 31, 2012 and December 31, 2011), and approximately
$128,000 in total for the period from October 2011 through September 2012. As of December 10, 2012, approximately $41,000 has
been recovered by the Company and payment plans are in place for the remainder.



The
Company engaged outside South African tax experts in September 2012 to assist with compliance with Value Added Tax (VAT), payroll
taxes, and income taxes n South Africa. A voluntary disclosure agreement has been submitted and the Company is awaiting contract
from the South African governmental agency.



In
connection with the acquisition of assets as described in Note 3, 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 that the seller has fulfilled its tax and regulatory filing requirements, and whether or not the local authorities could
seek to recover any unpaid taxes or other amounts from the Company, its shareholders or others. The Company is not aware of any
known obligations for which the Company may be required to settle.



The
following tables include the consolidated balance sheet, statement of operations and statement of cash flows as of March 31, 2012,
and for the three months then ended and include the consolidated amounts previously reported, adjustments reflected in this amended
filing, and the restated amounts for 2012.



25









Condensed Consolidated Balance
Sheet



|                                                               |  | March 31, 2012 |           
|-------------------------------------------------------------- |  | -------------- | ----------
|                                                               |  | As Previously  |           
|                                                               |  | Reported       |           
|ASSETS                                                         |  |                |           
|Current assets:                                                |  |                |           
|Cash and cash equivalents                                      |  | $              | 182,240   
|Accounts receivable                                            |  |                | 29,688    
|Other receivable                                               |  |                | -         
|Inventory                                                      |  |                | 119,903   
|Due from related parties                                       |  |                | 77,679    
|Prepaid expenses                                               |  |                | 227,248   
|TOTAL CURRENT ASSETS                                           |  |                | 636,758   
|Property and equipment, net                                    |  |                | 2,746,611 
|Intangible assets, net                                         |  |                | 776,415   
|Investments at fair value                                      |  |                | 212,735   
|Other investments                                              |  |                | 1,707,545 
|Deposits and other assets                                      |  |                | 3,980     
|TOTAL ASSETS                                                   |  | $              | 6,084,044 
|                                                               |  |                |           
|LIABILITIES AND STOCKHOLDERS' EQUITY                           |  |                |           
|Current liabilities:                                           |  |                |           
|Current maturities of long-term debt and notes
    payable     |  | $              | 1,185,616 
|Convertible notes payable                                      |  |                | 2,725,000 
|Accounts payable anc accrued expenses                          |  |                | 438,250   
|Other current liabilities                                      |  |                | 383,007   
|Deferred rent                                                  |  |                | -         
|Current maturities of capital leases payable                   |  |                | -         
|Income taxes payable                                           |  |                | 17,293    
|Due to related parties                                         |  |                | 30,204    
|TOTAL CURRENT LIABILITIES                                      |  |                | 4,779,370 
|Deferred rent                                                  |  |                | -         
|Other liabilities                                              |  |                | -         
|Long-term debt and capital leases, less current
    maturities |  |                | 233,499   
|TOTAL LIABILITIES                                              |  |                | 5,012,869 
|Commitments and contingencies (Note 13)                        |  |                |           
|                                                               |  |                |           
|Stockholders' equity:                                          |  |                |           
|Common stock                                                   |  |                | 301       
|Additional paid in capital                                     |  |                | 6,483,001 
|Other comprehensive income (loss)                              |  |                | (58,232   
|Non-controlling interest                                       |  |                | 1,773,446 
|Accumulated deficit                                            |  |                | (6,600,921
|Less treasury stock                                            |  |                | (526,420  
|                                                               |  |                | 1,071,175 
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                     |  | $              | 6,084,044 



26







Condensed Consolidated Statements
of Operations



|                                                                                                       |  | Three Months Ended March
    31, 2012 |          
|------------------------------------------------------------------------------------------------------ |  | ------------------------------------- | ---------
|                                                                                                       |  | As Previously                         |          
|                                                                                                       |  | Reported                              |          
|Revenue:                                                                                               |  |                                       |          
|Restaurant sales, net                                                                                  |  | $                                     | 1,348,987
|Management fee income - non-affiliates                                                                 |  |                                       | 25,000   
|Management fee income - affiliates                                                                     |  |                                       | -        
|Total revenue                                                                                          |  |                                       | 1,373,987
|Expenses:                                                                                              |  |                                       |          
|Restaurant cost of sales                                                                               |  |                                       | 496,549  
|Restaurant operating expenses                                                                          |  |                                       | 615,769  
|Restaurant pre-opening expenses                                                                        |  |                                       | 66,120   
|General and administrative expense                                                                     |  |                                       | 481,273  
|Depreciation and amortization                                                                          |  |                                       | 108,612  
|Total
    expenses                                                                                     |  |                                       | 1,768,323
|Loss from operations                                                                                   |  |                                       | (394,336 
|Other income (expense)                                                                                 |  |                                       |          
|Equity in earnings (losses) of investments                                                             |  |                                       | (10,538  
|Interest expense                                                                                       |  |                                       | (177,218 
|Total
    other income (expense)                                                                       |  |                                       | (187,756 
|Net loss before income taxes                                                                           |  |                                       | (582,092 
|Provision
    for income taxes                                                                         |  |                                       | 3,816    
|Net loss before non-controlling interest                                                               |  |                                       | (585,908 
|Non-controlling interest                                                                               |  |                                       | 17,795   
|Net loss                                                                                               |  |                                       | (568,113 
|Other comprehensive income (loss):                                                                     |  |                                       |          
|Unrealized
    gain (loss) on available-for-sale securities (none applies to non-controlling interest) |  |                                       | (105,618 
|Foreign
    translation losses                                                                         |  |                                       | (1,279   
|Other
    comprehensive loss                                                                           |  | $                                     | (675,010 
|                                                                                                       |  |                                       |          
|Net
    earnings (loss) per share, basic and diluted                                                   |  | $                                     | (0.23    
|Weighted average shares
    outstanding                                                                |  |                                       | 2,498,891



27







|Condensed Consolidated Statements
    of Cash Flows
|---------------------------------------------------



|                                                                                |  | Three Months Ended March
    31, 2012 |          
|------------------------------------------------------------------------------- |  | ------------------------------------- | ---------
|                                                                                |  | As Previously                         |          
|                                                                                |  | Reported                              |          
|Cash flows from operating activities:                                           |  |                                       |          
|Net loss                                                                        |  | $                                     | (568,113 
|Adjustments to reconcile
    net loss to net cash used in operating activities: |  |                                       |          
|Non-controlling interest                                                        |  |                                       | (17,795  
|Services rendered in exchange for investment
    securities                     |  |                                       | -        
|Depreciation and amortization                                                   |  |                                       | 108,612  
|Equity in (earnings) loss of investments                                        |  |                                       | 10,538   
|Amortization of warrants                                                        |  |                                       | 23,495   
|(Increase) decrease in accounts and other receivables                           |  |                                       | 74,294   
|(Increase) decrease in prepaid expenses and
    other assets                    |  |                                       | (15,471  
|(Increase) decrease inventory                                                   |  |                                       | (60,637  
|Increase (decrease) in accounts payable and
    accrued expenses                |  |                                       | 149,163  
|Increase (decrease) in income taxes payable                                     |  |                                       | 2,685    
|Advance from related party for working capital                                  |  |                                       | -        
|Increase (decrease) in
    deferred rent                                        |  |                                       | -        
|Net cash used by operating
    activities                                       |  |                                       | (293,229 
|                                                                                |  |                                       |          
|Cash flows from investing activities:                                           |  |                                       |          
|Proceeds from non-controlling interest                                          |  |                                       | -        
|Purchase of investments                                                         |  |                                       | (134,959 
|Franchise fees incurred                                                         |  |                                       | (312,674 
|Purchase of property and
    equipment                                          |  |                                       | (339,977 
|Net cash provided (used)
    by investing activities                            |  |                                       | (787,610 
|                                                                                |  |                                       |          
|Cash flows from financing activities:                                           |  |                                       |          
|Loan proceeds                                                                   |  |                                       | 1,113,000
|Other liabilities                                                               |  |                                       | -        
|Loan and capital lease repayment                                                |  |                                       | (1,849   
|Net cash provided by financing
    activities                                   |  |                                       | 1,111,151
|Effect of exchange rate changes on cash                                         |  |                                       | -        
|Net increase in cash and cash equivalents                                       |  |                                       | 30,312   
|Cash and cash equivalents,
    beginning of year                                |  |                                       | 151,928  
|Cash and cash equivalents,
    end of year                                      |  | $                                     | 182,240  





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 450 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 the net proceeds from the upcoming offering, in South Africa, Brazil, Hungary, Australia and Europe.



Accordingly,
we operate in two business segments; Hooters franchise restaurants and our legacy investment management and consulting services
businesses.



29







RESTAURANT
OPERATIONS



The
following is a condensed statement of operations for our restaurant operations, which currently consists of four Hooters locations
in South Africa.





|                                                                          |  | (1)    |         |   | (2)          |   |         | (3)      |  |   | (4)                      |   |  |                            |        
|------------------------------------------------------------------------- |  | ------ | ------- | - | ------------ | - | ------- | -------- |  | - | ------------------------ | - |  | -------------------------- | -------
|                                                                          |  | Durban |         |   | Johannesburg |   |         | CapeTown |  |   | Emperors
    
    Palace |   |  | Total
    
    Restaurants |        
|Revenues                                                                  |  | $      | 269,660 |   |              | $ | 515,106 |          |  | $ | 165,672                  |   |  | $                          | 437,057
|Cost of Sales                                                             |  |        | 125,573 |   |              |   | 202,767 |          |  |   | 46,061                   |   |  |                            | 207,150
|Gross Profit                                                              |  |        | 144,087 |   |              |   | 312,339 |          |  |   | 119,611                  |   |  |                            | 229,907
|                                                                          |  |        |         |   |              |   |         |          |  |   |                          |   |  |                            |        
|Recurring expenses:                                                       |  |        |         |   |              |   |         |          |  |   |                          |   |  |                            |        
|Operating expenses, including management fees eliminated in consolidation |  |        | 166,527 |   |              |   | 262,062 |          |  |   | 128,788                  |   |  |                            | 247,047
|General and administrative expenses                                       |  |        | 13,150  |   |              |   | 24,660  |          |  |   | 8,212                    |   |  |                            | 20,993 
|Other expenses (income)                                                   |  |        | -       |   |              |   | -       |          |  |   | -                        |   |  |                            | -      
|Interest expense                                                          |  |        | 1,857   |   |              |   | 2,855   |          |  |   | 9,046                    |   |  |                            | -      
|Depreciation and amortization                                             |  |        | 12,803  |   |              |   | 30,589  |          |  |   | 22,247                   |   |  |                            | 12,196 
|Income taxes                                                              |  |        | -       |   |              |   | -       |          |  |   | -                        |   |  |                            | -      
|                                                                          |  |        | 194,337 |   |              |   | 320,166 |          |  |   | 168,293                  |   |  |                            | 280,236
|Net income (loss) before non-recurring expenses                           |  |        | (50,250 | ) |              |   | (7,827  | )        |  |   | (48,682                  | ) |  |                            | (50,329
|Pre-opening costs                                                         |  |        | -       |   |              |   | -       |          |  |   | -                        |   |  |                            | -      
|Net income (loss)                                                         |  | $      | (50,250 | ) |              | $ | (7,827  | )        |  | $ | (48,682                  | ) |  | $                          | (50,329
|                                                                          |  |        |         |   |              |   |         |          |  |   |                          |   |  |                            |        
|Loss from management company not absorbed above                           |  |        |         |   |              |   |         |          |  |   |                          |   |  |                            |        
|Total South Africa restaurants                                            |  |        |         |   |              |   |         |          |  |   |                          |   |  |                            |        





|(1) Durban location opened in December 2009.          
|------------------------------------------------------
|(2) Johannesburg location opened in June 2010.        
|(3) CapeTown location opened in June 2011.            
|(4) Emperors Palace location opened mid-February 2012.



We
expect net income for the four stores to continue to improve for the remainder of 2012. The Emperor’s Palace location was
our first location opened since we took over operational control, and we expect this location to continue and at its current pace.



LIQUIDITY
AND CAPITAL RESOURCES AND GOING CONCERN



Historical information:



At
March 31, 2012 and December 31, 2011, the Company had restated current assets of $739,658 and $641,963; current liabilities of
$5,087,875 and $3,720,486; and a working capital deficit of $4,348,217 and $3,078,523, respectively. The Company incurred a loss
of $703,785 during the three months ended March 31, 2012 and had an unrealized loss from available-for-sale securities of $105,618
and foreign currency translation losses of $8,714, resulting in a comprehensive loss of $818,117.



The
Company's corporate general and administrative expenses averaged approximately $295,000 per quarter during 2011 and increased
to $481,000 in the current quarter as we expanded our footprint internationally.



Effective
October 1, 2011, the Company acquired majority control of the restaurants in South Africa and began consolidating these operations.
The Company also will share 49% of the profits in our Hooters location opened in January 2012 in Campbelltown, Australia, a suburb
of Sydney.





30







In
addition, the Company has a note with a balance at March 31, 2012 of $241,115 owed to its bank which is due in August 2013 and
a line of credit with its bank with a balance at March 31, 2012 of $1,178,000 (total available $2,000,000) due on August 20, 2012.
We also have convertible notes payable with certain investors with a balance at March 31, 2012 of $2,725,000 with maturity dates
from January 22 through June 26, 2012. None of the noteholders whose notes have matured have taken any action to seek to enforce
their notes. As of May 1, 2012, there are $975,000 of notes that have matured. The notes bear interest at an 18% annualized rate.
In addition, the Company has a note with a balance at March 31, 2012 of $241,115 owed to its bank which is. The Company plans
to continue to use limited partnerships, if the Company’s contemplated raise is not completed, to fund its share of costs
for additional Hooters restaurants.



The
Company expects to meet its obligations in 2012 with some or all of the following:



| | · | Proceeds
                                                                                                                             from
                                                                                                                             the
                                                                                                                             sale
                                                                                                                             of
                                                                                                                             units
                                                                                                                             (consisting
                                                                                                                             of
                                                                                                                             common
                                                                                                                             stock
                                                                                                                             and
                                                                                                                             warrants).
                                                                                                                             The
                                                                                                                             Company
                                                                                                                             filed
                                                                                                                             an
                                                                                                                             S-1
                                                                                                                             registration
                                                                                                                             statement
                                                                                                                             (which
                                                                                                                             has
                                                                                                                             yet
                                                                                                                             to
                                                                                                                             go
                                                                                                                             effective)
                                                                                                                             to
                                                                                                                             raise
                                                                                                                             up
                                                                                                                             to
                                                                                                                             $15,000,000;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

| | · | The
                                                                                                                             Company
                                                                                                                             received
                                                                                                                             $100,000
                                                                                                                             in
                                                                                                                             January
                                                                                                                             2012
                                                                                                                             as
                                                                                                                             an
                                                                                                                             annual
                                                                                                                             fee
                                                                                                                             for
                                                                                                                             its
                                                                                                                             CEO
                                                                                                                             sitting
                                                                                                                             on
                                                                                                                             the
                                                                                                                             Board
                                                                                                                             of
                                                                                                                             Hooters
                                                                                                                             of
                                                                                                                             America
                                                                                                                             and
                                                                                                                             expect
                                                                                                                             to
                                                                                                                             continue
                                                                                                                             to
                                                                                                                             receive
                                                                                                                             this
                                                                                                                             fee
                                                                                                                             for
                                                                                                                             the
                                                                                                                             next
                                                                                                                             three
                                                                                                                             years
                                                                                                                             based
                                                                                                                             on
                                                                                                                             the
                                                                                                                             current
                                                                                                                             agreement;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

| | · | Borrow
                                                                                                                             additional
                                                                                                                             funds
                                                                                                                             on
                                                                                                                             its
                                                                                                                             existing
                                                                                                                             line
                                                                                                                             of
                                                                                                                             credit;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

| | · | Convert
                                                                                                                             its
                                                                                                                             convertible
                                                                                                                             notes
                                                                                                                             payable
                                                                                                                             into
                                                                                                                             common
                                                                                                                             stock.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



If
any or all of 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 plans to use the funding from the S-1 Registration to complete its expansion plans in South Africa, Brazil, Australia,
Hungary and Europe. The Company has used short-term financing to meet the preliminary requirements of its planned expansion, principally
in South Africa and Australia. If the Company is unable to obtain the funding from the S-1 Registration, 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 2012, we
expect to open one restaurant in each of the following countries – Australia (in addition to the one already opened in February
2012), Brazil, Hungary and South Africa. The Company expects the total cash requirements for these restaurants to be approximately
$3.3 million, of which approximately $450,000 has been paid as of March 31, 2012.



In addition,
we expect general and administrative expenses to be approximately $1.8-$2.0 million for 2012.



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.





31







Other prospective sources for and
uses of cash:



If the Company
is unable to obtain the funding from its Offering, 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.



As discussed
elsewhere in this Form 10-Q/A, effective October 1, 2011, the Company acquired majority control of the restaurants in South Africa
and began consolidating these operations. Previously all restaurant operations were accounted for using the equity method.



Comparison
of three months ended March 31, 2012 (Restated Note 16) and 2011



Revenue



Revenue
amounted to $1,412,495 in the three months ended March 31, 2012 and $441,313 in the year earlier period.



Restaurant
sales, net amounted to $1,387,495 for our four locations in South Africa, one of which opened to the public on February 17, 2012.



Revenues
for the management business for the three months ended March 31, 2012 amounted to $25,000 and $441,313 in the year earlier period.
Cash revenues were $25,000 and $416,667 in the three months ended March 31, 2012 and 2011, respectively. The cash revenues for
the management business in 2011was from a fee of $400,000 received in January 2011 for our services in facilitating the acquisition
of HOA and TW plus the accrual of $16,667 for the annual $100,000 fee received in January 2012. In the three months ended March
31, 2012 the cash revenue of $25,000 represents three months of the Company’s annual payment from HOA of $100,000, which
is due in January each year while Mr. Pruitt serves on its board.  The Company also recorded an accrual of $22,896 for
management fees from Investors II in 2011. Non-cash revenues in the three months ended March 31, 2011 of $1,750 was recognized
from the receipt of securities for our services.



The
fair value of the equity instruments for management fees received was determined based upon the stock prices as of the date we
reached an agreement with the third party. The terms of the securities are not subject to adjustment after the measurement date.
See Note 4 of the consolidated financial statements for details.



Restaurant
cost of sales



Restaurant cost
of sales amounted to $581,551, or 41.9% of restaurant net sales. We expect the percentage to remain approximately the same in
2012 as we expand our business in South Africa and other countries.



Restaurant
operating expenses



Restaurant operating
expenses amounted to $769,332, or 55.4% of restaurant net sales. 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 $40,721 incurred for the opening of our location at the Emperor’s Palace Casino in Johannesburg, South
Africa in February 2012.



32







General and Administrative Expense
(“G&A”)



G&A
amounted to $511,522 in the three months ended March 31, 2012 and $224,458 in the year earlier period. The more significant components
of G&A are summarized as follows:



|                                      |  | 2012 |         |  | 2011 |  
|------------------------------------- |  | ---- | ------- |  | ---- | -
|                                      |  |      |         |  |      |  
|Professional fees                     |  | $    | 59,910  |  |      | $
|Payroll and benefits                  |  |      | 201,266 |  |      |  
|Consulting and investor relation fees |  |      | 118,597 |  |      |  
|Travel and entertainment              |  |      | 42,966  |  |      |  
|Accounting and auditing               |  |      | 42,700  |  |      |  
|Other G&A                             |  |      | 46,083  |  |      |  
|                                      |  | $    | 511,522 |  |      | $



G&A
costs are expected to range from $400-$500,000 per quarter for the remainder of 2012, 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.



Payroll
and benefits increased $82,517 in 2012 from 2011 primarily from the addition of restaurant management personnel beginning in the
fourth quarter of 2011.



Consulting
and investor relations fees increased $101,953 from 2012 to 2011 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 $0 and $25,000 in 2012 and 2011, respectively. Non-cash amortization of warrant expense for services were $23,495 and $0
in 2012 and 2011, respectively.



Travel
and entertainment increased $29,780 as Company personnel, primarily the CEO, traveled to increase our company awareness and lockdown
financing and partners for the restaurant locales.



Depreciation
and amortization



Depreciation
expense for the three months ended March 31, 2012 and 2011 amounted to $76,265 and $2,549, respectively. The restaurant segment
for the three months ended March 31, 2012 and 2011 amounted to $74,075 and $0, respectively, and the management business amounted
to $2,190 and $2,549, respectively.



Amortization
expense for the three months ended March 31, 2012 for the restaurant businesses related to franchise fees was $3,759. There was
no amortization expense in 2011.



OTHER INCOME
(EXPENSE)



Other
income (expense) consisted of the following at March 31, 2012 and 2011:



|                                           |  | 2012 |          |   | 2011 |  
|------------------------------------------ |  | ---- | -------- | - | ---- | -
|Other income (expense):                    |  |      |          |   |      |  
|Equity in earnings (losses) of investments |  | $    | (10,538  | ) |      | $
|Realized gains from sale of investments    |  |      | -        |   |      |  
|Interest expense                           |  |      | (185,110 | ) |      |  
|Interest income                            |  |      | -        |   |      |  
|Miscellaneous income                       |  |      | -        |   |      |  
|                                           |  | $    | (195,648 | ) |      | $





33







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 2012 of $10,538, and income from the
Hoot SA partnerships in 2011 of $5,103.



Realized Gains from Sale of Investments



Realized
gains are recorded when investments are sold and include transactions in 2011 from a gain on sales of DineOut.



Interest
Expense



Interest
expense increased by $166,351 in 2012 from 2011 primarily due to the addition in 2011 of a line of credit with a balance as of
March 31, 2012 of $1,178,000 and convertible notes payable in the amount of $1,725,000, offset by the conversion of $686,500 of
convertible notes payable from 2010.



Interest
Income



Interest
income in 2012 decreased $4,541 as 2011 includes earnings from Investors for one month, compared to 2012 which had none.



| | 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.



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 March 31, 2012. Our management
has determined that, as of March 31, 2012, the Company's disclosure controls and procedures are ineffective.



In
connection with the preparation of  its  quarterly report for the period ended March 31, 2012, the
Company’s management evaluated the effectiveness of the design and operation of our disclosure controls and procedures.
Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls
and procedures were ineffective as of March 31, 2012, as a result of the existence of a material weakness in our
internal controls over financial reporting related to the Company’s South African subsidiaries.



Since September
2012, the Company has made progress in improving its disclosure controls and procedures. The Company has taken, and are taking,
the following actions to remediate the remaining material weaknesses in our internal control over financial reporting that existed
at that date: (i) appointed a new South African CFO; (ii) improve segregation of duties; and (iii) adopt sufficient written policies
and procedures for accounting and financial reporting.



The Company
continues to strive to improve processes to enable them to provide complete and accurate public disclosure. Management believes
they will not be able to conclude that the Company’s disclosure controls and procedures are effective until the material
weaknesses have been fully remediated.



To address
the material weaknesses listed above, management performed analyses and post-closing procedures designed to ensure the Company’s
condensed consolidated financial statements were prepared in accordance with U.S. GAAP. These procedures included documentation
and testing of processes, data validation procedures from the systems into the general ledger, testing of systems, validation
of results, disclosure review, and other analytics. As a result, management believes the condensed consolidated financial statements
included in this report fairly present, in all material respects, our financial position, results of operations and cash flows
for the period ended March 31, 2012.



Changes
in internal control over financial reporting



There
have been no significant changes in internal controls or in other factors that could significantly affect these controls during
the quarter ended March 31, 2012, including any corrective actions with regard to significant deficiencies and material weaknesses.



34







PART
II – OTHER INFORMATION



| | ITEM 1: | LEGAL
                                                                                                                       PROCEEDINGS
| | ------- | ----------------------------------------------------------------------------------------------------------------------------------------



Notapplicable.



| | 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: | SUBMISSION
                                                                                                                   OF MATTERS
                                                                                                                   TO A VOTE OF
                                                                                                                   SECURITY HOLDERS
| | ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Not
applicable.



| | ITEM 5: | OTHER
                                                                                                                   INFORMATION
| | ------- | ------------------------------------------------------------------------------------------------------------------------------------



None.



| | ITEM 6: | EXHIBITS
| | ------- | --------



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



| | 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
| | ------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



35







SIGNATURE



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: | December 17, 2012 |  | By:                       
|      |                   |  | Michael D. Pruitt,        
|      |                   |  | Chief Executive Officer   
|      |                   |  |                           
|      |                   |  | /s/ Eric S. Lederer       
|      |                   |  | Eric S. Lederer           
|      |                   |  | Chief Financial Officer   
|      |                   |  |                           

36