Quarterly report pursuant to Section 13 or 15(d)

Discontinued operations

v2.4.0.8
Discontinued operations
 6 Months Ended
Jun. 30, 2014
Discontinued operations [Abstract]  
Discontinued operations

Note 13 - Discontinued operations:

Management decided to cease operations for the following entities: One Atlantic City (2012), STKOUT Midtown (2013), BBCLV (2013), Heraea (2013) and Tenjune (2014).

 

On May 1, 2014 the Company entered into a settlement agreement and mutual general release with the landlord of the Bagatelle in Las Vegas location, which closed in 2013. In connection with this release, the Company agreed to make certain payments to the landlord and on May 22nd made a payment for the remaining balance on an operating lease for certain equipment that was at the location.

 

On May 30, 2014 the Company entered into a termination, mutual release and settlement agreement with a third party in Las Vegas (“Owners”) for the management agreement for the Heraea property and the lease agreement for the Xi Shi property in Las Vegas. In connection with this release, the Company agreed to make certain payments to the Owners.

 

The following table shows the components of assets and liabilities that are classified as discontinued operations in the Company's consolidated balance sheets as of June 30, 2014 and December 31, 2013:

 

    June 30,     December 31,  
    2014     2013  
             
Cash and cash equivalents   $ 3,260     $ 3,318  
Accounts receivable     11,092       141,619  
Inventory     54,647       100,856  
Prepaid expenses and other current assets     68,469       386,739  
Assets of discontinued operations - current     137,468       632,532  
Property and equipment, net     1,609,787       1,201,389  
Security deposits     84,904       181,571  
Assets of discontinued operations - long term     1,694,691       1,382,960  
Accounts payable and accrued liabilities     726,416       1,015,814  
Due to related parties     2,420,604       1,754,857  
Liabilities of discontinued operations - current     3,147,020       2,770,671  
Deferred rent payable     678,238       661,709  
Net assets   $ (1,993,099 )   $ (1,416,888 )

 

Summarized operating results related to these entities are included in discontinued operations in the accompanying consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2014 and 2013:

 

Three months ended June 30,   Six months ended June 30,  
2014   2013     2014     2013  
                             
Revenue   $ -     $ 1,636,971     $ 102,330     $ 2,894,448  
Costs and Expenses     346,252       3,103,099       1,373,756       6,253,256  
                                 
Net loss from discontinued operations   $ (346,252 )   $ (1,466,128 )   $ (1,271,426 )   $ (3,358,808 )