Quarterly report pursuant to Section 13 or 15(d)

Discontinued operations

v2.4.0.8
Discontinued operations
 9 Months Ended
Sep. 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 22 nd 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 September 30, 2014 and December 31, 2013:

 

   

September 30,

     December 31,  
    2014     2013  
             
Cash and cash equivalents   $ 9,709     $ 3,318  
Accounts receivable     11,092       130,527  
Inventory     43,903       100,855  
Prepaid expenses and other current assets     77,511       244,816  
Assets of discontinued operations - current     142,214       479,516  
Property and equipment, net     1,567,058       1,322,698  
Security deposits     84,904       181,571  
Assets of discontinued operations - long term     1,651,962       1,504,269  
Accounts payable and accrued liabilities     409,573       1,022,031  
Due to related parties     2,489,146       2,500,960  
Liabilities of discontinued operations - current     2,898,718       3,522,991  
Deferred rent payable     686,503       661,709  
Net assets   $ (1,791,045 )   $ (2,200,915 )

 

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 nine months ended September 30, 2014 and 2013:

 

    Three months ended September 30,     Nine months ended September 30,    
    2014     2013     2014     2013    
                                   
Revenue   $ -     $ 580,981     $ 102,330     $ 3,475,429    
Costs and Expenses     (177,050 )     2,927,632       1,196,706       9,180,887    
                                   
Net income (loss) from discontinued operations   $ 177,050     $ (2,346,651 )   $ (1,094,376 )   $ (5,705,458 )