Quarterly report pursuant to Section 13 or 15(d)

Discontinued operations

v2.4.1.9
Discontinued operations
 3 Months Ended
Mar. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued operations
Discontinued operations:
Management decided to cease operations for the following entities in 2014: Miami Services and Tenjune.
 
On May 1, 2014 the Company entered into a settlement agreement and mutual general release with the landlord of the Bagatelle in Las Vegas, which closed in 2014. In connection with this release, the Company agreed to make certain payments to the landlord and on May 22, 2014 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 March 31, 2015 and December 31, 2014:
 
 
March 31, 
 2015
 
December 31, 
 2014
 
 
 
 
Cash and cash equivalents
$
1,332

 
$
1,312

Accounts receivable
—

 
2,415

Inventory
—

 
15,609

Prepaid expenses and other current assets
47,556

 
48,340

Due from related parties
811,403

 
814,227

Assets of discontinued operations - current
860,291

 
881,903

Property and equipment, net
169,175

 
169,175

Security deposits
75,000

 
75,000

Assets of discontinued operations - long term
244,175

 
244,175

Accounts payable and accrued liabilities
534,323

 
551,266

Due to related parties
3,653,969

 
3,654,552

Liabilities of discontinued operations - current
4,188,292

 
4,205,818

Deferred rent payable
—

 
—

Net assets
$
(3,083,826
)
 
$
(3,079,740
)

  
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 months ended March 31, 2015 and 2014:
 
 
Three Months Ended March 31,
 
2015
 
2014
 
 
 
 
Revenue
$
—

 
$
102,330

Costs and Expenses
3,138

 
1,027,504

Net income loss from discontinued operations
$
(3,138
)
 
$
(925,174
)