Quarterly report pursuant to Section 13 or 15(d)

Discontinued operations

v3.3.0.814
Discontinued operations
 9 Months Ended
Sep. 30, 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 September 30, 2015 and December 31, 2014:
 
 
September 30, 
 2015
 
December 31, 
 2014
 
 
 
 
Other current assets
$
48,343

 
$
67,676

Due from related parties
806,846

 
814,227

Assets of discontinued operations - current
855,189

 
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
409,108

 
551,266

Due to related parties (1)
3,606,667

 
3,654,552

Liabilities of discontinued operations - current
4,015,775

 
4,205,818

 
 
 
 
Net assets
$
(2,916,411
)
 
$
(3,079,740
)
  
(1) Note - due to related parties represents amounts due to consolidating entities that are eliminated in consolidation.

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, 2015 and 2014:
 
 
Three Months Ended September 30,
 
Nine Months Ended 
 September 30,
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
Revenue
$
—

 
$
—

 
$
—

 
$
102,330

Costs and Expenses
(62,501
)
 
(177,050
)
 
(23,929
)
 
1,196,706

Net loss from discontinued operations, net of taxes
$
62,501

 
$
177,050

 
$
23,929

 
$
(1,094,376
)