Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.7.0.1
Segment Reporting
3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Segment Reporting

NOTE 5 – SEGMENT REPORTING

 

The Company operated in two segments: Digital Media and Restaurant, which provide different products or services.

 

Digital Media Segment - Through our wholly owned subsidiaries SPYR APPS, LLC and SPYR APPS Oy, we develop, publish and co-publish mobile games, and then generate revenue through those games by way of advertising and in-app purchases.

 

Restaurant Segment - Through our wholly owned subsidiary E.A.J.: PHL, Airport, Inc. we owned and operated one “American Diner” theme restaurant called “Eat at Joe’s ® located in the Philadelphia International Airport. Eat at Joe’s ® menu included a variety of dishes including omelets, waffles and hotcakes, sandwiches, hot dogs, burgers, traditional Philly Steak sandwiches, custom wraps, fresh salads and a full complement of beverages and deserts, all made with top quality, fresh ingredients and all prepared to order.

 

Our lease in the Philadelphia Airport expired in April 2017 and will not be renewed. Concurrent with expiration of the lease the restaurant closed. The Company’s plan is to divest itself from its restaurant division and is considering spinning off the business, and issue a stock dividend to its shareholders; however, there is no assurance this can be completed. The Company is also exploring opportunities to license or franchise the name “Eat at Joe’s®” as well as merger and acquisition targets of other businesses in the food service industries. Pursuant to current accounting guidelines, the Company will report the restaurant segment as a discontinued operations starting in April 2017.

 

Revenue and expenses earned and charged between segments are eliminated in consolidation. Corporate expenses, interest income, interest expense, gains and losses on trading or marketable securities and income taxes are managed on a total company basis.

 

Information related to these segments is as follows:

REPORTABLE SEGMENTS
THREE MONTHS ENDED MARCH 31, 2017
(Unaudited)
                 
      Digital Media       Restaurants       Corporate       Consolidated  
                                 
Revenues   $ 52,000     $ 312,000     $ —       $ 364,000  
Cost of sales     —         99,000       —         99,000  
Research and development     113,000       —         —         113,000  
General and administrative     751,000       233,000       2,583,000       3,567,000  
Depreciation and amortization     3,000       15,000       12,000       30,000  
Operating loss   $ (815,000 )   $ (35,000 )   $ (2,595,000 )   $ (3,445,000 )
                                 
                                 
Current assets   $ 316,000     $ 378,000     $ 1,854,000     $ 2,548,000  
Property and equipment, net     6,000       15,000       163,000       184,000  
Intangible assets     —         —         17,000       17,000  
Other non-current assets     38,000       17,000       5,000       60,000  
Total assets   $ 360,000     $ 410,000     $ 2,039,000     $ 2,809,000  
                                 

 

REPORTABLE SEGMENTS
THREE MONTHS ENDED MARCH 31, 2016
(Unaudited)
                 
      Digital Media       Restaurants       Corporate       Consolidated  
                                 
Revenues   $ 35,000     $ 297,000     $ —       $ 332,000  
Cost of sales     —         97,000       —         97,000  
Research and development     75,000       —         —         75,000  
General and administrative     258,000       239,000       589,000       1,086,000  
Depreciation and amortization     8,000       19,000       11,000       38,000  
Operating income (loss)   $ (306,000 )   $ (58,000 )   $ (600,000 )   $ (964,000 )
                                 
                                 
Current assets   $ 137,000     $ 245,000     $ 6,463,000     $ 6,845,000  
Property and equipment, net     —         78,000       208,000       286,000  
Intangible assets     —         —         20,000       20,000  
Other non-current assets     —         17,000       6,000       23,000  
Total assets   $ 137,000     $ 340,000     $ 6,697,000     $ 7,174,000