Annual report pursuant to Section 13 and 15(d)

Rent And Lease Expense

Rent And Lease Expense
12 Months Ended
Dec. 31, 2013
Rent And Lease Expense  
Rent And Lease Expense



The Company’s wholly-owned subsidiary E.A.J. PHL Airport, Inc. leases approximately 845 square feet in the Philadelphia Airport, Philadelphia, Pennsylvania pursuant to a lease dated April 30, 1997.  E.A.J. PHL Airport pays $14,000 per month basic rent plus percentage rent equal to 20% of gross revenues above $1,200,000 under the lease which expires April 2017.  Rent expense for the years ended 2013 and 2012 were $215,729 and $234,396, respectively. In addition to the minimum basic rent of $14,000 per month, rent expense also includes approximately $3,400 per month for other items charged by the landlord in connect with rent.


The minimum future lease payments under these leases for the next five years are:


Year Ended December 31,   Real Property
  2014     $ 168,000  
  2015       168,000  
  2016       168,000  
  2017       56,000  
  Total five year minimum lease payments       $ 560,000  


The lease generally provides that insurance, maintenance and tax expenses are obligations of the Company. It is expected that in the normal course of business, leases that expire will be renewed or replaced by leases on other properties.


During 2011, the restaurant was closed for renovation starting in February 2011 and reopening in May 2011. The Company paid a construction security deposit of $15,000 prior to construction. The Company expects the deposit to be refunded in 2014.