Quarterly report pursuant to Section 13 or 15(d)

Rent And Lease Expense

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Rent And Lease Expense
6 Months Ended
Jun. 30, 2014
Rent And Lease Expense  
Rent and Lease Expense

NOTE 4 - 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 six months ended June 30, 2014 and 2013was $106,260and $108,315, 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.