Quarterly report pursuant to Section 13 or 15(d)

Leases

v2.4.0.6
Leases
3 Months Ended
Mar. 31, 2012
Leases  
Leases of Lessor Disclosure [Text Block]

NOTE 6 - 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 under the lease which expires April 2017.  A construction security deposit of $15,000 was paid prior to construction.  Amount will be refunded upon completion of renovation.

           

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

 

Year Ended December 31,

 

 

Real Property

 

 

 

2011

 

  $      168,000

 

 

 

2012

 

          168,000

 

 

 

2013

 

          168,000

 

 

 

2014

 

          168,000

 

 

 

2015

 

          168,000

 

 

 

 

 

Total five year minimum lease payments 

 

  $      840,000

 

 

 

            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 2012.