Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.3.0.814
Segment Reporting
9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting

NOTE 7 – SEGMENT REPORTING

 

The Company operated in one segment during 2014, but concurrent with the acquisition of Franklin Networks, Inc. on February 23, 2015 (see Note 3), we operate in two segments: Digital Media and Restaurant, which provide different products or services.

 

Digital Media Segment - Through our wholly owned subsidiary Franklin Networks, Inc., the Company produces content for websites and attracts visitors to our sites, and then we programmatically sell advertising on our sites, which generates revenue. Through our wholly owned subsidiary SPYR APPS, LLC, the Company is expanding its digital media presence into the mobile app industry.

 

Restaurant Segment - Through our wholly owned subsidiary E.A.J.: PHL, Airport, Inc. we own and operate one “American Diner” theme restaurant called “Eat at Joe’s ® located in the Philadelphia International Airport. Eat at Joe’s menu includes 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.

 

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
NINE MONTHS ENDED SEPTEMBER 30, 2015
(Unaudited)
                 
    Digital Media   Restaurants   Corporate   Consolidated
                 
                 
Revenues   $ 392,553     $ 1,217,635     $ —       $ 1,610,188  
Cost of sales     —         358,248       —         358,248  
General and administrative     1,186,349       676,125       3,528,904       5,391,378  
Depreciation and amortization     41,423       55,720       11,092       108,235  
Operating income (loss)   $ (835,219 )   $ 127,542     $ (3,539,996 )   $ (4,247,673 )
                                 
                                 
Current assets     90,227     $ 271,126     $ 8,185,228     $ 8,546,581  
Fixed assets     6,715       115,445       129,826       251,986  
Intangible assets and goodwill     1,776,765       —         25,202       1,801,967  
Other non-current assets     —         16,610       5,689       22,299  
Total assets   $ 1,873,707     $ 403,181     $ 8,345,945     $ 10,622,833  

  

REPORTABLE SEGMENTS
NINE MONTHS ENDED SEPTEMBER 30, 2014
(Unaudited)
                 
    Digital Media   Restaurants   Corporate   Consolidated
                 
                 
Revenues   $ —       $ 1,113,305     $ —       $ 1,113,305  
Cost of sales     —         372,274       —         372,274  
General and administrative     —         609,937       558,624       1,168,561  
Depreciation and amortization     —         54,129       —         54,129  
Operating Loss   $ —       $ 76,965     $ (558,624 )   $ (481,659 )
                                 
                                 
Current assets   $ —       $ 220,855     $ 12,879,694     $ 13,100,549  
Fixed assets     —         155,250       —         155,250  
Intangible assets and goodwill     —         —         5,000       5,000  
Other non-current assets     —         15,000       —         15,000  
Total assets   $ —       $ 391,105     $ 12,884,694     $ 13,275,799  

 

REPORTABLE SEGMENTS
THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
                 
    Digital Media   Restaurants   Corporate   Consolidated
                 
2015                                
Revenues   $ 21,169     $ 444,507     $ —       $ 465,676  
Cost of sales     —         155,083       —         155,083  
General and administrative     514,885       254,207       379,579       1,148,671  
Depreciation and amortization     20,845       19,146       5,682       45,673  
Operating income (loss)   $ (514,561 )   $ 16,071     $ (385,261 )   $ (883,751 )
                                 
                                 
                                 
                                 
      Digital Media       Restaurants       Corporate       Consolidated  
                                 
2014                                
Revenues   $ —       $ 373,664     $ —       $ 373,664  
Cost of sales     —         140,725       —         140,725  
General and administrative     —         187,145       347,367       534,512  
Depreciation and amortization     —         17,997       —         17,997  
Operating Loss   $ —       $ 27,797     $ (347,367 )   $ (319,570 )