Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.7.0.1
Segment Reporting
12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting

NOTE 8 – SEGMENT REPORTING

 

The Company operated in one segment as of the beginning of 2015, but concurrent with the organization of SPYR APPS, LLC on March 24, 2015, it operates 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. The Company also recognizes revenues from fees received pursuant to licensing rights acquired during 2015 for two gaming applications.

 

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.

 

Our lease in the Philadelphia Airport is scheduled to expire in April 2017 and will not be renewed, and concurrent with expiration of the lease the restaurant the will close. The Company’s plan is to divest itself from its restaurant division and is considering spinning off the business, and issuing a stock dividend to its shareholders of record as of May 19, 2017, 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.

 

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
YEAR ENDED DECEMBER 31, 2016
 
                 
      Digital Media       Restaurants       Corporate       Consolidated  
                                 
Revenues   $ 139,000     $ 1,413,000     $ —       $ 1,552,000  
Cost of sales     —         421,000       —         421,000  
Research and Development     416,000       —         —         416,000  
General and administrative     2,519,000       949,000       4,333,000       7,801,000  
Depreciation and amortization     51,000       68,000       47,000       166,000  
Operating loss   $ (2,847,000 )   $ (25,000 )   $ (4,380,000 )   $ (7,252,000 )
                                 
                                 
Current assets   $ 290,000     $ 387,000     $ 2,892,000     $ 3,569,000  
Property and equipment, net     8,000       30,000       173,000       211,000  
Intangible assets     —         —         18,000       18,000  
Other non-current assets     40,000       17,000       5,000       62,000  
Total assets   $ 338,000     $ 434,000     $ 3,088,000     $ 3,860,000  

 

 

REPORTABLE SEGMENTS
YEAR ENDED DECEMBER 31, 2015
 
                 
      Digital Media       Restaurants       Corporate       Consolidated  
                                 
Revenues   $ 6,000     $ 1,591,000     $ —       $ 1,597,000  
Cost of sales     —         473,000       —         473,000  
General and administrative     414,000       918,000       3,675,000       5,007,000  
Depreciation and amortization     —         74,000       24,000       98,000  
Operating income (loss)   $ (408,000 )   $ 126,000     $ (3,699,000 )   $ (3,981,000 )
                                 
                                 
Current assets   $ 29,000     $ 284,000     $ 6,992,000     $ 7,305,000  
Property and equipment, net     6,000       97,000       172,000       275,000  
Intangible assets     —         —         21,000       21,000  
Other non-current assets     80,000       17,000       5,000       102,000  
Total assets   $ 115,000     $ 398,000     $ 7,190,000     $ 7,703,000