Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.8.0.1
Discontinued Operations
9 Months Ended
Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

NOTE 7 – DISCONTINUED OPERATIONS

 

Through our other wholly owned subsidiary, E.A.J.: PHL Airport, Inc., we owned and operated the restaurant “Eat at Joe’s®,” which was located in the Philadelphia International Airport since 1997. Our lease in the Philadelphia Airport expired in April 2017. Concurrent with expiration of the lease the restaurant closed. Pursuant to current accounting guidelines, the restaurant segment is reported as a discontinued operations.

 

The following table summarizes the assets and liabilities of our discontinued restaurant segment's discontinued operations as of September 30, 2017 and December 31, 2016:

 

    September 30, 2017   December 31, 2016
Assets:                
   Accounts receivable, net   $ —       $ 13,000  
   Inventory     —         12,000  
   Prepaid expenses     —         25,000  
   Property and equipment, net     6,000       30,000  
   Other assets     2,000       17,000  
Total Assets   $ 8,000     $ 97,000  
                 
Liabilities:                
   Accounts payable and accrued liabilities     35,000       58,000  
Total Liabilities   $ 35,000     $ 58,000  

 

The following table summarizes the results of operations of our discontinued restaurant segment for the three and nine months ended September 30, 2017 and 2016 and is included in the condensed consolidated statements of operations as discontinued operations:

 

    For the Three Months Ended September 30,   For the Nine Months Ended September 30,
    2017   2016   2017   2016
                 
Revenues   $ —       $ 408,000     $ 421,000     $ 1,050,000  
Cost of sales     —         131,000       134,000       324,000  
          Gross Margin     —         277,000       287,000       726,000  
Expenses                                
   Labor and related expenses     —         119,000       178,000       353,000  
   Rent     —         62,000       82,000       191,000  
   Depreciation and amortization     —         15,000       20,000       52,000  
   Professional fees     23,000       2,000       26,000       5,000  
   Other general and administrative     5,000       53,000       94,000       155,000  
          Total Operating Expenses     28,000       251,000       400,000       756,000  
          Operating Income (Loss)     (28,000 )     26,000       (113,000 )     (30,000 )
Other Income (Expense)                                
   Loss on disposal of assets     —         —         (19,000 )     —    
Income (Loss) on discontinued operations   $ (28,000 )   $ 26,000     $ (132,000 )   $ (30,000 )