Quarterly report pursuant to Section 13 or 15(d)

NOTE 6 - RENT AND LEASE EXPENSE

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NOTE 6 - RENT AND LEASE EXPENSE
9 Months Ended
Sep. 30, 2012
Related Party Transactions [Abstract]  
NOTE 6 - RENT AND LEASE EXPENSE

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.