Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v3.3.1.900
Discontinued Operations
 12 Months Ended
Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

5. DISCONTINUED OPERATIONS

 

On December 31, 2014, management concluded it was in the best interest of the Company to exit the acquired Spoon restaurant in Dallas, Texas. The Company executed an agreement to sell the assets of Spoon Bar & Kitchen back to the original owner. In connection with this transaction, the Company reacquired 185,000 Stock Units that had been issued at acquisition in exchange for the asset transferred pursuant to the Asset Purchase Agreement. The stock was valued at $446,050 and the net assets were valued at $1,109,062, resulting in a loss of $683,012.

 

The results of operations and related non-recurring costs associated with Spoon have been presented as discontinued operations. Additionally, the assets and liabilities of the discontinued operations have been segregated in the accompanying consolidated balance sheets.

 

The operating results from the discontinued operations for the years ended December 31, 2015 and 2014 consisted of the following:

 

    2015     2014  
             
Total revenue   $ -     $ 1,207,688  
                 
Total operating income (expenses)     53,350       (1,445,636 )
                 
Non-cash charge on disposal of Spoon     -       (683,012 )
                 
Net gain (loss) from discontinued operations   $ 53,350     $ (920,960 )

 

As of December 31, 2015 and 2014, liabilities from discontinued operations totaled $124,043 and $177,393, respectively. The Company is continuing to monitor vendor and other claims related to resolution of the discontinued operations. The Company did not retain any assets or ongoing operating activities related to the discontinued operation.