Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 9-May-14 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'EAT AT JOES LTD | ' |
Entity Central Index Key | '0000829325 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 136,627,710 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ' | ' |
Cash | $7,825,865 | $1,628,529 |
Accounts receivable | 2,487 | 1,093 |
Inventory | 16,500 | 16,500 |
Prepaid expense | 17,477 | 17,477 |
Security deposit | 15,000 | 15,000 |
Trading securities | 2,968,569 | 1,717,438 |
Available-for-sale securities | 10,793,820 | 9,089,608 |
Deferred income taxes - current | 758,000 | 758,000 |
Total Current Assets | 22,397,718 | 13,243,645 |
Property and equipment, net | 209,232 | 227,298 |
Deferred income taxes - non-current | 282,000 | 282,000 |
TOTAL ASSETS | 22,888,950 | 13,752,943 |
Current Liabilities: | ' | ' |
Accounts payable and accrued liabilities | 64,552 | 39,374 |
Due for stock purchase | 27,500 | ' |
Related party notes payable | 1,911,028 | 1,882,648 |
Total Current Liabilities | 2,003,080 | 1,922,022 |
Noncurrent related party notes payable | 8,680,183 | 8,562,355 |
Total Liabilities | 10,683,263 | 10,484,377 |
STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 20,000 Series E shares issued and outstanding | 2 | 2 |
Common stock, $0.0001 par value, 250,000,000 shares authorized; 136,627,710 and 136,627,710 issued and outstanding, respectively | 13,663 | 13,663 |
Additional paid-in capital | 14,049,717 | 14,049,717 |
Unrealized gain (loss) on available-for-sale securities | -6,562,471 | -4,860,759 |
Retained deficit | -8,420,166 | -15,655,575 |
Total Stockholders' Equity (Deficit) | 12,205,687 | 3,268,566 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | 22,888,950 | 13,752,943 |
Series E Preferred Stock | ' | ' |
STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 20,000 Series E shares issued and outstanding | $2 | $2 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 136,627,710 | 136,627,710 |
Common stock, shares outstanding | 136,627,710 | 136,627,710 |
Series E Preferred Stock | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 20,000 | 20,000 |
Preferred stock, outstanding | 20,000 | 20,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations And Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Statement [Abstract] | ' | ' |
Revenues | $337,171 | $277,328 |
Cost of revenues | 105,710 | 84,554 |
Gross Margin | 231,461 | 192,774 |
Operating Expenses: | ' | ' |
Labor and related expenses | 92,270 | 80,586 |
Rent | 52,431 | 56,188 |
Depreciation | 18,066 | 12,775 |
Other general and administrative | 192,611 | 95,042 |
Total Operating Expenses | 355,378 | 244,591 |
Net Operating Income (Loss) | -123,917 | -51,817 |
Other Income (Expense): | ' | ' |
Interest income | 1,238 | 143 |
Interest expense | 146,209 | 112,103 |
Unrealized gain (loss) on trading securities | 1,684,865 | 304,821 |
Gain (Loss) on sale of marketable securities | 5,819,432 | 105,335 |
Net Other Income (Expense) | 7,359,326 | 298,196 |
Net loss before income taxes | 7,235,409 | 246,379 |
Deferred Income tax (expense) benefit | ' | ' |
Net Income | 7,235,409 | 246,379 |
Other Comprehensive Income (Loss): | ' | ' |
Unrealized gain (loss) on available-for-sale securities (net of income tax of $0) | 1,701,712 | -422,520 |
Comprehensive Income (Loss) | $8,937,121 | ($176,141) |
Income Per Common Share: | ' | ' |
Income per Common Share – Basic | $0.05 | $0 |
Income per Common Share – Diluted | $0.05 | $0 |
Weighted Average Common Shares: | ' | ' |
Basic | 136,627,710 | 136,627,710 |
Diluted | 140,008,373 | 146,061,672 |
Consolidated_Statements_Of_Ope1
Consolidated Statements Of Operations And Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Statement [Abstract] | ' | ' |
Income tax | $0 | $0 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Statement of Cash Flows [Abstract] | ' | ' |
Net income for the period | $7,235,409 | $246,379 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation | 18,066 | 12,775 |
Unrealized (gain) loss on trading securities | -1,684,865 | -304,821 |
(Gain) loss on sale of marketable securities | -5,819,432 | -105,335 |
Decrease (increase) in receivables | 1,394 | -630 |
Decrease in prepaid expense | ' | -348 |
Increase in accrued interest payable | 146,208 | 112,103 |
(Decrease) increase in accounts payable and accrued liabilities | 52,678 | 6,832 |
Net Cash Provided by (Used) in Operating Activities | -53,330 | -31,089 |
Cash Flows From Investing Activities: | ' | ' |
Purchases of trading securities | 1,360,752 | 2,770 |
Purchases of available-for-sale securities | 565,000 | 22,500 |
Proceeds from sale of trading securities | 8,176,418 | 201,414 |
Purchase of property and equipment | ' | 273 |
Net Cash Provided by (Used) Investing Activities | 6,250,666 | 175,871 |
Cash Flows From Financing Activities: | ' | ' |
Repayment of notes, advances and related party payables | ' | 20,000 |
Net Cash (Used) by Financing Activities | ' | -20,000 |
Increase in Cash | 6,197,336 | 124,782 |
Cash at beginning of period | 1,628,529 | 382,946 |
Cash at end of period | 7,825,865 | 507,728 |
Supplemental Disclosure of Interest and Income Taxes Paid: | ' | ' |
Interest paid during the period | ' | 1,481 |
Income taxes paid during the period | ' | ' |
Supplemental Disclosure of Non-cash Investing and Financing Activities: | ' | ' |
Forgiveness of related party debt | ' | 301,937 |
Unrealized gain (loss) on available-for-sale | $1,701,712 | ($422,520) |
Organization_And_Summary_Of_Si
Organization And Summary Of Significant Accounting Policies | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Organization And Summary Of Significant Accounting Policies | ' | ||||||||||||||||
Organization And Summary Of Significant Accounting Policies | ' | ||||||||||||||||
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
This summary of accounting policies for Eat At Joe’s, Ltd. and subsidiaries is presented to assist in understanding the Company's financial statements. The accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements. | |||||||||||||||||
Interim Financial Statements | |||||||||||||||||
The unaudited financial statements as of March 31, 2014 and for the three month periods ended March 31, 2014 and 2013 reflect, in the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to fairly state the financial position and results of operations for the three months. Operating results for interim periods are not necessarily indicative of the results which can be expected for full years. | |||||||||||||||||
Organization | |||||||||||||||||
Eat At Joe’s Ltd. (Company) was incorporated on January 6, 1988, under the laws of the State of Delaware, as a wholly-owned subsidiary of Debbie Reynolds Hotel and Casino, Inc. (DRHC) (formerly Halter Venture Corporation or Halter Racing Stables, Inc.) a publicly-owned corporation. DRHC caused the Company to register 1,777,000 shares of its initial 12,450,000 issued and outstanding shares of common stock with the Securities and Exchange Commission on Form S-18. DRHC then distributed the registered shares to DRHC stockholders. | |||||||||||||||||
During the period September 30, 1988 to December 31, 1992, the Company remained in the development stage while attempting to enter the mining industry. The Company acquired certain unpatented mining claims and related equipment necessary to mine, extract, process and otherwise explore for kaolin clay, silica, feldspar, precious metals, antimony and other commercial minerals from its majority stockholder and other unrelated third-parties. The Company was unsuccessful in these start-up efforts and all activity was ceased during 1992 as a result of foreclosure on various loans in default and/or the abandonment of all assets. From 1992 until 1996 the Company had no operations, assets or liabilities. | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustment relating to recoverability and classification of recorded amounts of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. | |||||||||||||||||
The Company has generated a net income before taxes for the quarter ended March 31, 2014 of $7,235,409; however it had a loss from operations of $123,917. As of March 31, 2014, the Company had an accumulated deficit of $8,420,166. These conditions continue to raise substantial doubt as to the Company's ability to continue as a going concern. | |||||||||||||||||
The Company's continued existence is dependent upon its ability to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company. | |||||||||||||||||
Management’s plans include searching for and opening new restaurants in the future, utilizing company assets to maximize shareholder value and obtaining additional financing to fund payment of obligations and to provide working capital for operations and to finance future growth. The Company is actively pursuing alternative financing and has had discussions with various third parties, although no firm commitments have been obtained. In the interim, shareholders of the Company have committed to meeting its operating expenses. Management believes these efforts will generate sufficient cash flows from future operations to pay the Company’s obligations and realize other assets. There is no assurance any of these transactions will occur. | |||||||||||||||||
Nature of Business | |||||||||||||||||
The Company owns and operates a theme restaurant styled in an “American Diner” atmosphere. | |||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The consolidated financial statements include the accounts of Eat At Joe’s, LTD. And its wholly-owned subsidiaries, E.A.J. PHL Airport, Inc., a Pennsylvania corporation, E.A.J. Shoppes, Inc., a Nevada corporation, E.A.J. Cherry Hill, Inc., a Nevada corporation, E.A.J. Market East, Inc., a Nevada corporation, E.A.J. MO, Inc., a Nevada corporation, E.A.J. Walnut Street, Inc., a Nevada corporation, and 1398926 Ontario, Inc. and 1337855 Ontario, Inc., Ontario corporations. All significant intercompany accounts and transactions have been eliminated. | |||||||||||||||||
Inventories | |||||||||||||||||
Inventories consist of food, paper items and related materials and are stated at the lower of cost (first-in, first-out method) or market. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company generates revenue from the sale of food and beverage through its restaurants. Revenue is recognized upon receipt of payment. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The Company accounts for income taxes under the provisions of ASC 740 (formerly SFAS No. 109, “Accounting for Income Taxes”). ASC 740 requires a company to first determine whether it is more likely than not (which is defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more likely than not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. | |||||||||||||||||
Deferred income taxes are recognized for the tax consequences related to temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes at each year end, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized when, based on the weight of all available evidence, it is considered more likely than not that all, or some portion, of the deferred tax assets will not be realized. Income tax expense is the sum of current income tax plus the change in deferred tax assets and liabilities. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. | |||||||||||||||||
Depreciation | |||||||||||||||||
Office furniture, equipment and leasehold improvements are stated at cost. Depreciation and amortization are computed using the straight-line method over the estimated economic useful lives of the related assets as follows: | |||||||||||||||||
Furniture & fixtures | 5-10 years | ||||||||||||||||
Equipment | 5- 7 years | ||||||||||||||||
Computer equipment | 3 years | ||||||||||||||||
Leasehold improvements | 6-15 years | ||||||||||||||||
Maintenance and repairs are charged to operations; betterments are capitalized. The cost of property sold or otherwise disposed of and the accumulated depreciation thereon are eliminated from the property and related accumulated depreciation accounts, and any resulting gain or loss is credited or charged to income. | |||||||||||||||||
Recent Accounting Standards | |||||||||||||||||
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to: | |||||||||||||||||
- | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and | ||||||||||||||||
- | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | ||||||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 is not expected to have a material impact on our financial position or results of operations. | |||||||||||||||||
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations. | |||||||||||||||||
In July 2013, the FASB issued Accounting Standards Update 2013-11 Income Taxes (Topic 740) Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax loss or a tax credit carry-forward, except as follows. To the extent a net operating loss carry-forward, a similar tax loss or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. | |||||||||||||||||
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. | |||||||||||||||||
Earnings (Loss) Per Share | |||||||||||||||||
Basic loss per share has been computed by dividing the loss for the year applicable to the common stockholders by the weighted average number of common shares outstanding during the years. | |||||||||||||||||
Diluted net income per common share was calculated based on an increased number of shares that would be outstanding assuming that the preferred shares were converted to 3,380,663 and 9,433,962, common shares as of March 31, 2014 and 2013, respectively. | |||||||||||||||||
Pervasiveness of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. The Company maintains the majority of its cash balances with one financial institution, in the form of demand deposits. At March 31, 2014, the Company had cash deposits in one financial institution that were above FDIC limits of $250,000. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: | |||||||||||||||||
Level 1: | Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. | ||||||||||||||||
Level 2: | Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | ||||||||||||||||
Level 3: | Pricing inputs that are generally observable inputs and not corroborated by market data. | ||||||||||||||||
The carrying amount of the Company’s financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the short maturity of those instruments. The Company’s notes payable approximate the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at March 31, 2014. | |||||||||||||||||
The Company does not have any assets or liabilities measured at fair value on a non-recurring basis. | |||||||||||||||||
Investment in Marketable Securities | |||||||||||||||||
The Company’s securities investments that are bought and held for an indefinite period of time are classified as available-for-sale securities. Available-for-sale securities are purchased with the intent of selling them before they reach maturity and are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period excluded from earnings and recorded net of tax as a component of other comprehensive income. All of the Company’s available-for-sale securities are marketable securities and have no maturity date. When sold the cost of the securities is determined using the average purchase cost of the securities. On occasion the Company will transfer some of its available for sale securities to trading securities. When this occurs the unrealized gain or loss is immediately recognized in earnings. Trading securities are purchased with the intent of selling them in the short term. During the period ended March 31, 2014 the Company recognized a $348,750 unrealized gain on securities transferred from available for sale to trading. No securities have been transferred from trading to available for sale. The cost basis of the Company’s available-for-sale securities as of March 31, 2014 and December 31, 2013 was $4,231,350 and $4,228,850, respectively. | |||||||||||||||||
The Company’s securities investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings. | |||||||||||||||||
Investments in securities are summarized as follows: | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Gross | Gross | Net | |||||||||||||||
Unrealized | Unrealized | Unrealized | Fair | ||||||||||||||
Gain | Loss | Gain (Loss) | Value | ||||||||||||||
Trading securities | $ | 1,684,865 | $ | — | $ | 1,684,865 | $ | 2,968,569 | |||||||||
Available-for-sale securities | $ | 1,701,712 | $ | — | $ | 1,701,712 | $ | 10,793,820 | |||||||||
31-Dec-13 | |||||||||||||||||
Gross | Gross | Net | |||||||||||||||
Unrealized | Unrealized | Unrealized | Fair | ||||||||||||||
Gain | Loss | Gain (Loss) | Value | ||||||||||||||
Trading securities | $ | 4,966,872 | $ | 6,692,643 | $ | (1,725,771 | ) | $ | 1,717,438 | ||||||||
Available-for-sale securities | $ | 9,382,973 | $ | 998,874 | $ | 8,384,099 | $ | 9,089,608 | |||||||||
Results of operations for the quarter ended March 31, 2014 includes a gain of $1,684,865 on unrealized holding gains on trading securities. For the quarter ended March 31, 2014, other comprehensive income includes $1,701,712 for an unrealized holding gain on available-for-sale securities. | |||||||||||||||||
Realized gains and losses are determined on the basis of specific identification. During the quarter ended March 31, 2014 and 2013, sales proceeds and gross realized gains and losses on securities classified as available-for-sale securities and trading securities were: | |||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Trading securities: | |||||||||||||||||
Sales Proceeds | $ | 8,176,418 | $ | 201,414 | |||||||||||||
Gross Realized Losses | $ | (122,122 | ) | $ | (27,483 | ) | |||||||||||
Gross Realized Gains | $ | 5,941,554 | $ | 132,818 | |||||||||||||
Gain (loss) on sale of marketable securities | $ | 5,819,432 | $ | 105,335 | |||||||||||||
Available-for-sale securities: | 31-Mar-14 | 31-Mar-13 | |||||||||||||||
Sale Proceeds | $ | — | $ | — | |||||||||||||
Gross Realized Losses | $ | — | $ | — | |||||||||||||
Gross Realized Gains | $ | — | $ | — | |||||||||||||
The following table discloses the assets measured at fair value on a recurring basis and the methods used to determine fair value: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Fair Value at | Markets | Observable Inputs | Inputs | ||||||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Trading securities | $ | 2,968,569 | $ | 2,968,569 | $ | — | $ | — | |||||||||
Available-for-sale securities | $ | 10,793,820 | $ | 10,793,820 | $ | — | $ | — | |||||||||
Total | $ | 13,762,389 | $ | 13,762,389 | $ | — | $ | — | |||||||||
Generally, for all trading securities and available-for-sale securities, fair value is determined by reference to quoted market prices. |
Fixed_Assets
Fixed Assets | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Fixed Assets | ' | ||||||||
NOTE 2 - FIXED ASSETS | |||||||||
Fixed assets consisted of the following at: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Equipment | $ | 106,861 | $ | 106,861 | |||||
Furniture & fixtures | 3,964 | 3,964 | |||||||
Leasehold improvements | 274,637 | 274,637 | |||||||
Less: accumulated depreciation | (176,230 | ) | (158,164 | ) | |||||
Property and equipment, net | $ | 209,232 | $ | 227,298 | |||||
Depreciation expense for the quarter ended March 31, 2014 and 2013 was $18,066 and $12,775, respectively. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Related Party Transactions | ' | ||||||||||||
Related Party Transactions | ' | ||||||||||||
NOTE 3 - RELATED PARTY TRANSACTIONS | |||||||||||||
In prior years, Joseph Fiore, CEO of the Company, and Berkshire Capital, which is controlled by Mr. Fiore, paid expenses and made advances to the Company. All expenses paid on behalf of the company have been recorded in the consolidated statements of operations for the period incurred. At March 31, 2014 and December 31, 2013 $1,305,422 and $1,286,035, respectively of principle and accrued interest was due on this loan. | |||||||||||||
On September 14, 2007, the Company acquired 1,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $125,000, carrying an interest rate of 6% A.P.R. At March 31, 2014 and December 31, 2013, $137,316 and $135,276, respectively of principle and accrued interest was due on this loan. | |||||||||||||
On July 17, 2007, the Company acquired 3,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $465,000, carrying an interest rate of 6% A.P.R. On January 8, 2008, $375,156 was paid on this note. At March 31, 2014 and December 31, 2013, $149,800 and $147,575, respectively of principle and accrued interest was due on this loan. | |||||||||||||
On August 22, 2007, the Company acquired 2,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $160,000, carrying an interest rate of 6% A.P.R. At March 31, 2014 and December 31, 2013, $237,310 and $233,786, respectively of principle and accrued interest was due on this loan. | |||||||||||||
On September 20, 2007, the Company acquired 1,000,000 shares of International Oil & Gas Holdings Corp. from Berkshire Capital Management in exchange for a demand note in the amount of $55,000, carrying an interest rate of 6% A.P.R. At March 31, 2014 and December 31, 2013, $81,183 and $79,977, respectively of principle and accrued interest was due on this loan. | |||||||||||||
On January 5, 2012, the Company acquired 3,500,000 shares of Plandai, Inc, from Berkshire Capital Management in exchange for a demand note in the amount of $1,575,000. The note has a five year term with principal and interest due January 5, 2017. The interest rate is 6% A.P.R. At March 31, 2014 and December 31, 2013, $1,786,525 and $1,762,900, respectively of principle and accrued interest was due on this loan. | |||||||||||||
On February 1, 2012, the Company acquired 3,500,000 shares of Inscor, Inc. from Berkshire Capital Management in exchange for a demand note in the amount of $3,675,000. The note has a five year term with principal and interest due February 1, 2017. The interest rate is 6% A.P.R. At March 31, 2014 and December 31, 2013, $4,152,244 and $4,097,122, respectively of principle and accrued interest was due on this loan. | |||||||||||||
On May 14, 2013, the Company acquired 8,000,000 shares of Nuvilex, Inc. from Berkshire Capital Management in exchange for a demand note in the amount of $1,420,000. The note has a five year term with principal and interest due May 14, 2018. The interest rate is 6% A.P.R. At March 31, 2014 and December 31, 2013, $1,494,871 and $1,473,570, respectively of principle and accrued interest was due on this loan. | |||||||||||||
On May 21, 2013, the Company acquired 8,230,637 shares of Nuvilex, Inc. from Joseph Fiore in exchange for a demand note in the amount of $1,185,218. The note has a five year term with principal and interest due May 21, 2018. The interest rate is 6% A.P.R. At March 31, 2014 and December 31, 2013, $1,246,540 and $1,228,762, respectively, of principle and accrued interest was due on this loan. | |||||||||||||
Interest expense of $146,209 and $535,674 was capitalized during the quarter ended March 31, 2014 and the year ended December 31, 2013, respectively. | |||||||||||||
A summary of the above related party transactions is presented below. | |||||||||||||
Related Party | Date of loan | 31-Mar-14 | 31-Dec-13 | ||||||||||
Joseph Fiore | 21-May-13 | $ | 1,246,540 | $ | 1,228,762 | ||||||||
Berkshire Capital Management | 14-May-13 | 1,494,871 | 1,473,570 | ||||||||||
Berkshire Capital Management | 1-Feb-12 | 4,152,244 | 4,097,122 | ||||||||||
Berkshire Capital Management | 5-Jan-12 | 1,786,525 | 1,762,900 | ||||||||||
Joseph Fiore | 2010 & 2011 | 1,305,422 | 1,286,035 | ||||||||||
Berkshire Capital Management | 14-Sep-07 | 137,316 | 135,276 | ||||||||||
Berkshire Capital Management | 17-Jul-07 | 149,800 | 147,575 | ||||||||||
Berkshire Capital Management | 22-Aug-07 | 237,310 | 233,786 | ||||||||||
Berkshire Capital Management | 20-Sep-07 | 81,183 | 79,977 | ||||||||||
$ | 10,591,211 | $ | 10,445,003 | ||||||||||
Less: Current Portion | 1,911,028 | 1,882,648 | |||||||||||
Long Term Portion | $ | 8,680,183 | $ | 8,562,355 | |||||||||
During the year ended December 31, 2013, Joseph Fiore forgave $301,937 of debt originally loaned to two of the Company’s subsidiaries that are no longer operating. The amount was written off to additional paid in capital. |
Rent_And_Lease_Expense
Rent And Lease Expense | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Rent And Lease Expense | ' | ||||||
Rent And Lease Expense | ' | ||||||
NOTE 4 - 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 plus percentage rent equal to 20% of gross revenues above $1,200,000 under the lease which expires April 2017. Rent expense for the quarters ended March 31, 2014 and 2013 were $52,431 and $56,188, respectively. In addition to the minimum basic rent of $14,000 per month, rent expense also includes approximately $3,400 per month for other items charged by the landlord in connect with rent. | |||||||
The minimum future lease payments under these leases for the next five years are: | |||||||
Year Ended December 31, | Real Property | ||||||
2014 | $ | 168,000 | |||||
2015 | 168,000 | ||||||
2016 | 168,000 | ||||||
2017 | 56,000 | ||||||
Total five year minimum lease payments | $ | 560,000 | |||||
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 2014. |
Convertible_Preferred_Stock
Convertible Preferred Stock | 3 Months Ended | |
Mar. 31, 2014 | ||
Convertible Preferred Stock | ' | |
Convertible Preferred Stock | ' | |
NOTE 5 - CONVERTIBLE PREFERRED STOCK | ||
The Series E Convertible Preferred Stock carries the following rights and preferences; | ||
* | No dividends. | |
* | Convertible to common stock at the average closing bid price for the Company’s common stock for the 5 trading days prior to the conversion date, and is adjustable to prevent dilution. (Convertible to 3,380,663 common shares at March 31, 2014). | |
* | Convertible at the Option of the Company at par value only after repayment of the shareholder loans from Joseph Fiore and subject to the holder’s option to convert. | |
* | Entitled to vote 1,000 votes per share of Series E Convertible Preferred Shares. | |
* | Entitled to liquidation preference at par value. | |
* | Is senior to all other share of preferred or common shares issued past, present and future. | |
Restated_Financial_Statements_
Restated Financial Statements For The Three Months Ended March 2013 | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Notes to Financial Statements | ' | ||||||
Restated Financial Statements For The Three Months Ended March 2013 | ' | ||||||
NOTE 6 – RESTATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2013 | |||||||
The consolidated financial statements for the three months ended March 31, 2013 have been amended for failure to record the acquisition of marketable securities and the related notes payable, interest, and the resulting unrealized gains and losses. An analysis of the restated March 31, 2013 Statement of Operations is as follows. | |||||||
1 – In 2012 the Company acquired 3,500,000 shares of Plandai, Inc. valued at the FMV of $1,575,000 and 3,500,000 shares of Inscor, Inc. valued at the FMV of $3,675,000 from Berkshire Capital Management. The shares were exchanged for two demand notes, carrying an interest rate of 6%. | |||||||
2 – The change is due to the mark to market of the new available for sale securities. | |||||||
3 – Change is due to the consideration of the FMV of the marketable securities acquired in 2012. | |||||||
March 31, 2013 | |||||||
As Reported | Adjustment | As Restated | |||||
Revenues | $ | 277,328 | $ | - | $ | 277,328 | |
Cost of revenues | 84,554 | - | 84,554 | ||||
Gross Margin | 192,774 | - | 192,774 | ||||
Operating Expenses: | |||||||
Labor and related expenses | 80,586 | - | 80,586 | ||||
Rent | 56,188 | - | 56,188 | ||||
Depreciation | 12,775 | - | 12,775 | ||||
Other general and administrative | 95,042 | - | 95,042 | ||||
Total Operating Expenses | 244,591 | - | 244,591 | ||||
Net Operating Income (Loss) | -51,817 | - | -51,817 | ||||
Other Income (Expense): | |||||||
Interest income | 143 | - | 143 | ||||
Interest expense | -33,353 | -78,750 | 1 | -112,103 | |||
Unrealized gain (loss) on trading securities | 303,361 | 1,460 | 2 | 304,821 | |||
Gain (loss) on sale of marketable securities | 131,495 | -26,160 | 3 | 105,335 | |||
Net Other Income (Expense) | 401,646 | -103,450 | 298,196 | ||||
Net Income (Loss) | $ | 349,829 | $ | -103,450 | $ | 246,379 | |
Other Comprehensive Income (Loss): | |||||||
Unrealized gain on available-for-sale securities | 119,370 | -541,890 | 2 | -422,520 | |||
Comprehensive Income (Loss) | $ | 469,199 | $ | -645,340 | $ | -176,141 | |
Income Per Common Share: | $ | 0 | $ | - | $ | 0 | |
Income Per Common Share, Diluted: | $ | 0 | $ | $ | 0 | ||
Weighted Average Common Shares: | |||||||
Basic | 136,627,710 | - | 136,627,710 | ||||
Diluted | 146,061,672 | - | 146,061,672 | ||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
NOTE 9 - SUBSEQUENT EVENTS | |
The Company has performed an evaluation of subsequent events in accordance with ASC Topic 855, noting no additional subsequent events other that would require disclosure. | |
Organization_And_Summary_Of_Si1
Organization And Summary Of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Organization And Summary Of Significant Accounting Policies Policies | ' | ||||||||||||||||
Interim Financial Statements | ' | ||||||||||||||||
Interim Financial Statements | |||||||||||||||||
The unaudited financial statements as of March 31, 2014 and for the three month periods ended March 31, 2014 and 2013 reflect, in the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to fairly state the financial position and results of operations for the three months. Operating results for interim periods are not necessarily indicative of the results which can be expected for full years. | |||||||||||||||||
Organization | ' | ||||||||||||||||
Organization | |||||||||||||||||
Eat At Joe’s Ltd. (Company) was incorporated on January 6, 1988, under the laws of the State of Delaware, as a wholly-owned subsidiary of Debbie Reynolds Hotel and Casino, Inc. (DRHC) (formerly Halter Venture Corporation or Halter Racing Stables, Inc.) a publicly-owned corporation. DRHC caused the Company to register 1,777,000 shares of its initial 12,450,000 issued and outstanding shares of common stock with the Securities and Exchange Commission on Form S-18. DRHC then distributed the registered shares to DRHC stockholders. | |||||||||||||||||
During the period September 30, 1988 to December 31, 1992, the Company remained in the development stage while attempting to enter the mining industry. The Company acquired certain unpatented mining claims and related equipment necessary to mine, extract, process and otherwise explore for kaolin clay, silica, feldspar, precious metals, antimony and other commercial minerals from its majority stockholder and other unrelated third-parties. The Company was unsuccessful in these start-up efforts and all activity was ceased during 1992 as a result of foreclosure on various loans in default and/or the abandonment of all assets. From 1992 until 1996 the Company had no operations, assets or liabilities. | |||||||||||||||||
Basis Of Presentation | ' | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustment relating to recoverability and classification of recorded amounts of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. | |||||||||||||||||
The Company has generated a net income before taxes for the quarter ended March 31, 2014 of $7,235,409; however it had a loss from operations of $123,917. As of March 31, 2014, the Company had an accumulated deficit of $8,420,166. These conditions continue to raise substantial doubt as to the Company's ability to continue as a going concern. | |||||||||||||||||
The Company's continued existence is dependent upon its ability to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company. | |||||||||||||||||
Management’s plans include searching for and opening new restaurants in the future, utilizing company assets to maximize shareholder value and obtaining additional financing to fund payment of obligations and to provide working capital for operations and to finance future growth. The Company is actively pursuing alternative financing and has had discussions with various third parties, although no firm commitments have been obtained. In the interim, shareholders of the Company have committed to meeting its operating expenses. Management believes these efforts will generate sufficient cash flows from future operations to pay the Company’s obligations and realize other assets. There is no assurance any of these transactions will occur. | |||||||||||||||||
Nature Of Business | ' | ||||||||||||||||
Nature of Business | |||||||||||||||||
The Company owns and operates a theme restaurant styled in an “American Diner” atmosphere. | |||||||||||||||||
Principles Of Consolidation | ' | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The consolidated financial statements include the accounts of Eat At Joe’s, LTD. And its wholly-owned subsidiaries, E.A.J. PHL Airport, Inc., a Pennsylvania corporation, E.A.J. Shoppes, Inc., a Nevada corporation, E.A.J. Cherry Hill, Inc., a Nevada corporation, E.A.J. Market East, Inc., a Nevada corporation, E.A.J. MO, Inc., a Nevada corporation, E.A.J. Walnut Street, Inc., a Nevada corporation, and 1398926 Ontario, Inc. and 1337855 Ontario, Inc., Ontario corporations. All significant intercompany accounts and transactions have been eliminated. | |||||||||||||||||
Inventories | ' | ||||||||||||||||
Inventories | |||||||||||||||||
Inventories consist of food, paper items and related materials and are stated at the lower of cost (first-in, first-out method) or market. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
The Company generates revenue from the sale of food and beverage through its restaurants. Revenue is recognized upon receipt of payment. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
The Company accounts for income taxes under the provisions of ASC 740 (formerly SFAS No. 109, “Accounting for Income Taxes”). ASC 740 requires a company to first determine whether it is more likely than not (which is defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more likely than not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority. | |||||||||||||||||
Deferred income taxes are recognized for the tax consequences related to temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes at each year end, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized when, based on the weight of all available evidence, it is considered more likely than not that all, or some portion, of the deferred tax assets will not be realized. Income tax expense is the sum of current income tax plus the change in deferred tax assets and liabilities. | |||||||||||||||||
Cash And Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. | |||||||||||||||||
Depreciation | ' | ||||||||||||||||
Depreciation | |||||||||||||||||
Office furniture, equipment and leasehold improvements are stated at cost. Depreciation and amortization are computed using the straight-line method over the estimated economic useful lives of the related assets as follows: | |||||||||||||||||
Furniture & fixtures | 5-10 years | ||||||||||||||||
Equipment | 5- 7 years | ||||||||||||||||
Computer equipment | 3 years | ||||||||||||||||
Leasehold improvements | 6-15 years | ||||||||||||||||
Maintenance and repairs are charged to operations; betterments are capitalized. The cost of property sold or otherwise disposed of and the accumulated depreciation thereon are eliminated from the property and related accumulated depreciation accounts, and any resulting gain or loss is credited or charged to income. | |||||||||||||||||
Recent Accounting Standards | ' | ||||||||||||||||
Recent Accounting Standards | |||||||||||||||||
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to: | |||||||||||||||||
- | Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and | ||||||||||||||||
- | Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense. | ||||||||||||||||
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. Early adoption is permitted. The adoption of ASU No. 2013-02 is not expected to have a material impact on our financial position or results of operations. | |||||||||||||||||
In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies which instruments and transactions are subject to the offsetting disclosure requirements originally established by ASU 2011-11. The new ASU addresses preparer concerns that the scope of the disclosure requirements under ASU 2011-11 was overly broad and imposed unintended costs that were not commensurate with estimated benefits to financial statement users. In choosing to narrow the scope of the offsetting disclosures, the Board determined that it could make them more operable and cost effective for preparers while still giving financial statement users sufficient information to analyze the most significant presentation differences between financial statements prepared in accordance with U.S. GAAP and those prepared under IFRSs. Like ASU 2011-11, the amendments in this update will be effective for fiscal periods beginning on, or after January 1, 2013. The adoption of ASU 2013-01 is not expected to have a material impact on our financial position or results of operations. | |||||||||||||||||
In July 2013, the FASB issued Accounting Standards Update 2013-11 Income Taxes (Topic 740) Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax loss or a tax credit carry-forward, except as follows. To the extent a net operating loss carry-forward, a similar tax loss or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. | |||||||||||||||||
The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. | |||||||||||||||||
Earning (Loss) Per Share | ' | ||||||||||||||||
Earnings (Loss) Per Share | |||||||||||||||||
Basic loss per share has been computed by dividing the loss for the year applicable to the common stockholders by the weighted average number of common shares outstanding during the years. | |||||||||||||||||
Diluted net income per common share was calculated based on an increased number of shares that would be outstanding assuming that the preferred shares were converted to 3,380,663 and 9,433,962, common shares as of March 31, 2014 and 2013, respectively. | |||||||||||||||||
Pervasiveness Of Estimates | ' | ||||||||||||||||
Pervasiveness of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Concentration Of Credit Risk | ' | ||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. The Company maintains the majority of its cash balances with one financial institution, in the form of demand deposits. At March 31, 2014, the Company had cash deposits in one financial institution that were above FDIC limits of $250,000. | |||||||||||||||||
Fair Value Of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: | |||||||||||||||||
Level 1: | Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. | ||||||||||||||||
Level 2: | Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | ||||||||||||||||
Level 3: | Pricing inputs that are generally observable inputs and not corroborated by market data. | ||||||||||||||||
The carrying amount of the Company’s financial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the short maturity of those instruments. The Company’s notes payable approximate the fair value of such instruments based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangements at March 31, 2014. | |||||||||||||||||
The Company does not have any assets or liabilities measured at fair value on a non-recurring basis. | |||||||||||||||||
Investment In Marketable Securities | ' | ||||||||||||||||
Investment in Marketable Securities | |||||||||||||||||
The Company’s securities investments that are bought and held for an indefinite period of time are classified as available-for-sale securities. Available-for-sale securities are purchased with the intent of selling them before they reach maturity and are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period excluded from earnings and recorded net of tax as a component of other comprehensive income. All of the Company’s available-for-sale securities are marketable securities and have no maturity date. When sold the cost of the securities is determined using the average purchase cost of the securities. On occasion the Company will transfer some of its available for sale securities to trading securities. When this occurs the unrealized gain or loss is immediately recognized in earnings. Trading securities are purchased with the intent of selling them in the short term. During the period ended March 31, 2014 the Company recognized a $348,750 unrealized gain on securities transferred from available for sale to trading. No securities have been transferred from trading to available for sale. The cost basis of the Company’s available-for-sale securities as of March 31, 2014 and December 31, 2013 was $4,231,350 and $4,228,850, respectively. | |||||||||||||||||
The Company’s securities investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities. Trading securities are recorded at fair value on the balance sheet in current assets, with the change in fair value during the period included in earnings. | |||||||||||||||||
Investments in securities are summarized as follows: | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Gross | Gross | Net | |||||||||||||||
Unrealized | Unrealized | Unrealized | Fair | ||||||||||||||
Gain | Loss | Gain (Loss) | Value | ||||||||||||||
Trading securities | $ | 1,684,865 | $ | — | $ | 1,684,865 | $ | 2,968,569 | |||||||||
Available-for-sale securities | $ | 1,701,712 | $ | — | $ | 1,701,712 | $ | 10,793,820 | |||||||||
31-Dec-13 | |||||||||||||||||
Gross | Gross | Net | |||||||||||||||
Unrealized | Unrealized | Unrealized | Fair | ||||||||||||||
Gain | Loss | Gain (Loss) | Value | ||||||||||||||
Trading securities | $ | 4,966,872 | $ | 6,692,643 | $ | (1,725,771 | ) | $ | 1,717,438 | ||||||||
Available-for-sale securities | $ | 9,382,973 | $ | 998,874 | $ | 8,384,099 | $ | 9,089,608 | |||||||||
Results of operations for the quarter ended March 31, 2014 includes a gain of $1,684,865 on unrealized holding gains on trading securities. For the quarter ended March 31, 2014, other comprehensive income includes $1,701,712 for an unrealized holding gain on available-for-sale securities. | |||||||||||||||||
Realized gains and losses are determined on the basis of specific identification. During the quarter ended March 31, 2014 and 2013, sales proceeds and gross realized gains and losses on securities classified as available-for-sale securities and trading securities were: | |||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Trading securities: | |||||||||||||||||
Sales Proceeds | $ | 8,176,418 | $ | 201,414 | |||||||||||||
Gross Realized Losses | $ | (122,122 | ) | $ | (27,483 | ) | |||||||||||
Gross Realized Gains | $ | 5,941,554 | $ | 132,818 | |||||||||||||
Gain (loss) on sale of marketable securities | $ | 5,819,432 | $ | 105,335 | |||||||||||||
Available-for-sale securities: | 31-Mar-14 | 31-Mar-13 | |||||||||||||||
Sale Proceeds | $ | — | $ | — | |||||||||||||
Gross Realized Losses | $ | — | $ | — | |||||||||||||
Gross Realized Gains | $ | — | $ | — | |||||||||||||
The following table discloses the assets measured at fair value on a recurring basis and the methods used to determine fair value: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Fair Value at | Markets | Observable Inputs | Inputs | ||||||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Trading securities | $ | 2,968,569 | $ | 2,968,569 | $ | — | $ | — | |||||||||
Available-for-sale securities | $ | 10,793,820 | $ | 10,793,820 | $ | — | $ | — | |||||||||
Total | $ | 13,762,389 | $ | 13,762,389 | $ | — | $ | — | |||||||||
Generally, for all trading securities and available-for-sale securities, fair value is determined by reference to quoted market prices. |
Organziation_And_Summary_Of_Si
Organziation And Summary Of Significiant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Organziation And Summary Of Significiant Accounting Policies Tables | ' | ||||||||||||||||
Estimated Economic Useful Lives Of Assets | ' | ||||||||||||||||
Furniture & fixtures | 5-10 years | ||||||||||||||||
Equipment | 5- 7 years | ||||||||||||||||
Computer equipment | 3 years | ||||||||||||||||
Leasehold improvements | 6-15 years | ||||||||||||||||
Schedule Of Gross Unrealized Gain\Loss On Securities | ' | ||||||||||||||||
Investments in securities are summarized as follows: | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Gross | Gross | Net | |||||||||||||||
Unrealized | Unrealized | Unrealized | Fair | ||||||||||||||
Gain | Loss | Gain (Loss) | Value | ||||||||||||||
Trading securities | $ | 1,684,865 | $ | — | $ | 1,684,865 | $ | 2,968,569 | |||||||||
Available-for-sale securities | $ | 1,701,712 | $ | — | $ | 1,701,712 | $ | 10,793,820 | |||||||||
31-Dec-13 | |||||||||||||||||
Gross | Gross | Net | |||||||||||||||
Unrealized | Unrealized | Unrealized | Fair | ||||||||||||||
Gain | Loss | Gain (Loss) | Value | ||||||||||||||
Trading securities | $ | 4,966,872 | $ | 6,692,643 | $ | (1,725,771 | ) | $ | 1,717,438 | ||||||||
Available-for-sale securities | $ | 9,382,973 | $ | 998,874 | $ | 8,384,099 | $ | 9,089,608 | |||||||||
Schedule Of Gross Realized Gain\Loss On Securities | ' | ||||||||||||||||
31-Mar-14 | 31-Mar-13 | ||||||||||||||||
Trading securities: | |||||||||||||||||
Sales Proceeds | $ | 8,176,418 | $ | 201,414 | |||||||||||||
Gross Realized Losses | $ | (122,122 | ) | $ | (27,483 | ) | |||||||||||
Gross Realized Gains | $ | 5,941,554 | $ | 132,818 | |||||||||||||
Gain (loss) on sale of marketable securities | $ | 5,819,432 | $ | 105,335 | |||||||||||||
Available-for-sale securities: | 31-Mar-14 | 31-Mar-13 | |||||||||||||||
Sale Proceeds | $ | — | $ | — | |||||||||||||
Gross Realized Losses | $ | — | $ | — | |||||||||||||
Gross Realized Gains | $ | — | $ | — | |||||||||||||
Schedule Of Fair Value Of Assets Measured On Recurring Basis | ' | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Fair Value at | Markets | Observable Inputs | Inputs | ||||||||||||||
31-Mar-14 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Trading securities | $ | 2,968,569 | $ | 2,968,569 | $ | — | $ | — | |||||||||
Available-for-sale securities | $ | 10,793,820 | $ | 10,793,820 | $ | — | $ | — | |||||||||
Total | $ | 13,762,389 | $ | 13,762,389 | $ | — | $ | — | |||||||||
Fixed_Assets_Tables
Fixed Assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule Of Property Plant And Equipment | ' | ||||||||
Fixed assets consisted of the following at: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Equipment | $ | 106,861 | $ | 106,861 | |||||
Furniture & fixtures | 3,964 | 3,964 | |||||||
Leasehold improvements | 274,637 | 274,637 | |||||||
Less: accumulated depreciation | (176,230 | ) | (158,164 | ) | |||||
Property and equipment, net | $ | 209,232 | $ | 227,298 |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Related Party Transactions Tables | ' | ||||||||||||
Schedule Of Related Party Notes Payable Maturities | ' | ||||||||||||
A summary of the above related party transactions is presented below. | |||||||||||||
Related Party | Date of loan | 31-Mar-14 | 31-Dec-13 | ||||||||||
Joseph Fiore | 21-May-13 | $ | 1,246,540 | $ | 1,228,762 | ||||||||
Berkshire Capital Management | 14-May-13 | 1,494,871 | 1,473,570 | ||||||||||
Berkshire Capital Management | 1-Feb-12 | 4,152,244 | 4,097,122 | ||||||||||
Berkshire Capital Management | 5-Jan-12 | 1,786,525 | 1,762,900 | ||||||||||
Joseph Fiore | 2010 & 2011 | 1,305,422 | 1,286,035 | ||||||||||
Berkshire Capital Management | 14-Sep-07 | 137,316 | 135,276 | ||||||||||
Berkshire Capital Management | 17-Jul-07 | 149,800 | 147,575 | ||||||||||
Berkshire Capital Management | 22-Aug-07 | 237,310 | 233,786 | ||||||||||
Berkshire Capital Management | 20-Sep-07 | 81,183 | 79,977 | ||||||||||
$ | 10,591,211 | $ | 10,445,003 | ||||||||||
Less: Current Portion | 1,911,028 | 1,882,648 | |||||||||||
Long Term Portion | $ | 8,680,183 | $ | 8,562,355 | |||||||||
Rent_And_Lease_Expense_Tables
Rent And Lease Expense (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Rent And Lease Expense Tables | ' | ||||||
Minimum Future Lease Payments | ' | ||||||
The minimum future lease payments under these leases for the next five years are: | |||||||
Year Ended December 31, | Real Property | ||||||
2014 | $ | 168,000 | |||||
2015 | 168,000 | ||||||
2016 | 168,000 | ||||||
2017 | 56,000 | ||||||
Total five year minimum lease payments | $ | 560,000 | |||||
Restated_Financial_Statements_1
Restated Financial Statements (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Notes to Financial Statements | ' | ||||||
Summary Of The Effect Of The Restatement | ' | ||||||
March 31, 2013 | |||||||
As Reported | Adjustment | As Restated | |||||
Revenues | $ | 277,328 | $ | - | $ | 277,328 | |
Cost of revenues | 84,554 | - | 84,554 | ||||
Gross Margin | 192,774 | - | 192,774 | ||||
Operating Expenses: | |||||||
Labor and related expenses | 80,586 | - | 80,586 | ||||
Rent | 56,188 | - | 56,188 | ||||
Depreciation | 12,775 | - | 12,775 | ||||
Other general and administrative | 95,042 | - | 95,042 | ||||
Total Operating Expenses | 244,591 | - | 244,591 | ||||
Net Operating Income (Loss) | -51,817 | - | -51,817 | ||||
Other Income (Expense): | |||||||
Interest income | 143 | - | 143 | ||||
Interest expense | -33,353 | -78,750 | 1 | -112,103 | |||
Unrealized gain (loss) on trading securities | 303,361 | 1,460 | 2 | 304,821 | |||
Gain (loss) on sale of marketable securities | 131,495 | -26,160 | 3 | 105,335 | |||
Net Other Income (Expense) | 401,646 | -103,450 | 298,196 | ||||
Net Income (Loss) | $ | 349,829 | $ | -103,450 | $ | 246,379 | |
Other Comprehensive Income (Loss): | |||||||
Unrealized gain on available-for-sale securities | 119,370 | -541,890 | 2 | -422,520 | |||
Comprehensive Income (Loss) | $ | 469,199 | $ | -645,340 | $ | -176,141 | |
Income Per Common Share: | $ | 0 | $ | - | $ | 0 | |
Income Per Common Share, Diluted: | $ | 0 | $ | $ | 0 | ||
Weighted Average Common Shares: | |||||||
Basic | 136,627,710 | - | 136,627,710 | ||||
Diluted | 146,061,672 | - | 146,061,672 | ||||
Organization_And_Summary_Of_Si2
Organization And Summary Of Significant Accounting Policies (Estimated Economic Useful Lives Of Assets) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Furniture And Fixtures | Minimum | ' |
Useful life | '5 years |
Furniture And Fixtures | Maximum | ' |
Useful life | '10 years |
Equipment | Minimum | ' |
Useful life | '5 years |
Equipment | Maximum | ' |
Useful life | '7 years |
Computer Equipment | ' |
Useful life | '3 years |
Leasehold Improvements | Minimum | ' |
Useful life | '6 years |
Leasehold Improvements | Maximum | ' |
Useful life | '15 years |
Organization_And_Summary_Of_Si3
Organization And Summary Of Significant Accounting Policies (Schedule Of Gross Unrealised Gain\Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Organization And Summary Of Significant Accounting Policies Schedule Of Gross Unrealised Gainloss Details | ' | ' | ' |
Trading Securities, Gross Unrealized Gain | $1,684,865 | ' | $4,966,872 |
Trading Securities, Gross Unrealized Loss | ' | ' | 6,692,643 |
Trading Securities, Net Unrealized Gain (Loss) | 1,684,865 | ' | -1,725,771 |
Trading Securities, Fair Value | 2,968,569 | ' | 1,717,438 |
Available-for-sale securities, Gross Unrealized Gain | 1,701,712 | ' | 9,382,973 |
Available-for-sale securities, Gross Unrealized Loss | ' | ' | 998,874 |
Available-for-sale-securities, Net Unrealized Gain (Loss) | 1,701,712 | -422,520 | 8,384,099 |
Available-for-securities, Fair Value | $10,793,820 | ' | $9,089,608 |
Organization_And_Summary_Of_Si4
Organization And Summary Of Significant Accounting Policies (Schedule Of Gross Realized Gain/Loss) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Trading Securities: | ' | ' |
Sale Proceeds | $8,176,418 | $201,414 |
Gross Realized Losses | -122,122 | -27,483 |
Gross Realized Gains | 5,941,554 | 132,818 |
Gain (loss) on sale of marketable securities | 5,819,432 | 105,335 |
Available-For-Sale Securities: | ' | ' |
Sale Proceeds | ' | ' |
Gross Realized Losses | ' | ' |
Gross Realized Gains | ' | ' |
Organization_And_Summary_Of_Si5
Organization And Summary Of Significant Accounting Policies (Schedule Of Fair Value Of Assets) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Trading Securities | $2,968,569 | $1,717,438 |
Available-For-Sale Securities | 10,793,820 | 9,089,608 |
Estimated Fair Value | ' | ' |
Trading Securities | 2,968,569 | ' |
Available-For-Sale Securities | 10,793,820 | ' |
Total | 13,762,389 | ' |
Fair Value Measurements Using Quoted Prices In Active Markets (Level 1) | ' | ' |
Trading Securities | 2,968,569 | ' |
Available-For-Sale Securities | 10,793,820 | ' |
Total | 13,762,389 | ' |
Fair Value Measurements Using Significant Other Observable Inputs (Level 2) | ' | ' |
Trading Securities | ' | ' |
Available-For-Sale Securities | ' | ' |
Total | ' | ' |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ' | ' |
Trading Securities | ' | ' |
Available-For-Sale Securities | ' | ' |
Total | ' | ' |
Fixed_Assets_Details
Fixed Assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Less: accumulated depreciation | ($176,230) | ($158,164) |
Property and equipment, net | 209,232 | 227,298 |
Equipment | ' | ' |
Property plant and equipment, gross | 106,861 | 106,861 |
Furniture And Fixtures | ' | ' |
Property plant and equipment, gross | 3,964 | 3,964 |
Leasehold Improvements | ' | ' |
Property plant and equipment, gross | $274,637 | $274,637 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Total Of Related Party | $10,591,211 | $10,445,003 |
Related Party Payable | 1,911,028 | 1,882,648 |
Long Term Portion | 8,680,183 | 8,562,355 |
Joseph Fiore, CEO of the Company and Berkshire Capital | Notes Payable Dated - 21 May, 2013 | ' | ' |
Related Party Payable | 1,246,540 | 1,228,762 |
Date Of Loan | 21-May-13 | ' |
Joseph Fiore, CEO of the Company and Berkshire Capital | Notes Payable Dated - 2011 And 2010 | ' | ' |
Related Party Payable | 1,305,422 | 1,286,035 |
Loan Date | '2010 & 2011 | ' |
Berkshire Capital Management | Notes Payable Dated - 1 February, 2012 | ' | ' |
Related Party Payable | 4,152,244 | 4,097,122 |
Date Of Loan | 1-Feb-12 | ' |
Berkshire Capital Management | Notes Payable Dated - 5 January, 2012 | ' | ' |
Related Party Payable | 1,786,525 | 1,762,900 |
Date Of Loan | 5-Jan-12 | ' |
Berkshire Capital Management | Notes Payable Dated - 14 May, 2013 | ' | ' |
Related Party Payable | 1,494,871 | 1,473,570 |
Date Of Loan | 14-May-13 | ' |
Berkshire Capital Management | Notes Payable Dated - 14 September, 2007 | ' | ' |
Related Party Payable | 137,316 | 135,276 |
Date Of Loan | 14-Sep-07 | ' |
Berkshire Capital Management | Notes Payable Dated - 17 July, 2007 | ' | ' |
Related Party Payable | 149,800 | 147,575 |
Date Of Loan | 17-Jul-07 | ' |
Berkshire Capital Management | Notes Payable Dated - 22 August, 2007 | ' | ' |
Related Party Payable | 237,310 | 233,786 |
Date Of Loan | 22-Aug-07 | ' |
Berkshire Capital Management | Notes Payable Dated - 20 September, 2007 | ' | ' |
Related Party Payable | $81,183 | $79,977 |
Date Of Loan | 20-Sep-07 | ' |
Rent_And_Lease_Expense_Minimum
Rent And Lease Expense (Minimum Future Lease Payments) (Details) (Real Property, USD $) | Mar. 31, 2014 |
Real Property | ' |
Year Ended December 31, | ' |
2014 | $168,000 |
2015 | 168,000 |
2016 | 168,000 |
2017 | 56,000 |
Total Five Year Minimum Lease Payments | $560,000 |
Restated_Financial_Statements_2
Restated Financial Statements (Summary Of The Effect Of The Restatement - Statements Of Operations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Revenues | $337,171 | $277,328 | ' | |
Cost of revenues | 105,710 | 84,554 | ' | |
Gross Margin | 231,461 | 192,774 | ' | |
Operating Expenses: | ' | ' | ' | |
Labor and related expenses | 92,270 | 80,586 | ' | |
Rent | 52,431 | 56,188 | ' | |
Depreciation | 18,066 | 12,775 | ' | |
Other general and administrative | 192,611 | 95,042 | ' | |
Total Operating Expenses | 355,378 | 244,591 | ' | |
Net Operating Income (Loss) | -123,917 | -51,817 | ' | |
Other Income (Expense): | ' | ' | ' | |
Interest income | 1,238 | 143 | ' | |
Interest expense | 146,209 | 112,103 | ' | |
Unrealized gain (loss) on trading securities | 1,684,865 | 304,821 | ' | |
Gain (loss) on sale of marketable securities | 5,819,432 | 105,335 | ' | |
Net Other Income (Expense) | 7,359,326 | 298,196 | ' | |
Net Income (Loss) | 7,235,409 | 246,379 | ' | |
Other Comprehensive Income (Loss): | ' | ' | ' | |
Unrealized gain (loss) on available-for-sale securities | 1,701,712 | -422,520 | 8,384,099 | |
Comprehensive Income | 8,937,121 | -176,141 | ' | |
Weighted Average Common Shares: | ' | ' | ' | |
Basic | 136,627,710 | 136,627,710 | ' | |
Diluted | 140,008,373 | 146,061,672 | ' | |
As Reported | ' | ' | ' | |
Revenues | ' | 277,328 | ' | |
Cost of revenues | ' | 84,554 | ' | |
Gross Margin | ' | 192,774 | ' | |
Operating Expenses: | ' | ' | ' | |
Labor and related expenses | ' | 80,586 | ' | |
Rent | ' | 56,188 | ' | |
Depreciation | ' | 12,775 | ' | |
Other general and administrative | ' | 95,042 | ' | |
Total Operating Expenses | ' | 244,591 | ' | |
Net Operating Income (Loss) | ' | -51,817 | ' | |
Other Income (Expense): | ' | ' | ' | |
Interest income | ' | 143 | ' | |
Interest expense | ' | 33,353 | ' | |
Unrealized gain (loss) on trading securities | ' | 303,361 | ' | |
Gain (loss) on sale of marketable securities | ' | 131,495 | ' | |
Net Other Income (Expense) | ' | 401,646 | ' | |
Net Income (Loss) | ' | 349,829 | ' | |
Other Comprehensive Income (Loss): | ' | ' | ' | |
Unrealized gain (loss) on available-for-sale securities | ' | 119,370 | ' | |
Comprehensive Income | ' | 469,199 | ' | |
Income per Common Share: Basic | ' | $0 | ' | |
Income per Common Share: Diluted | ' | $0 | ' | |
Weighted Average Common Shares: | ' | ' | ' | |
Basic | ' | 136,627,710 | ' | |
Diluted | ' | 146,061,672 | ' | |
Adjustment | ' | ' | ' | |
Revenues | ' | ' | ' | |
Cost of revenues | ' | ' | ' | |
Gross Margin | ' | ' | ' | |
Operating Expenses: | ' | ' | ' | |
Labor and related expenses | ' | ' | ' | |
Rent | ' | ' | ' | |
Depreciation | ' | ' | ' | |
Other general and administrative | ' | ' | ' | |
Total Operating Expenses | ' | ' | ' | |
Net Operating Income (Loss) | ' | ' | ' | |
Other Income (Expense): | ' | ' | ' | |
Interest income | ' | ' | ' | |
Interest expense | ' | 78,750 | [1] | ' |
Unrealized gain (loss) on trading securities | ' | 1,460 | [2] | ' |
Gain (loss) on sale of marketable securities | ' | -26,160 | [3] | ' |
Net Other Income (Expense) | ' | -103,450 | ' | |
Net Income (Loss) | ' | -103,450 | ' | |
Other Comprehensive Income (Loss): | ' | ' | ' | |
Unrealized gain (loss) on available-for-sale securities | ' | -541,890 | [2] | ' |
Comprehensive Income | ' | -645,340 | ' | |
Income per Common Share: Basic | ' | ' | ' | |
Income per Common Share: Diluted | ' | ' | ' | |
Weighted Average Common Shares: | ' | ' | ' | |
Basic | ' | ' | ' | |
Diluted | ' | ' | ' | |
As Restated | ' | ' | ' | |
Revenues | ' | 277,328 | ' | |
Cost of revenues | ' | 84,554 | ' | |
Gross Margin | ' | 192,774 | ' | |
Operating Expenses: | ' | ' | ' | |
Labor and related expenses | ' | 80,586 | ' | |
Rent | ' | 56,188 | ' | |
Depreciation | ' | 12,775 | ' | |
Other general and administrative | ' | 95,042 | ' | |
Total Operating Expenses | ' | 244,591 | ' | |
Net Operating Income (Loss) | ' | -51,817 | ' | |
Other Income (Expense): | ' | ' | ' | |
Interest income | ' | 143 | ' | |
Interest expense | ' | 112,103 | ' | |
Unrealized gain (loss) on trading securities | ' | 304,821 | ' | |
Gain (loss) on sale of marketable securities | ' | 105,335 | ' | |
Net Other Income (Expense) | ' | 298,196 | ' | |
Net Income (Loss) | ' | 246,379 | ' | |
Other Comprehensive Income (Loss): | ' | ' | ' | |
Unrealized gain (loss) on available-for-sale securities | ' | -422,520 | ' | |
Comprehensive Income | ' | ($176,141) | ' | |
Income per Common Share: Basic | ' | $0 | ' | |
Income per Common Share: Diluted | ' | $0 | ' | |
Weighted Average Common Shares: | ' | ' | ' | |
Basic | ' | 136,627,710 | ' | |
Diluted | ' | 146,061,672 | ' | |
[1] | In 2012 the Company acquired 3,500,000 shares of Plandai, Inc. valued at the FMV of $1,575,000 and 3,500,000 shares of Inscor, Inc. valued at the FMV of $3,675,000 from Berkshire Capital Management. The shares were exchanged for two demand notes, carrying an interest rate of 6%. | |||
[2] | The change is due to the mark to market of the new available for sale securities. | |||
[3] | Change is due to the consideration of the FMV of the marketable securities acquired in 2012 |
Organization_And_Summary_Of_Si6
Organization And Summary Of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Jan. 06, 1988 | |
Organization And Summary Of Significant Accounting Policies Narrative Details | ' | ' | ' | ' |
Shares Of Common Stock Initially Issued And Outstanding | 136,627,710 | 136,627,710 | ' | 12,450,000 |
Shares Of Common Stock Registered With SEC | ' | ' | ' | 1,777,000 |
Preferred shares converted | 3,380,663 | ' | 9,433,962 | ' |
FDIC Limit Of Cash Deposits | $250,000 | ' | ' | ' |
Unrealized Gain On Securities Transferred From Available For Sale To Trading | 348,750 | ' | ' | ' |
Cost basis of the Company's available-for-sale securities | $4,231,350 | $4,228,850 | ' | ' |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 0 Months Ended | ||||||||
Sep. 14, 2007 | Jan. 08, 2008 | Jul. 17, 2007 | Aug. 22, 2007 | Sep. 20, 2007 | Jan. 05, 2012 | Feb. 01, 2012 | 14-May-13 | 21-May-13 | |
Berkshire Capital Management | Berkshire Capital Management | Berkshire Capital Management | Berkshire Capital Management | Berkshire Capital Management | Berkshire Capital Management | Berkshire Capital Management | Berkshire Capital Management | Joseph Fiore, CEO of the Company and Berkshire Capital | |
Investment in International Oil and Gas Holdings Corp | Investment in International Oil and Gas Holdings Corp | Investment in International Oil and Gas Holdings Corp | Investment in International Oil and Gas Holdings Corp | Investment in International Oil and Gas Holdings Corp | Investment In Plandai Inc | Investment In Inscor, Inc. | Investment In Nuvilex, Inc | Investment In Nuvilex, Inc | |
Notes Payable Dated - 14 September, 2007 | Notes Payable Dated - 17 July, 2007 | Notes Payable Dated - 17 July, 2007 | Notes Payable Dated - 22 August, 2007 | Notes Payable Dated - 20 September, 2007 | Notes Payable Dated - 5 January, 2012 | Notes Payable Dated - 1 February, 2012 | Notes Payable Dated - 14 May, 2013 | Notes Payable Dated - 21 May, 2013 | |
No Of Shares Acquired | 1,000,000 | ' | 3,000,000 | 2,000,000 | 1,000,000 | 3,500,000 | 3,500,000 | 8,000,000 | 8,230,637 |
Demand Notes | $125,000 | ' | $465,000 | $160,000 | $55,000 | $1,575,000 | $3,675,000 | $1,420,000 | $1,185,218 |
Interest Rate On Demand Notes | 6.00% | ' | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% |
Repayment Of Loan | ' | $375,156 | ' | ' | ' | ' | ' | ' | ' |
Debt Maturity Terms | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The note has a five year term with principal and interest | The note has a five year term with principal and interest | The note has a five year term with principal and interest | The note has a five year term with principal and interest | ||||||
Due Date | ' | ' | ' | ' | ' | 5-Jan-17 | 1-Feb-17 | 14-May-18 | 21-May-18 |
Rent_And_Lease_Expense_Narrati
Rent And Lease Expense (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Rent And Lease Expense Narrative Details | ' | ' | ' |
Description Of Terms Of Lease | ' | ' | ' |
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 plus percentage rent equal to 20% of gross revenues above $1,200,000 under the lease which expires April 2017. | |||
Basic Rent Per Month Under Lease | $14,000 | ' | ' |
Other Per Month Expenses Paid to Landlord | 3,400 | ' | ' |
Construction Security Deposit | $15,000 | $15,000 | $15,000 |
Convertible_Preferred_Stock_Na
Convertible Preferred Stock (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Convertible Preferred Stock Narrative Details | ' |
Voting Rights Of Series E Convertible Preferred Shares | 'Entitled to vote 1,000 votes per share of Series E Convertible Preferred Shares. |
Convertible Preferred Stock Conversion Terms | ' |
Convertible to common stock at the average closing bid price for the Company’s common stock for the 5 trading days prior to the conversion date, and is adjustable to prevent dilution. (Convertible to 3,380,663 common shares at March 31, 2014). | |
Convertible at the Option of the Company at par value only after repayment of the shareholder loans from Joseph Fiore and subject to the holder’s option to convert. |