Discontinued Operations

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Discontinued Operations

Note 8: Loss on discontinued operations was $316,022, net of a tax benefit of $207,280, in the three-month and nine-month periods ended September 30, 2011 compared to a loss of $935,237, net of a tax benefit of $604,415, for the three-month and nine-month periods ended September 30, 2010. In 2011, the loss on discontinued operations consisted primarily of legal and other expenses related to the Heyser lawsuit and expenses incurred related to a leased facility formerly containing one of the full-service restaurants, which was a part of the 1999 discontinued operations. The additional accrual for the Heyser lawsuit was necessary as actual expenses exceeded previous estimates primarily because, since the Company was granted summary judgment dismissing their fraud claims on December 23, 2010, the Plaintiffs have filed numerous motions for reconsideration and an appeal, all of which created additional legal and other expenses. The additional accrual for the leased facility was necessary because the previous estimates for those expenses assumed that the Company would find a sub-tenant for the building, which it has been unable to do primarily because of the abundance of commercial space available due to the poor economy. In 2010, loss on discontinued operations consisted of additional accrual to defend the Heyser lawsuit, as explained in Note 6, and the write-off of various receivables originated in 2007 and 2008 relating to the operations that were discontinued in 2008 and, through court proceedings in 2010, were determined to be doubtful of collection.