XML 14 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 2 - Concession Agreement and Disposition of Assets
3 Months Ended
Mar. 31, 2014
Concession Agreement Disclosure [Abstract]  
Concession Agreement Disclosure [Text Block]

2. Concession Agreement and Disposition of Assets


In 2010, the Company entered into a five-year agreement with a large theme-park operator to provide approximately 4,300 lockers under a locker concession arrangement. The Company retained ownership of the lockers and received a portion of the revenue generated by the locker operations. Under appropriate accounting guidance, the Company capitalized its costs related to the concession agreement and was depreciating such costs over the five-year term of the agreement. The Company recognized its portion of the revenue as it was collected.


In February 2014, the Company sold the lockers, kiosks and other assets related to that locker concession arrangement to a third party and entered into a subcontract agreement pursuant to which the third party agreed to perform the locker concession and management services previously performed by the Company for the theme-park operator in exchange for the right to receive all of the payments owed to the Company under such arrangement. The Company received $1,218,075 in total consideration for the disposition of these assets. Net of a holdback amount of $90,000, the Company received proceeds of $1,128,075 at closing of which $120,000 was used to make a principal payment on the Company’s outstanding term loan (see Note 8) and the remainder was used for working capital and general corporate purposes. Additionally, in connection with the sale of these assets, the Company and the third party agreed to an amendment to a settlement agreement previously executed between the two parties (see Note 9) whereby payments the Company had been making to the third party pursuant to the settlement agreement were eliminated. Accordingly, the Company wrote-off the outstanding balance of its accrued settlement of $273,000 and recorded a gain, net of selling costs, of $703,439 in February 2014 in connection with the sale of the locker concession assets and amendment to the settlement agreement.