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Incentive From Lessor
6 Months Ended
Jun. 30, 2013
Leases [Abstract]  
Incentive From Lessor

NOTE 9 – INCENTIVE FROM LESSOR

 

Landlord construction contributions usually take the form of up-front cash.  Depending on the specifics of the leased space and the lease agreement, amounts paid for structural components are recorded during the construction period as leasehold improvements or the landlord construction contributions are recorded as an incentive from lessor.  The incentive from lessor is amortized over the life of the lease which is 10 years.  

 

The Company received $590,000 from the Company’s landlords as construction contributions pursuant to agreed-upon terms in its lease agreement with Westfield Century City.  

 

As of June 30, 2013, the Company received a total of $403,750 from the landlords as construction contributions related to the Topanga lease.

 

Amortization of the incentive from lessor was $15,475 and $25,540 for the three and six months ended June 30, 2013, and $14,506 and $24,507 for the three and six months ended June 30, 2012.  

 

The Company is currently building out its new Glendale, CA location.  Through June 30, 2013, the Company received $166,250 from the Company’s landlord as construction contributions pursuant to agreed-upon terms in its lease agreement with Glendale II Mall Associates, LLC to lease approximately 5,900 square feet in the Westfield Glendale Galleria Shopping Center. A total of $166,250 of the $475,000 was received in the current quarter and an additional $166,250 is anticipated in the third quarter of 2013.