3. RESULTS OF OPERATIONS FOR MONTY’S RESTAURANT, MARINA AND OFFICE/RETAIL PROPERTY, COCONUT GROVE, FLORIDA

9 Months Ended

Sep. 30, 2011

3. RESULTS OF OPERATIONS FOR MONTY’S RESTAURANT, MARINA AND OFFICE/RETAIL PROPERTY, COCONUT GROVE, FLORIDA

The Company, through two 50%-owned entities, Bayshore Landing, LLC (“Landing”) and Bayshore Rawbar, LLC (“Rawbar”), (collectively, “Bayshore”) owns a restaurant, office/retail and marina property located in Coconut Grove (Miami), Florida known as Monty’s (the “Monty’s Property”).

In March 2011 Bayshore amended its loan agreement with the same bank. Effective March 11, 2011 the principal balance of the loan was paid down by approximately $1.6 million to $8.8 million with the proceeds of the restricted cash balance and the remaining restricted cash balances were released by the bank. The loan is to be repaid in monthly installments of approximately $81,500 including principal and interest. Interest remains at the same terms, and the swap agreement remains in place for the reduced balance. The note is due, with a balloon payment on August 19, 2020. The agreement with the bank contains certain covenants with which the Company is in compliance. In conjunction with this loan amendment Bayshore was required to pay down the interest rate swap contract liability by $198,400, as discussed in Note 7 below.

Summarized combined statements of income for Landing and Rawbar for the three and nine months ended September 30, 2011 and 2010are presented below (Note: the Company’s ownership percentage in these operations is 50%):

Summarized Combined statements of income Bayshore Landing, LLC and Bayshore Rawbar, LLC	For the three months ended September 30, 2011			For the three months ended September 30, 2010			For the nine months ended September 30, 2011			For the nine months ended September 30, 2010

Revenues:
Food and Beverage Sales	$	1,219,000		$	1,124,000		$	4,515,000		$	4,268,000
Marina dockage and related		243,000			320,000			800,000			939,000
Retail/mall rental and related		158,000			159,000			452,000			455,000
Total Revenues		1,620,000			1,603,000			5,767,000			5,662,000

Expenses:
Cost of food and beverage sold		344,000			305,000			1,266,000			1,159,000
Labor and related costs		255,000			291,000			845,000			917,000
Entertainers		49,000			49,000			145,000			144,000
Other food and beverage related costs		113,000			128,000			420,000			423,000
Other operating costs		71,000			88,000			141,000			219,000
Repairs and maintenance		76,000			80,000			290,000			201,000
Insurance		150,000			132,000			404,000			417,000
Management and professional fees		93,000			69,000			253,000			195,000
Utilities		71,000			78,000			195,000			203,000
Ground rent		220,000			209,000			666,000			628,000
Interest		166,000			201,000			533,000			625,000
Depreciation and amortization (a)		167,000			176,000			650,000			536,000
Realized loss on interest rate swap (Note 7)		—			—			198,000			—
Total Expenses		1,775,000			1,806,000			6,006,000			5,667,000

Net income (loss)	$	(155,000	)	$	(203,000	)	$	(239,000	)	$	(5,000	)

(a)

Includes approximately $145,000 loan costs which were fully amortized in conjunction with the Monty’s loan modification in March 2011.