Note 9 – Prepaid and Other Assets

Prepaid and other assets are summarized as follows (dollars in thousands):

	June 30, 2011		December 31, 2010
Prepaid and other current assets
Prepaid expenses	$	1,414	$	1,145
Prepaid taxes		723		1,044
Deposits		154		151
Note receivable		2,250		--
Other		1,247		1,196
Total prepaid and other current assets	$	5,788	$	3,536

Other non-current assets
Other non-cinema and non-rental real estate assets	$	1,134	$	1,134
Long-term deposits		288		294
Deferred financing costs, net		3,972		3,830
Interest rate swap at fair value – non-qualifying hedge		--		446
Other receivable		--		6,750
Tenant inducement asset		1,275		1,327
Straight-line rent asset		2,881		2,627
Mortgage notes receivable		2,095		--
Other		--		128
Total non-current assets	$	11,645	$	16,536

Investment in Notes Receivable

Short Term Note Receivable

On May 15, 2011, in conjunction with a potential purchase of a cinema, we lent $2.3 million to a cinema operator in exchange for a 90-day note receivable. The note is securitized by three cinemas' leases and bears an annualized interest of 9.9%.

Other Receivable

On June 14, 2011, we received $6.8 million with respect to the principal and interest owed on a note previously received in connection with a settlement agreement. We believe that further amounts are owed under that note, and we have begun litigation to collect such amounts.

Mortgage Notes Receivable

On February 14, 2011, we purchased for $2.8 million mortgage notes secured by certain properties. These mortgage notes were in default on the date of acquisition and were acquired with the intention of acquiring the underlying properties. In February 2011, we foreclosed on one of these properties valued at $859,000, which is currently classified as a property held for development. We are currently pursuing our remedies for the other mortgage notes, which at June 30, 2011 remained in default. We anticipate that we will ultimately acquire the remaining properties.