- 4 - domestic operating companies including Adult Fun Center, Inc. (Adult Fun), a domestic corporation. Prior to the years in issue, Adult Fun was an adult novelty store with its principal place of business in Phoenix, Arizona. Petitioner operated a live entertainment night club in Toledo, Ohio. Petitioner also provided operational, management, and consulting services to adult entertainment clubs doing business as "Deja Vu". Donald Krontz (Mr. Krontz), who served as petitioner's president during the subject years, made all of petitioner's executive decisions in consultation with Mr. Mohney. In 1990, Adult Fun relocated to a store adjoining petitioner in Toledo, Ohio, to sell adult lingerie. Adult Fun solicited funds from petitioner to remodel its new location and to start-up its business there. Beginning on February 9, 1990, petitioner made unsecured cash advances to Adult Fun that were evidenced by the following promissory notes (Notes): Date Amount Interest Rate Repayment Schedule Apr. 13, 1990 $6,117 10% $150/month May 5, 1990 2,000 10% 500/month June 6, 1990 17,468 10% 250/month Aug. 8, 1990 3,000 10% 200/month Oct. 18, 1990 1,000 10% previously agreed Total 29,585 The advances were not, in all instances, contemporaneous with the execution of a note. For example, petitioner paid $5,000 to a construction firm on February 9, 1990, and it paid an additional amount to the same firm on April 13, 1990. These funds, which were paid to remodel Adult Fun’s new location, were reflected inPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011