v3.4.0.3
4. DISCONTINUED OPERATIONS
 9 Months Ended
Mar. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]  
4. DISCONTINUED OPERATIONS

The Company has included two businesses in discontinued operations; the portfolio of Internet Marketing Assets business which was divested July 30, 2015 (see note 3) and the business of Infinity which was discontinued after the share exchange with 30DC DE on September 10, 2010. Prior to the share exchange, Infinity withdrew its election to operate as a Business Development Company (“BDC”) under the Investment Company Act of 1940 (“1940 Act”). Infinity historically operated as a non-diversified, closed-end management investment company and prepared its financial statements as required by the 1940 Act. 30DC is no longer actively operating the BDC and the assets, liabilities and results of operations of Infinity’s former business are shown as discontinued operations in the Company’s financial statements subsequent to the share exchange with 30DC. Investment companies report assets at fair value and the Company has continued to report investment assets in discontinued operations on this basis.

 

Results of Discontinued Operations for the                  
                   
   Nine Months Ended March 31, 2016  Nine Months Ended March 31, 2015
    IM Business    Infinity    Total    IM Business    Infinity    Total 
Revenues  $31,275   $—     $31,275   $280,575   $—     $280,575 
Operating expenses   3,939    3,734    7,673    385,277    4,152    389,429 
Income (Loss) from operations   27,336    (3,734)   23,602    (104,702)   (4,152)   (108,854)
Unrealized gain (loss) on marketable securities   —      (19,292)   (19,292)   —      (29,563)   (29,563)
Loss on Divestiture   (212,563)   —      (212,563)   —      —      —   
                               
Net Income (Loss)  $(185,227)  $(23,026)  $(208,253)  $(104,702)  $(33,715)  $(138,417)
                               
                               

 

   Three Months Ended March 31, 2016  Three Months Ended March 31, 2015
    IM Business    Infinity    Total    IM Business    Infinity    Total 
Revenues  $5,871   $—     $5,871   $56,612   $—     $56,612 
Operating expenses   720    1,225    1,945    120,426    1,301    121,727 
Income (Loss) from operations   5,151    (1,225)   3,926    (63,814)   (1,301)   (65,115)
Unrealized gain on marketable securities   —      14,354    14,354    —      (19,313)   (19,313)
                               
Net Income (Loss)  $5,151   $13,129   $18,280   $(63,814)  $(20,614)  $(84,428)
                               

 

Assets and Liabilities of Discontinued Operations as of                  
                   
   March 31, 2016  June 30, 2015
    IM Business    Infinity    Total    IM Business    Infinity    Total 
                               
Assets                              
                               
Cash  $—     $—     $—     $—     $—     $—   
Prepaid expenses   —      —      —      —      —      —   
Marketable securities   —      61,479    61,479    —      80,771    80,771 
                               
Total Current Assets   —      61,479    61,479    —      80,771    80,771 
                               
Intangible Assets   —      —      —      35,680    —      35,680 
Goodwill   —      —      —      255,495    —      255,495 
                               
Total Assets of Discontinued Operations  $—     $61,479   $61,479   $291,175   $80,771   $371,946 
                               
Liabilities                              
                               
Accounts payable  $—     $19,375   $19,375   $—     $19,375   $19,375 
Accrued expenses   —      71,466    71,466    —      67,732    67,732 
Notes payable   —      49,550    49,550    —      51,550    51,550 
Due to related parties   —      21,000    21,000    —      21,000    21,000 
                               
Total Liabilities of Discontinued Operations  $—     $161,391   $161,391   $—     $159,657   $159,657 

 

Notes Payable

 

Included in liabilities of discontinued operations at March 31, 2016 and June 30, 2015 are $49,550 and $51,050 respectively in notes payable plus related accrued interest of which are all in default for lack of repayment by their due date.

 

For the nine months ended March 31, 2016 and March 31, 2015 the Company incurred interest expense on notes payable of $3,734 and $4,152 respectively which is included in the Statement of Operations under income (loss) from discontinued operations.

 

Marketable Securities

 

At March 31, 2016 the fair value of marketable securities held for sale was $61,479 which included cumulative net unrealized losses of $4,931. At June 30, 2015 the fair value of marketable securities held for sale was $80,771 which included cumulative net unrealized gains of $14,361.