v2.4.0.6
Note 8 Discontinued Operations
 3 Months Ended
Sep. 30, 2012
Notes  
Note 8 Discontinued Operations

 

NOTE 8

DISCONTINUED OPERATIONS

 

Prior to April 25, 2012, the closing date of the APS asset acquisition by Oxysonix (see Note 7, Acquisition, above), the Company’s operations exclusively involved research and development through its wholly owned EcoSystem Technologies, LLC subsidiary (“EcoSystem”) and its patent pending technologies for the recycling of carbon dioxide. These operations were discontinued on April 1, 2012 in anticipation of the Company’s new research and development operations with the intellectual properties owned by Oxysonix, specifically including its patent pending fuel refining technology. The financial results of EcoSystem and the Company’s associated operations have been presented as discontinued operations during the nine months ended September 30, 2012 and 2011. As a result, the Company realized a gain from discontinued operations of $457,515 and a loss from discontinued operations of $31,733, respectively, for the nine months ended September 30, 2012 and 2011. The Company has recognized approximately $130,000 in liabilities from the discontinued operations. The Company is exploring various options for disposing of these liabilities and anticipates disposition of these liabilities by the end of the second quarter of next year. The Company does not incur any additional costs on these liabilities. The components of the loss from discontinued operations for these operations for the nine months ended September 30, 2012 and 2011 are as follows:

 

 

 

 

Nine Months Ended

   

 

 

 

 

 

9/30/2012

 

9/30/2011

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

$

$

 

Cost of revenues

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

 

 

 

10,000

General and administrative expenses

 

 

 

 

 

 

 

21,733

Total operating expenses

 

 

 

 

 

 

 

(31,733)

 

 

 

 

 

 

 

 

 

Operating loss

 

 

 

 

 

 

 

(31,733)

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

 

 

 

Gain on extinguishment

 

 

 

 

 

457,515

 

 

Total other income (expense)

 

 

 

 

 

457,515

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before provision for income taxes

 

 

 

 

 

457,515

 

(31,733)

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total income (loss) from discontinued operations

 

 

 

 

$

457,515

$

(31,733)