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Discontinued Operations
 9 Months Ended
Sep. 30, 2012
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

Note 16 — Discontinued Operations

 

In an effort to improve working capital, cure debt defaults and pay down debts, on June 15, 2012, the Company sold and licensed those of its assets (including equipment, tooling, certain patents and trademarks) (the “TDG Assets”) that comprised its tactical defense group, which engaged in the business of selling and licensing products and providing services, directly and indirectly, to military, defense and security organizations (the “Business”). We recorded a gain of $5,837,607 from the asset sale.

 

In accordance with ASC 205-20, the sale of the TDG Assets have been accounted for as discontinued operation. Accordingly, the operating results of the TDG Assets for the three and nine months ended September 30, 2012 and 2011 have been reclassified as discontinued operations on the unaudited Consolidated Statement of Operations. Below is a summary of these results:

 

    For Three Months     For Nine Months  
    Ended September 30,     Ended September 30,  
    2012     2011     2012     2011  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
                         
Sales of Products   $ —     $ 1,441,758     $ 1,768,754     $ 5,625,957  
Sales of Engineering Services     —       160,396       358,921       701,258  
                                 
Total Sales     —       1,602,154       2,127,675       6,327,215  
                                 
Total Cost of Sales     —       757,917       1,273,907       3,097,887  
                                 
Gross Profit     —       844,237       853,768       3,229,328  
                                 
Operating Expenses:                                
Research and Development     —       173,254       295,138       516,164  
Selling and Marketing     —       79,910       200,378       325,806  
General and Administrative     —       —       —       —  
Depreciation and Amortization     —       —       —       —  
Interest Expense on Senior Debt*     —       127,200       353,584       367,200  
Amortization Senior Debt Discount*     —       63,668       752,248       188,927  
                                 
Income (Loss) from Discontinued Operations     —       400,205       (747,580 )     1,831,231  
                                 
Gain (Loss) on Disposal of Discontinued Operations     (65,056 )   $ —       5,837,607       —  
Provision (Benefit) for Income Taxes     —       —       —       —  
                                 
Net Income (Loss) from Discontinued Operations     (65,056 )     400,205       5,090,027       1,831,231  
                                 
Basic Income (Loss) per Share   $ (0.0002 )   $ 0.0015     $ 0.0192     $ 0.0069  
Diluted Income (Loss) per Share   $ (0.0002 )   $ 0.0011     $ 0.0144     $ 0.0052  
Weighted-average Shares Outstanding Basic     265,259,348       263,624,718       265,259,348       263,608,333  
Diluted     353,357,361       351,357,361       353,357,361       351,706,346  

 

* Amounts reported represent the interest expense and the amortization of the discount on the Senior Term debt that was required to be repaid from the proceeds of the TDG Asset sale.