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Deconsolidation of Former French Subsidiary (TAAG) | 6 Months Ended
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Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract] |
Deconsolidation of Former French Subsidiary (TAAG) | Note 6. Deconsolidation of Former French Subsidiary (TAAG) On August 18, 2014 the Board of Directors of the Company authorized management to commit to a plan to sell TAAG. The Company concluded that TAAG’s printing operations in the major geographical area of France were not aligned with the Company’s long term strategy. The plan to dispose of TAAG will have a material effect on the Company’s revenue as TAAG accounted for 22.1% and 22.6% of consolidated revenue for the years ended June 30, 2014 and 2013, respectively. Accordingly, the operations of TAAG are classified as discontinued operations. Comparative information for prior periods have been restated to segregate the assets, liabilities, revenue, expenses, and cash flows related to TAAG as discontinued operations. The Board of Directors of the Company authorized the immediate disposal of the Company’s former subsidiary TAAG at a reasonable price in relation to its current fair value, and in the event such sale was not consummated by September 10, 2014, that management proceed with an insolvency filing by TAAG under French law. On September 15, 2014, the French Tribunal de Commerce appointed an Administrator for TAAG following a declaration of insolvency by our legal representative, and on October 6, 2014 TAAG entered into a judicial liquidation procedure. As a result, effective September 15, 2014, the Company relinquished control of TAAG to the Tribunal and TAAG ceased to be our subsidiary and was deconsolidated from our financial statements. The Company deconsolidated the assets, liabilities and other comprehensive income of TAAG with a resulting non-cash gain on deconsolidation of $1,548,295 recorded on the consolidated statements of operations. The Company has determined based on discussion with French counsel that it is remote that the Company will be generally liable for the unsatisfied liabilities of TAAG as a result of the insolvency process in France. In addition, the Company has also determined based on discussion with French counsel that it is probable that the Company will be liable for specific liabilities associated with TAAG in the amount of $187,907, and as a result, the Company has recorded a liability for that amount as of December 31, 2014. The carrying amounts of the major classes of assets and liabilities associated with discontinued operations as of June 30, 2014 were as follows:
Assets |  |  |  |
Current assets: |  |  |  |
Cash and cash equivalents |  | $ | 191,259 |
Accounts receivable: |  |  |  |
Trade receivables, net of allowance |  |  | 746,685 |
Due from factor |  |  | 116,762 |
Inventory |  |  | 192,245 |
Prepaid expenses and other current assets |  |  | 234,232 |
Total current assets of discontinued operations |  |  | 1,481,183 |
Other assets: |  |  |  |
Property and equipment, net of accumulated depreciation |  |  | 418,460 |
Deposits and other assets |  |  | 453,752 |
Total non-current assets of discontinued operations |  |  | 872,212 |
Total assets of discontinued operations |  | $ | 2,353,395 |
Liabilities |  |  |  |
Current liabilities: |  |  |  |
Accounts payable and accrued expenses |  | $ | 2,960,378 |
Capital lease obligations, current |  |  | 324,802 |
Notes payable, current |  |  | 11,601 |
Deferred revenue |  |  | 158,359 |
Other liability |  |  | 143,304 |
Total current liabilities of discontinued operations |  |  | 3,598,444 |
Long term liabilities: |  |  |  |
Capital lease obligations, long term |  |  | 113,415 |
Total long term liabilities of discontinued operations |  |  | 113,415 |
Total liabilities of discontinued operations |  | $ | 3,711,859 |
Revenue and expenses from discontinued operations were as follows:
|  | Three Months Ended |  | Six Months Ended |
|  | December 31, |  | December 31, |
|  | 2014 |  | 2013 |  | 2014 |  | 2013 |
Revenue |  | $ | - |  | $ | 2,271,186 |  | $ | 1,164,314 |  | $ | 4,199,522 |
Cost of revenue |  |  | - |  |  | 1,366,330 |  |  | 849,174 |  |  | 2,487,393 |
Gross profit |  |  | - |  |  | 904,856 |  |  | 315,140 |  |  | 1,712,129 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative |  |  | - |  |  | 802,687 |  |  | 660,500 |  |  | 1,574,403 |
Depreciation and amortization |  |  | - |  |  | 70,194 |  |  | 44,027 |  |  | 139,994 |
Total operating expenses |  |  | - |  |  | 872,881 |  |  | 704,527 |  |  | 1,714,397 |
Income (loss) from discontinued operations before other income (expenses) |  |  | - |  |  | 31,975 |  |  | (389,387) |  |  | (2,268) |
Other income (expenses): |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | - |  |  | (10,927) |  |  | (5,957) |  |  | (22,581) |
Income (loss) from discontinued operations |  | $ | - |  | $ | 21,048 |  | $ | (395,344) |  | $ | (24,849) |

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- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228 + Details
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