Gain from Sale of Discontinued Operations (Reprints and ePrints business line)

12 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Gain from Sale of Discontinued Operations (Reprints and ePrints business line)

Note 10.

Gain from Sale of Discontinued Operations (Reprints and ePrints business line)

On June 30, 2017, we sold the intangible assets of our Reprints and ePrints business line, but specifically excluding billed accounts receivable and respective liabilities, pursuant to an Asset Purchase Agreement dated June 20, 2017. The aggregate net consideration for the sale is comprised of $450,000 paid on the closing date, and earn-out payments of 45% of gross margin over the 30 month period subsequent to the closing date. We have made a policy election to record the contingent consideration when the consideration is determined to be realizable (each 6-month period ending subsequent to the closing date), which amounted to $256,995 for the year ended June 30, 2018.

The gain from sale of discontinued operations for the year ended June 30, 2017 consists of the following:

Description	Amount
Net cash paid on the closing date	$	450,000
Less:
Stock compensation - issuance of stock options		(111,374	)
Stock compensation - modification of stock options		(82,430	)
Legal fees		(15,000	)
Total	$	241,196

The current assets and liabilities related to the Reprints and ePrints business line were $1,281,598 and $1,806,901 as of June 30, 2017. In addition, revenue and expenses from discontinued operations were as follows:

	Year Ended June 30, 2017
Revenue	$	7,936,379
Cost of revenue		7,362,934
Income from discontinued operations	$	573,445