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DISCONTINUED OPERATIONS
 6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
DISCONTINUED OPERATIONS

NOTE 13 – DISCONTINUED OPERATIONS

 

On December 30, 2010, Blast entered into an Asset Purchase Agreement with GlobaLogix, Inc. (“GlobaLogix” and the “Purchase Agreement”).  Pursuant to the Purchase Agreement, Blast sold all of its Satellite Communications assets, rights and interests, including all goodwill, customer and vendor contracts (collectively “Satellite Contracts”), inventory, test equipment, software and other assets associated with its Satellite Communications operations to GlobaLogix in consideration for (a) $50,000; and (b) GlobaLogix agreeing to assume any and all liabilities, obligations and rights associated with the Satellite Contracts.  Additionally, GlobaLogix agreed to offer full-time employment to one of the Company’s employees in connection with the Purchase Agreement.  The $50,000 payment was received in January 2011.

 

Pursuant to the Purchase Agreement, the Company also agreed not to compete with GlobaLogix in connection with the Satellite Communications services in the United States or attempt to solicit any employees from GlobaLogix for a period of one year following the closing of the Purchase Agreement.

 

As a result of the consummation of the Purchase Agreement, the Company no longer has any operations or assets in connection with Satellite Communications and anticipates solely focusing its efforts, resources and operations moving forward on its Down-hole Solutions and Oil and Gas Production segments.

 

Net income (loss) from the discontinuance of satellite operations for the three and six months ended June 30, 2011 and 2010 is as follows:

 

  For the Three Months Ended   For the Six Months Ended
  June 30,   June 30,
  2011 2010   2011 2010
Revenues $ - $ 69,623   $               - $ 154,025
           
Operating Expenses:          
Cost of sales - 62,487   - 140,106
Selling, general and administrative - 2,716   - 4,445
Bad debts expense - -   3,686 -
Total operating expenses -   65,203     (3,686) 144,551
           
Net income (loss) from discontinued operations $ - $ 4,420   $ (3,686) $ 9,474

 

At June 30, 2011, bad debt expense of $3,686 related to a dated receivable balance from the discontinued satellite business which was determined to be uncollectible.