v2.3.0.11

Discontinued Operations and Disposal Groups

3 Months Ended

Jun. 30, 2011

Discontinued Operations and Disposal Groups

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 10 – DISCONTINUED OPERATIONS

On May 5, 2011, we entered into a Software Product Line Purchase Agreement to sell our QuickVerse product line to WORDsearch Corp., L.L.C.  As of June 30, 2011, the closing of the Software Product Line Purchase Agreement, which is transitional in nature and expected to be ongoing through approximately the end of August, 2011 but in no event any later than May 5, 2012, had commenced.  As a result of the decision to sell the QuickVerse product line, we have classified this asset as discontinued operations at June 30, 2011.  While we will not recognize a gain or loss from the disposition of the asset until the closing of the transaction takes place, we have recorded the major classes of assets and liabilities for the QuickVerse product line as presented below.

Assets:			June 30, 2011
Inventories:
	Raw materials		$29,838
	Finished goods		12,954
	Total inventories		$42,792
Other current assets			1,923
Intangible assets, net			9,083
	Total assets		$53,798

Liabilities:			June 30, 2011
Accrued royalties			$644,113
	Total liabilities		$644,113

The following table presents the results of operations of our continuing operations and discontinued operations for the six months ended June 30, 2011:

							Continuing Operations	Discontinued Operations	Total
Gross revenues							$51,060	$655,807	$706,867
	Less estimated sales returns and allowances						(13,820)	(39,572)	(53,392)
Net revenues							37,240	616,235	653,475
Cost of sales							16,570	220,490	237,060
	Gross profit						20,670	395,745	416,415
Operating expenses:
	Advertising and direct marketing						13,897	52,515	66,412
	Sales and marketing wages						42,077	39,961	82,038
Total sales and marketing							55,974	92,476	148,450
	Personnel costs						185,847	---	185,847
	Amortization and depreciation						28,981	4,847	33,828
	Research and development						---	103,621	103,621
	Rent						18,391	---	18,391
	Other general and administrative costs						216,884	9,303	226,187
Total general and administrative							450,103	117,771	567,874
Impairment expense							217,972	---	217,972
	Total operating expenses						724,049	210,247	934,296
Income (loss) from operations							(703,379)	185,498	(517,881)
	Other income (expenses), net						(9,497)	---	(9,497)
	Gain on debt settlement						368,051	---	368,051
Income (loss) before income taxes							(344,825)	185,498	(159,327)
	Income tax (provision) benefit						63,273	(63,273)	---
Net income (loss)							$(281,552)	$122,225	$(159,327)

For comparative purposes, the following table presents the results of operations of our continuing operations and discontinued operations for the six months ended June 30, 2010:

							Continuing Operations	Discontinued Operations	Total
Gross revenues							$102,991	$860,848	$963,839
	Less estimated sales returns and allowances						(8,608)	(50,484)	(59,092)
Net revenues							94,383	810,364	904,747
Cost of sales							42,070	311,227	353,297
	Gross profit						52,313	499,137	551,450
Operating expenses:
	Advertising and direct marketing						22,384	60,681	83,065
	Sales and marketing wages						58,267	48,474	106,741
Total sales and marketing							80,651	109,155	189,806
	Personnel costs						235,440	---	235,440
	Amortization and depreciation						35,557	8,602	44,159
	Research and development						---	95,900	95,900
	Rent						46,439	---	46,439
	Other general and administrative costs						238,204	10,867	249,071
Total general and administrative							555,640	115,369	671,009
	Total operating expenses						636,291	224,524	860,815
Income (loss) from operations							(583,978)	274,613	(309,365)
	Other income (expenses), net						(7,858)	---	(7,858)
Income (loss) before income taxes							(591,836)	274,613	(317,223)
	Income taxes						---	---	---
Net income (loss)							$(591,836)	$274,613	$(317,223)

X

- Details

Name:	us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix:	us-gaap
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 2: 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 3: 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 4: 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 5: 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=6390789&loc=d3e2443-110228

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: 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 8: 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 9: 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 10: 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

+ Details

Name:	us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix:	us-gaap
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration