Reorganizations | 3 Months Ended |
|---|---|
Sep. 30, 2011 | |
| Reorganizations | |
| Reorganization Items, Description of Nondebtor Reorganization Items, (Gain) Loss on Settlement of Other Claims, Net | NOTE 7 – GAIN ON DEBT SETTLEMNT
During the nine months ended September 30, 2011, we recognized income from debt forgiveness totaling $558,409. This income from debt forgiveness mainly results from agreements reached with certain of our royalty content providers pursuant to which reductions in the total accrued royalty balance owed by us to them were finalized, which agreements were part of a broad initiative on our part arising in connection with our sale to WORDsearch of our QuickVerse product line (see Note 11). In addition, the income from debt forgiveness results from settlement agreements involving certain of our vendors whom trade payables were owed by us to them as well as a settlement with a former shareholder with whom we owed a note payable to. See Note 5. This has been treated as a gain from extinguishment of debt and included in Gain on debt settlement on our Condensed Consolidated Statement of Operations. |