Note 11 - Discontinued Operations: Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

Other current liabilities from discontinued operations:	September 30, 2012	December 31, 2011
Accrued royalties	$114,368	$153,383
Other current liabilities from discontinued operations	$114,368	$153,383

The following table presents the results of operations of our discontinued operations for the nine months ended September 30, 2012 and 2011:

Nine Months Ended September 30,	2012	2011
Gross revenues	$---	$658,283
Less estimated sales returns and allowances	---	40,727
Net revenues	---	699,010
Cost of sales	---	158,741
Gross profit	---	540,269
Operating expenses:
Advertising and direct marketing	---	54,646
Sales and marketing wages	---	101,777
Total sales and marketing	---	156,423
Research and development	---	142,411
Rent	---	20,636
Other general and administrative costs	---	48,734
Total general and administrative	---	211,781
Income from operations of discontinued component	---	172,065
Gain on sale of software product line	---	972,082
Impairment expense	---	(288,587)
Gain on debt settlement	26,087	523,543
Income tax (provision)	---	---
Income from discontinued operations, net of taxes	$26,087	$1,379,103

- Definition

Tabular disclosure of disposal groups, which may include 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 classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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