Note 3 - Discontinued Operations - Quepasa Games

12 Months Ended

Dec. 31, 2012

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

Note 3 —Discontinued Operations – Quepasa Games

The games development business of our Brazilian subsidiary, Quepasa Games, were discontinued on June 30, 2012 in order to streamline efforts to improve efficiencies, reduce costs and focus on the Company’s core social network business. In connection with this closure, the Company transferred the hosting responsibilities of its games Wonderful City Rio and Amazon Alive to third parties, Quepasa Games office in Curitiba, Brazil was closed and all Quepasa Games employees were terminated. The games business closure qualifies as a discontinued operation and accordingly the Company has excluded results for Quepasa Games operations from its continuing operations in the Consolidated Statement of Operations for all periods presented.  The following table shows the results of Quepasa Games included in the loss from discontinued operations:

	For the Years Ended December 31,
	2012			2011
Games Revenues	$	840,190		$	1,144,443
Games Expenses		1,032,366			1,553,450
Product development and content		552,563			1,609,917
Depreciation and amortization		16,102			227,498
Exit costs		431,418
Loss on disposable of assets		48,084
Stock-based compensation		151,508			730,758
Loss on impairment of goodwill		2,288,776			1,409,127
Total		4,520,817			5,530,750
Loss from discontinued operations attributable to Quepasa Games	$	(3,680,627	)	$	(4,386,307	)

The major classes of assets and liabilities of discontinued operations on the balance sheet are as follows:

	December 31, 2012		December 31, 2011
Assets
Accounts receivable, prepaid and other current assets	$	-	$	149,796
Goodwill, net		-		2,402,446
Property and equipment, net		-		90,075
Other assets		-		151,591
Total assets of discontinued operations	$	-	$	2,793,908
Liabilities
Accounts payable and accrued expenses	$	1,434	$	693,947
Total current liabilities of discontinued operations	$	1,434	$	693,947