Discontinued Operations - MAB-C

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Note 4 - Discontinued Operations - MAB-C

4.     Discontinued Operations – MAB-C

On March 30, 2015 the Company transferred its 49% interest in MAB-C to Mabwe Minerals Inc., a South Dakota corporation.  As a result of this this transfer the Company is now reflecting the formerly stated assets, liabilities, revenue, expenses, gains and losses as results from discontinued operations.  At December 31, 2014, as a result of the December 28, 2014 deconsolidation the Company had no assets or liabilities as a result of discontinued operations.  The Company had not, since inception, recognized any revenue from these discontinued operations.  Expenses from discontinued operations were the result of cost associated with site development activities as well as legal fees and court costs associated with the Company’s 49% investment in MAB-C.  

MABWE MINERALS INC.
(DBA FONON CORPORATION)
STATEMENTS OF DISCONTINUED OPERATIONS
(UNAUDITED)
	For the Three Months Ended June 30,											For the Six Months Ended June 30,
	2015		2014			Change ($)			Change (%)			2015		2014			Change ($)			Change (%)
REVENUE, NET	$	-	$	-		$	-			0	%	$	-	$	-		$	-			0	%
COST OF SALES		-		-			-			0	%		-		-			-			0	%
GROSS PROFIT		-		-			-			0	%		-		-			-			0	%
OPERATING EXPENSES
Salary expense and salary related costs		-		-			-			0	%		-		-			-			0	%
Professional, consulting and marketing fees		-		20,471			(20,471	)		-100	%		-		32,889			(32,889	)		-100	%
Extraction Cost		-		78,552			(78,552	)		-100	%		-		209,290			(209,290	)		-100	%
Site Development Cost		-		17,600			(17,600	)		-100	%		-		34,596			(34,596	)		-100	%
Selling, General and administrative		-		15,666			(15,666	)		-100	%		-		33,415			(33,415	)		-100	%
Depreciation		-		199			(199	)		-100	%		-		398			(398	)		-100	%
Total operating expenses		-		132,488			(132,488	)		-100	%		-		310,588			(310,588	)		-100	%
Loss from operations		-		(132,488	)		132,488			-100	%		-		(310,588	)		310,588			-100	%
OTHER INCOME (EXPENSE)
Interest Income (Expense)		-		(13,868	)		13,868			-100	%		-		(29,686	)		29,686			-100	%
Loss on Investment - W.G.B. Kinsey - Equity Method		-		-			-			0	%		-		(12,367	)		12,367			-100	%
Gain on deconsolidation, net of impairment of loan from MAB-C		-		-									-		-			-			0	%
Total other income (expense)		-		(13,868	)		13,868			-100	%		-		(42,053	)		42,053			-100	%
Income (loss) before income taxes		-		(146,356	)		146,356			-100	%		-		(352,641	)		352,641			-100	%
Income tax benefit		-		-			-			0	%		-		-			-			0	%
NET INCOME (LOSS)	$	-	$	(146,356	)	$	146,356			-100	%	$	-	$	(352,641	)	$	352,641			-100	%

MABWE MINERALS INC.

(DBA FONON CORPORATION)

BALANCE SHEETS FROM DISCONTINUED OPERATIONS

	(UNAUDITED)
	June 30, 2015		December 31, 2014
Assets of discontinued operations		-		-
Liabilities of discontinued operations		-		-