XML 34 R7.htm IDEA: XBRL DOCUMENT

Recapitalization and Reorganization	3 Months Ended
Aug. 31, 2011
Recapitalization and Reorganization
Recapitalization and Reorganization	NOTE 2 – RECAPITALIZATION AND REORGANIZATION Acquisition of Redtone China. On August 2, 2010, the Company entered into a Share Exchange Agreement (“SEA”) with Redtone Technology Sdn. Bhd. and Redtone International Berhad, both of which are incorporated in Malaysia. Upon the closing of the transactions contemplated in the SEA, the Company will acquire 100% ownership of Redtone China. For accounting purposes, the acquisition of Redtone China by Hotgate has been recorded as a reverse acquisition of a public company and a recapitalization of Redtone China based on factors demonstrating that Redtone is the acquirer for accounting purposes. This reverse acquisition is accounted for as a recapitalization of Redtone with the common stock of the public company. Therefore, the historical operations of Redtone are included in the consolidated statements of operations for the comparative period.

Recapitalization and Reorganization

3 Months Ended

Aug. 31, 2011

NOTE 2 – RECAPITALIZATION AND REORGANIZATION

Acquisition of Redtone China.

On August 2, 2010, the Company entered into a Share Exchange Agreement (“SEA”) with Redtone Technology Sdn. Bhd. and Redtone International Berhad, both of which are incorporated in Malaysia. Upon the closing of the transactions contemplated in the SEA, the Company will acquire 100% ownership of Redtone China.

For accounting purposes, the acquisition of Redtone China by Hotgate has been recorded as a reverse acquisition of a public company and a recapitalization of Redtone China based on factors demonstrating that Redtone is the acquirer for accounting purposes. This reverse acquisition is accounted for as a recapitalization of Redtone with the common stock of the public company. Therefore, the historical operations of Redtone are included in the consolidated statements of operations for the comparative period.