Note 4 - Disposal of Subsidiaries and Discontinued Operation: QBA's Assets, Liabilities, and Results (Tables)

6 Months Ended

Nov. 30, 2014

Tables/Schedules

QBA's Assets, Liabilities, and Results

	July 25, 2014	May 31, 2014
Assets
Cash and cash equivalents	$2,969,661	$1,687,392
Inventories	6,708	6,669
Accounts receivable	525	522
Other receivables and deposits	8,892	8,841
Property, plant and equipment, net	5,937	9,587
Total assets	2,991,723	1,713,011
Liabilities
Accounts payable	29,699	32,701
Accrued expenses and other payables	17,462	24,160
Total current liabilities	47,161	56,861
Net assets of QBA	2,944,562	1,656,150

The assets of QBA as of May 31, 2014 are classified as assets held for sale and liabilities in the condensed consolidated balance sheet.

The results of QBA during the period (up to date of disposal) are summarized as follows:

	From June 1, 2014 to July 25, 2014	Six months ended November 30, 2013
Revenue	$3	$409
Other income and gains	164	48,852
Service costs	-	(56)
Personnel cost	(93,580)	(75,309)
Depreciation expense	(3,689)	(97,317)
Administrative and other expenses	(6,916)	(29,805)
Net loss	(104,018)	(153,226)

The results of QBA for the six months ended November 30, 2014 and 2013, respectively, are reported as discontinued operations in the condensed consolidated statement of income and comprehensive income.

The gain on disposal of QBA is analyzed as follows:

Consideration received	4,565,936
Less: Net assets of QBA	(2,944,563)
Less: Goodwill arising in the acquisition of QBA	(610,386)
Gain on disposal	1,010,987