DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2012

Discontinued Operations

NOTE 8. DISCONTINUED OPERATIONS

On September 14, 2010 (see Note 1), the Company ceased operations of the Company’s wholly owned subsidiary Iconic Imports. Accordingly, the assets and liabilities and operations of Iconic Imports, Inc. have been presented as discontinued operations in the accompanying consolidated financial statements for the periods presented.

For the six months ended June 30, 2012 and 2011, loss from discontinued operations consisted of:

	2012			2011
Revenues	$	-		$	-
Cost of goods sold		-			-
Gross profit		-			-
Selling, general and administrative expenses		-			-
Operating income		-			-
Interest expense (including amortization of debt discounts of $6,286 and $6,286, respectively)		39,492			39,311
Loss before income tax provision		(39,492	)		(39,311	)
Income tax provision		-			-
Loss from discontinued operations	$	(39,492	)	$	(39,311	)

The assets and liabilities of Iconic Imports at June 30, 2012 and December 31, 2011 consisted of:

	2012			2011
Assets
Current assets	$	-		$	784
Total assets	$	-		$	784
Liabilities
Current portion of debt	$	395,000		$	395,000
Accounts payable		1,219,768			1,219,768
Accrued interest payable		241,389			208,183
Other accrued expenses and other current liabilities		1,651,092			1,651,092
Current liabilities		3,507,249			3,474,043
Long – term debt		1,623,430			1,617,144
Total liabilities		5,130,679			5,091,187
Net liabilities	$	(5,130,679	)	$	(5,091,187	)