4. DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

4. DISCONTINUED OPERATIONS

NOTE 4 – DISCONTINUED OPERATIONS

On June 23, 2014, at a Board of Directors meeting, the Company approved the discontinuation of all activities of the Consulting segment. Accordingly, based on management’s intent at June 30, 2014, the Company discontinued the Consulting segment.

As a result the Company’s activities for the Consulting segment at June 30, 2014 are now limited to winding down our consulting business activities, realizing the value of the Consulting segment’s remaining assets and making tax and regulatory filings related to the Consulting segment.  Management’s goal is to liquidate all of the Consulting segment’s remaining assets as soon as practical while seeking to maximize stockholder value.  It is currently anticipated that all of the operations of the Consulting segment will be concluded in the third quarter of 2014, and that all significant obligations to pay or make provisions to satisfy all of its expenses and liabilities.  The Company intends to retain a sufficient amount of assets to ensure it is able to pay or satisfy all of the Consulting segment’s remaining expenses and liabilities.  Payroll and related costs and other expenses are currently anticipated to be incurred at least through September 30, 2014, in order to complete all required regulatory filings and audits. Accordingly, our estimate of expenses anticipated to be incurred from July 1, 2014, to September 30, 2014, have been accrued as of June 30, 2014, in our financial statements. 

  In conjunction with the discontinuance of operations, the Company recognized that all assets carrying amounts are already at their fair values less estimated cost to sell. The assets and liabilities of the discontinued operations are presented below under the captions ‘‘Assets of discontinued segment’’ and ‘‘Liabilities of discontinued segment,’’ respectively, in the accompanying Balance Sheets at June 30, 2014, and December 31, 2013, and consist of the following:

	June 30,		December 31,
	2014		2013
Assets of discontinued segment:
Cash and cash equivalents	$	64,311	$	409,882
Accounts receivable		24,000		10,581
Other receivable		-		50,000
Total current assets		88,311		470,463
Goodwill		-		3,299,566
Total assets	$	88,311	$	3,770,029
Liabilities of discontinued segment:
Accounts payable	$	84,879	$	110,373
Accrued expenses		890,677		125,130
Advances payable to related party		-		30,590
Total liabilities	$	975,556	$	266,093

In addition, the Company transferred investments, 13,073,455 shares of client stock, with a value at June 30, 2014 of $10,224,177, to continuing operations.  The investments had a value at December 31, 2013 of $5,105,891 (see Note 9).  Management intends to utilize these shares in on-going operations.

Amounts presented for the three and six months ended June 30, 2014 and 2013, have been reclassified to conform to the current presentation. The following table provides the amounts reclassified for the three and six months ended June 30, 2014 and 2013:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Amounts reclassified:
Consulting revenue	$	-		$	111,434		$	1,636,745.70		$	111,434
Consulting operating expenses		(1,098,269	)		(334,374	)		(1,305,477	)		(738,320	)
Selling and marketing		(14,515	)		(32,399	)		(24,221	)		(55,423	)
Impairment expense		(3,299,566	)		-			(3,299,566	)		-
Other income (expense)		3,432			(7,865	)		(1,725	)		(325,249	)
Total amount reclassified as discontinued operations	$	(4,408,918	)	$	(263,204	)	$	(2,994,244	)	$	(1,007,558	)