DISCONTINUED OPERATIONS

12 Months Ended

Jun. 30, 2012

Notes to Financial Statements

DISCONTINUED OPERATIONS

On September 26, 2011, the Company agreed to transfer all membership units owned in its two wholly-owned subsidiaries, MojoRepublik, LLC and LiveBrew.com, LLC, to a former officer of the Company who is also the Company’s former majority stockholder, in consideration for the cancellation of all outstanding promissory notes held by the former officer and the assumption of other liabilities related to the subsidiaries. The former officer agreed to cancel and/or assume a total of $364,721 which included accounts payable, accrued interest and notes payable. The former officer also received fixed assets which had no carrying value on the date of sale as well as the bank account of one subsidiary with cash of $364. The Company did not recognize a gain on the transaction and recognized the net book deficiency of the subsidiaries sold as an increase in the Company’s additional paid-in-capital of $364,357.

In accordance with ASC 205, “Presentation of Financial Statements”, the Company recorded the sale of the subsidiaries as a discontinuance of operations. As such, all results of operations related to the subsidiaries have been reclassified to loss from discontinued operations. Historical operations of the two subsidiaries have also been retroactively reclassified to loss from discontinued operations to be presented separately from results of operations from continuing operations. Comparative amounts of assets and liabilities of the subsidiaries have also been reclassified within the Company’s balance sheets as assets and liabilities of discontinued operations to be presented separately from assets and liabilities of continuing operations. Likewise, the statements of cash flows have been retroactively reclassified to separate cash flow activity into cash flows from continuing operations and cash flows from discontinued operations.

Assets and liabilities of discontinued operations consisted of the following as of June 30, 2012 and 2011:

	June 30,		June 30,
	2012		2011
Assets
Cash	$	—	$	1,864
Assets of discontinued operations - current	$	—	$	1,864
Liabilities
Accounts payable	$	—	$	273,899
Loan payable - related parties		—		68,691
Accrued interest payable - related parties		—		11,255
Note payable		—		10,000
Accrued interest payable		—		2,352
Liabilities of discontinued operations - current	$	—	$	366,197

Loss from discontinued operations consisted of the following for the years ended June 30, 2012 and 2011:

							From Inception
							on September 10,
	For the Years Ended						2007 Through
	June 30,						June 30,
	2012			2011			2012
Revenues from discontinued operations	$	—		$	—		$	8,523
OPERATING EXPENSES
Professional fees		1,738			16,466			57,733
General and administrative		422			4,184			109,852
Total operating expenses of discontinued operations		2,160			20,650			167,585
OTHER INCOME AND EXPENSES
Other income		—			—			104
Interest expense		(1,094	)		(4,721	)		(14,700	)
Total other income and expense from discontinued operations		(1,094	)		(4,721	)		(14,596	)
LOSS FROM DISCONTINUED OPERATIONS	$	(3,254	)	$	(25,371	)	$	(173,658	)