Note (2) Discontinued Operation and Deconsolidation of Held Subsidiary

6 Months Ended

Jun. 30, 2016

Notes

Note (2) Discontinued Operation and Deconsolidation of Held Subsidiary

Note (2) Discontinued operation and Deconsolidation of held subsidiary

The Company follows the policy of segregating the assets and liabilities of subsidiaries or lines of business on its Balance Sheet from the assets liabilities of continuing subsidiaries or lines of businesses when it is decided to close or dispose of a subsidiary or line of business. The Company also, follows the policy of separately disclosing the assets and liabilities and the net operations of a subsidiary or line of business in its financial statements when it is decided to close or dispose of a subsidiary or line of business.

On August 28, 2015, the Company entered into a separation agreement with BreedIT Ltd., the Company's majority-owned subsidiary ("BreedIT Israel"), in which the company agreed that its Equity Interest shall be diluted from sixty-six and two-thirds (66 2/3%) percent to nineteen (19%) percent. Accordingly BreedIt Ltd. is no longer consolidated, a $6,780 gain was recorded on deconsolidation and the remaining 19% of investment written off during deconsolidation.

As a result of entering into the Separation Agreement, the operations of BreedIt Ltd. have been classified as Discontinued Operations on the Statement of Operations. The components of Discontinued Operations summarized on the Statement of Operations arising from the decision to separate from BreedIt Ltd. are as follows:

		For the six		For the six
		months ended		months ended
		June 30, 2016		June 30, 2015
Revenues	$	-	$	40,330
Expenses
Research and development		-		-
General and administrative		-		(465,853)
Total operating expenses		-		(465,853)
(Loss) from operations		-		(425,523)
Other income (expense)		-		8,820
Financial income (expense)		-		8,820
Net loss	$	-	$	(416,703)
Assets:
Cash		-		74,529
Other assets		-		57,530
Total assets held for sale		-		132,059
Liabilities:
Accounts payable		-		35,517
Total liabilities related to assets held for sale		-		35,517
The accompanying notes are an integral part of these financial statements.