13. GAIN ON SALE

As a result of the Company’s sale of certain assets pursuant to the Asset Purchase Agreement completed July 2, 2012 (see Note 1), the Company recorded a gain on sale for the year ended December 31, 2012 in the accompanying consolidated statement of operations as follows:

	Year Ended December 31, 2012
Gross Proceeds (including $1,000 received in February 2013)	$	15,000
Add:
Liabilities assumed by buyers – discontinued operations		6,642
Adjusted sales price		21,642

Less:
Expenses of sale		3
Carrying value of assets sold – continuing operations		1,596
Carrying value of assets sold – discontinued operations		2,329
		3,928
Gain on sale	$	17,714