Discontinued Operations / Assets Held for Sale

12 Months Ended

Dec. 31, 2011

Discontinued Operations and Assets Held for Sale [Abstract]

Discontinued Operations / Assets Held for Sale

3. Discontinued Operations / Assets Held for Sale

On January 15, 2012, ViewCast completed the sale of certain assets from Ancept Corporation (the “Ancept Assets”) related to the development and licensing of the VMp software products that provide the management of the life cycle phases of digital media pursuant to the terms of the Asset Purchase Agreement dated January 13, 2012, by and between ViewCast, Ancept Corporation, Genus Technologies LLC and its subsidiary. ViewCast’s wholly-owned subsidiary, Ancept Corporation, was renamed ViewCast Solutions, Inc. and will no longer operates this business. The Ancept Assets are classified as held for sale at December 31, 2011, and the assets and liabilities are included in the respective current assets and liabilities sections of the Consolidated Balance Sheet. The following table provides a detail of the net assets held for sale:

	December  31, 2010		December  31, 2011
Assets:
Accounts receivable	$	56,479	$	67,086
Prepaid expenses		11,657		4,381
Goodwill		620,002		—
Property and equipment, net		18,577		17,415
Deposit				3,250
Intangible assets, net		38,419		—
Capitalized software development cost, net		631,624		442,775
Total assets		1,376,758		534,907
Liabilities related to assets held for sale		408,482		250,837
Net assets held for sale	$	968,276	$	284,070

Goodwill of $620,002 is solely related to Ancept was adjusted for impairment of $620,002 as described in Note 6 along with $95,840 impairment to intangible assets and capitalized software.

The net loss from discontinued operations related to the Ancept for years ended December 31, 2010 and 2011 are as follows:

	Years ended December 31,
	2010			2011
Net revenue	$	1,464,108		$	1,111,559
Cost of revenue		1,027,897			885,879
Gross profit		436,211			225,680
Operating expenses		1,174,025			1,140,096
Impairment of goodwill and other intangible assets		—			713,842
Net loss from net assets held for sale	$	(737,814	)	$	(1,628,258	)