Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 12 Months Ended
Dec. 31, 2012
Discontinued Operations  
Note 17. Discontinued Operations

Pursuant to the Merger Agreement, on June 21, 2011, the Company ceased operations of the following entities: Youth Media (BVI) Limited, Youth Media (BVI) Limited, Youth Media (Hong Kong) Limited, Youth Media (Beijing) Limited and Rebel Crew Films, Inc.  These entities were dissolved during the year ended December 31, 2012.  Accordingly, the results of operations of these entities are reported as losses from discontinued operations in the consolidated statement of operations.

 

Results for discontinued operations for the year ended December 31, 2012 and the period from June 21, 2011 to December 31, 2011 are as follows:

 

    2012     2011  
             
China Youth Media, Inc.   $ (3,771 )   $ (10,114 )
Youth Media (Hong Kong)     -       (2,050 )
Youth Media (Beijing)     103,737       (13,285 )
Net gain (loss) from discontinued operations   $ 99,966     $ (25,449 )

 

Upon the dissolution of Youth Media (Beijing) a gain on forgiveness of liabilities of $104,024 was recorded

 

As of December 31, 2012, the Company owes Jay Rifkin a current director who is also a former officer of the Company, $250,000 for unpaid consulting fees accrued prior to the Merger. Liabilities of discontinued operations were comprised of the following at December 31, 2012 and 2011:

 

    2012     2011  
                 
Accounts payable and accrued expenses   $ 262,032     $ 379,521  
Related party note payable     169,984       169,984  
Convertible note payable     50,000       50,000  
Total liabilities   $ 482,016     $ 599,505