2. Acquisitions

During fiscal years 2012 and 2013, acquisitions of subscribers and tangible assets were completed to grow the Company's subscriber base. These acquisitions were accounted for using the purchase method. The Company immediately began integrating the acquired assets of each acquisition into the Company's existing operations and continues to operate these assets within a single business segment.The amortization period of the intangible assets acquired in each acquisition is four years, which is consistent with the Company's handling of capitalized subscriber acquisition costs in previous acquisitions.

On February 1, 2013, the Company completed an acquisition of the subscribers associated with the wireless ISP operations of PC Doctors DBA: Internet Doctors ("Internet Doctors") conducted in and around Dallas/Fort Worth, Texas for a total purchase consideration of $95,695, consisting of (i) $50,000 in cash payments made at closing and (ii) $45,695 in a note payable, net of a debt discount. On August 1, 2012, the Company completed an acquisition of the subscribers associated with the wireless ISP operations of Pyro-tech Inc. ("AEI Wireless") conducted in and around Dallas/Fort Worth, Texas for a total purchase price consideration of $63,006, consisting of (i) $26,000 in cash payments made at closing and (ii) $37,006 in a note payable, net of a debt discount.

On January 31, 2012, the Company completed an acquisition of the tangible assets and subscribers (the "Joplin Acquisition") associated with the wireless ISP operations of Aircado-HiBeam LLC's ("Aircado") conducted in and around Joplin, Missouri for a total purchase consideration of $104,000, paid in cash. There was a gain related to the Joplin Acquisition resulting from a bargain purchase. This occurred due to Aircado's divesture of the assets that was required to be completed within a very limited timeframe to a small class of potential buyers that resulted in a favorable price to the Company. This gain recognized on the bargain purchase is included in Other Income (Expense) in the accompanying statement of operations for the year ended June 30, 2012. The table below summarizes the estimated fair value of the assets acquired at the date of the Joplin acquisition as determined by management.

Total purchase consideration	$	104,000
Fair value assignment:
Property and equipment		236,000
Inventory		12,100
Acquired subscribers		267,300
Total fair value of assets acquired		515,400
Gain on bargain purchase	$	411,400