Divestment of investments and discontinued activities final

6 Months Ended

Jun. 30, 2011

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3.      Divestment of investments and discontinued activities

On March 31, 2010 the Company sold its stock in Medicexchange and various non-core investments to an unrelated third party in return for consideration of £750 ($1,136).  This consideration was deferred and to be paid in installments through March 2011.  On August 30, 2010, at the request of the third party, and in discussion and negotiation with management, it was agreed that the remaining installments would be modified.  In accordance with this, as of December 31, 2010 £506 ($766) had been received.  The final installment of £244 ($370) was paid on March 29, 2011.

The investments disposed of and the related consideration is as follows:

Asset	Consideration
Medicexchange Limited	$	927
Medicexchange, Inc.		1
HipCricket, Inc.		205
Eurindia Limited		1
XShares Group, Inc. equity		1
XShares Group, Inc. convertible notes		1
Total	$	1,136

Eurindia Limited (“Eurindia”) and the XShares Group, Inc. (“XShares”) convertible notes and equity investment had been fully impaired so the consideration received represents the gain on sale recorded in the Condensed Consolidated Statement of Operations.  At March 31, 2010, HipCricket, Inc. (“HipCricket”) carrying value was $224, therefore a loss on disposal of $19 was recorded on March 31, 2010 (see note 6).

Before their disposal, Medicexchange Limited and Medicexchange Inc. were consolidated into the MGT condensed consolidated financial statements.  Consideration of $928 was allocated to Medicexchange and MGT recorded a gain on sale of $149, net of tax. This gain on sale has been recognized in discontinued operations. The operations of Medicexchange have been presented in discontinued operations up to the date of disposal, March 31, 2010.

Medicexchange’s operating results for the three and six months ending June 30, 2011 and 2010 are as follows.

	Three months ended  June 30,				Six months ended  June 30,
	2011		2010		2011		2010
Revenue	$	—	$	—	$	—	$	15
Operating expenses		—		—		—		(249	)
Net loss from operations		—		—		—		(234	)