Subsequent events

9 Months Ended

Sep. 30, 2013

Note 16: Subsequent events

On November 13, 2013, the Company issued an 8-K announcing that the Company entered into an Agreement and Plan of Reorganization (the “Reorganization Agreement”) to acquire 100% of the common stock, preferred stock and options of Avcom, Inc (“Avcom”). Avcom is a game development studio producing free to play mobile and social casino-style games. Avcom’s assets include physical and intellectual property associated with Mobileveg.as and Freeawesome.com, as well as a game under development titled “SlotChamp”.

In consideration, the preferred stockholders of Avcom will receive $550 in value of the Company’s common stock and, the common stockholders and the option holders of Avcom will receive $1,000 in value of the Company’s common stock, In each case, the amount of shares of the Company’s common stock is based on the volume weighted average closing price for the 20 trading days prior to the signing of the Reorganization Agreement.

One half of the issuance to the common stockholders and the option holders will be placed in escrow and released upon the later of (i) the commercial release of an agreed upon game, or (ii) six months after closing. In addition, the common stockholders may be awarded contingent consideration of $1,000 through the issuance of up to 333,000 shares of common stock in the event the game reaches $3.0 million in gross revenues within 18 months of the signing of the Reorganization Agreement.

The Company is currently evaluating the accounting treatment of the Reorganization Agreement. The Company believes the acquisition constitutes a “Significant Acquisition” for accounting purposes.