13. DISCONTINUED OPERATIONS

12 Months Ended

Jun. 30, 2015

Discontinued Operations

DISCONTINUED OPERATIONS

On February 26, 2015, the Company entered into a Stock Redemption Agreement with two of its shareholders (the “Shareholders”) and its wholly-owned subsidiary Wireless Village, Inc. dba Janus Cam (“Janus Cam”), a Nevada corporation (the “Agreement”) whereby the Company will cancel 68,000,000 shares of the Company’s common stock held by the Shareholders in exchange for all of the outstanding shares of common stock of Wireless Village held by the Company and the forgiveness of certain “Inter-Company Debt” of $344,052 advanced to Janus Cam by the Company (the “Transaction”). On May 7, 2015, the Company completed the closing of the transaction.

Assets of the divested subsidiary consisted of the following as of May 7, 2015 and June 30, 2014:

	May 7, 2015			June 30, 2014
Cash and cash equivalents	$	130,052		$	4,723
Accounts receivable, net		66,015			159,047
Due from related party		167,443			12,085
Inventory, net		190,499			474,035
Pre-Paid inventory, advance to supplier		219,149			-
Payroll advance		1,935			2,285
Current assets of subsidiary	$	775,093		$	652,175
Security deposits		11,222			11,222
Equipment		2,483			2,483
Network/office equipment		34,589			33,488
Accumulated depreciation		(30,820	)		(23,515	)
Non-Current assets of subsidiary	$	17,473		$	23,678
Total Assets of subsidiary	$	792,567		$	675,853

Liabilities of the divested subsidiary consisted of the following:

	May 7, 2015		June 30, 2014
Accounts payable	$	285,512	$	596,009
Sales tax liability		3,914		1,181
CA income tax provision		-		24,727
Payroll taxes payable		529		55,453
Total Accrued Expenses		289,955		677,370
Customer advances		82,475		6,752
Notes payable-related parties		-		10,000
Notes payable		-		50,000
Debt payable to Concierge		344,052		(5,548	)
Total liabilities of subsidiary	$	716,482	$	738,574

Net income and gain from the sale of subsidiary

The common shares redeemed in the transaction were valued at the fair market price of $0.0089 on the date of closing resulting in $605,200 in consideration. The debt payable to Concierge amounting to $344,052 as of the closing date was forgiven. The disposal of subsidiary resulted in a gain on disposal of $109,600. The income from discontinued operations for the period July 1, 2014 through May 7, 2015 was $108,807 resulting in a total gain on the disposal of the subsidiary of $218,407.