18. DISCONTINUED OPERATIONS

12 Months Ended

Jun. 30, 2016

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:

	May 7, 2015
Cash and cash equivalents	$	130,052
Accounts receivable, net		66,015
Due from related party		167,443
Inventory, net		190,499
Pre-Paid inventory, advance to supplier		219,149
Payroll advance		1,935
Current assets of subsidiary	$	775,093
Security deposits		11,222
Equipment		2,483
Network/office equipment		34,589
Accumulated depreciation		(30,820
Non-Current assets of subsidiary	$	17,473
Total Assets of subsidiary	$	792,567

Liabilities of the divested subsidiary consisted of the following:

	May 7, 2015
Accounts payable	$	285,512
Sales tax liability		3,914
CA income tax provision		-
Payroll taxes payable		529
Total Accrued Expenses		289,955
Customer advances		82,475
Notes payable-related parties		-
Notes payable		-
Debt payable to Concierge		344,052
Total liabilities of subsidiary	$	716,482

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.