DISCONTINUED OPERATIONS - Note 9

3 Months Ended

Jun. 30, 2014

Discontinued Operations - Note 9

DISCONTINUED OPERATIONS - Note 9

9. DISCONTINUED OPERATIONS

On September 30, 2013, the Company completed the sale of its dedicated server hosting business to IRC Company, Inc. ("IRC") and, as a result, no longer provides dedicated server hosting services. In the transaction, IRC purchased 100% of the stock of Central Host, Inc., which had been wholly owned by the Company and all of the assets specific to the dedicated server hosting business.

The Company sold its dedicated server hosting business for total consideration of $3.0 million in cash, which was received on October 1, 2013.

The dedicated server hosting business has been reported as discontinued operations. The results of operations position of these discontinued operations is as follows:

Results of operations:

		Three Months Ended
		June 30,
		2014		2013
Revenue	$	-	$	753
Operating expense		-		502
Income before income taxes		-		251
Provision for income taxes		-		104
Income from discontinued operations		-		147