Sale of US players and related assets

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Sale of US players and related assets

Note 4. Sale of US players and related assets:

Effective October 12, 2006, the Company, in response to the United States Unlawful Internet Gambling Enforcement Act, sold its United States players and related assets for $1,200,050, payable by the arms-length purchaser at a variable rate over the subsequent months. There is no set period for repayment and it is interest free. The Company has fully provided for the outstanding amount due. The Company will recognize the profit from the sale of these assets as and when payment is received. During the quarter ended June 30, 2011, the Company collected $nil (June 30, 2010 - $nil) in payment for these assets.

During the year ended December 31, 2010, the Company was advised that the purchaser had ceased operations and is in the process of winding up the company. Therefore the Company has determined that $658,286 will never be recovered. 

	Amount
Balance remaining December 31, 2009	$	774,550
Payments received		(5,000	)
Amount deemed irrecoverable and removed from accounts receivable		(658,286	)
Balance remaining December 31, 2010	$	111,264
Payments received		—
Balance remaining June 30, 2011	$	111,264

The amount has been fully provided for as part of allowance for doubtful accounts.