Sale of subsidiaries

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Sale of subsidiaries

Note 3. Sale of subsidiaries

Effective April 30, 2010, the Company sold Bingo.com Services Limited and Bingo.com Operations Limited in an arms length transaction for $250,000. Due to the migrating onto the Unibet's Partner Program and the Company's transition from providing active gaming operations to that of a marketing-focused entity, these subsidiaries and the assets contained therein no longer served a useful purpose to the Company.

The net assets of Bingo.com Services Limited and Bingo.com Operations Limited as at April 30, 2010 were as follows:

	April 30, 2010
Assets
Current assets:
Cash	$	13,956
Accounts receivable less allowance for doubtful accounts		22,204
Prepaid expenses		37,860
Total Current Assets		74,020
Equipment, net		94,376
Other assets		104,222
Total Assets	$	272,618
Liabilities
Current liabilities:
Accounts payable	$	37,701
Accrued liabilities		45,595
Provision for progressive jackpots		117,154
Total Current Liabilities	$	200,450
Net Assets	$	72,168
Proceeds on the sale of subsidiaries	$	250,000
Less net assets		(72,168	)
Profit on the sale of subsidiaries	$	177,832