Sale of subsidiaries

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Sale of subsidiaries

4.    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 to Emporium Romanum Ltd. a private Maltese company. 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