4. Discontinued Operations

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Discontinued Operations

Effective December 31, 2014, the Company sold the www.bingo.com domain name to Unibet Group plc. for cash consideration of $2,000,000 and redemption of the 15,000,000 common shares of the Company, which were held by Unibet Group plc, at a price of $0.40 per share. The 15,000,000 common shares held by Unibet have been returned to the Company's treasury and were cancelled.

The Company recorded the following gain from the sale of domain name for the year ended December 31, 2014.

		Gain from sale of domain name
Sale of domain name	$	8,000,000
Domain name rights and intangible assets held for sale		(1,257,241)
Commission on sale		(65,000)
Gain from the sale of the domain name	$	6,677,759

In addition, the Company disposed its cash bingo business to Unibet Group plc. The company recognized the gain on the sale of the cash bingo business of $16,305 in the quarter ended March 31, 2015.

The effect of the discontinued operations were as follows:

		Nine Months ended September 30, 2015		Nine Months ended September 30, 2014		Three Months ended September 30, 2015		Three Months ended September 30, 2014
Cash flows from operating activities:
Discontinued operations	$	16,305	$	775,068	$	-	$	251,991