Acquisition and Divestiture/Restatements (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of restatement of statements of operations reflecting deconsolidation of company acquired

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011

	Three months ended September 30,2011									Nine months ended September 30,2011
	As Previously									As Previously
	Reported			Net Change			As Restated			Reported			Net Change			As Restated
Revenues:
Income from foreign currency operations	$	-		$	-		$	-		$	616		$	-		$	616
Consulting and services		-			-			-			10,000			-			10,000
		-			-			-			10,616			-			10,616
Cost of revenues		-			-			-			-			-			-
		-			-			-			10,616			-			10,616
General and administrative expenses		179,925			454			180,379			702,380			360,454			1,062,834
Loss from operations		(179,925	)		(454	)		(180,379	)		(691,764	)		(360,454	)		(1,052,218	)

Other income (expenses):
Interest expense, net of interest income		(26,216	)		-			(26,216	)		(72,034	)		-			(72,034	)
Impairment expense to goodwill from Variable Interests		(24,800,000	)		24,800,000			-			(24,800,000	)		24,800,000			-
Income from equity interest in Variable Interests		-			-			-			394,309			(394,309	)		-
Total other income (expenses)		(24,826,216	)		24,800,000			(26,216	)		(24,477,725	)		24,405,691			(72,034	)

(Loss) income before income taxes		(25,006,141	)		24,799,546			(206,595	)		(25,169,489	)		24,045,237			(1,124,252	)

Income tax expense		-			-			-			-			-			-

Net (loss) income	$	(25,006,141	)	$	24,799,546		$	(206,595	)	$	(25,169,489	)	$	24,045,237		$	(1,124,252	)

Net (loss) income per share:
Basic and diluted	$	(0.60	)	$	0.59		$	(0.01	)	$	(0.61	)	$	0.58		$	(0.03	)

Weighted average number of common
shares outstanding:
Basic and diluted		41,428,796			(6,844,412	)		34,584,384			41,428,796			3,217,772			44,646,568

Schedule of restatement of statements of cash flow reflecting deconsolidation of company acquired


	As Previously
	Reported			Net Change			As Restated
Cash flows from operating activities:
Net loss	$	(25,169,491	)	$	24,045,239		$	(1,124,252	)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation of property and equipment		4,303			-			4,303
Amortization of intangible assets		39,682			(172	)		39,510
Amortization of debt discount		38,390			(1,515	)		36,875
Common shares issued to consultants for services		-			362,000			362,000
Income fron equity interest in Triple 8 Limited		(394,309	)		394,309			-
Impairment expense to goodwill from variable interest		24,800,000			(24,800,000	)		-
Change in accounting method for investment in variable interest -
reclassification of goodwill		3,531,487			(3,531,487	)		-
Foreign currency adjustment		1,533			(1,533	)		-
Changes in assets and liabilities:
Accrued interest on notes receivable		-			(32,138	)		(32,138	)
Accounts receivable and prepaid expenses		8,075			(14,839	)		(6,764	)
Other assets		(4,487,375	)		4,487,375			-
Secured note and debt discount		51,205			(51,205	)		-
Accounts payable and accrued expenses		(2,048,521	)		2,375,457			326,936
Other current liabilities		460,767			(460,767	)		-
Other liabilities		(75,000	)		75,000			-
Accrued interest on notes payable		98,818			(8,033	)		90,785

Net cash provided by (used in) operating activities		(3,140,436	)		2,837,691			(302,745	)

Cash flows from investing activities:
Investment in additional 5% of Triple 8 Limited		(1,800,000	)		1,800,000			-
Issuance of a short-term receivable		-			(150,000	)		(150,000	)

Net cash (used in) provided by investing activities		(1,800,000	)		3,600,000			(150,000	)

Cash flows from financing activities:
Issuance of common stock in private placement		28,345			-			28,345
Purchase of shares returned to treasury		(10,529	)		-			(10,529	)
Retirement of common shares to purchase Triple 8 Limited		(25,800,800	)		25,800,800			-
Issuance of Series A preferred shares to replace common shares		25,800,080			(25,800,080	)		-
Issuance of shares to reduce note		71,736			(71,736	)		-
Series A shares issued to fund acquisition of additional 5% of Triple 8 Limited		1,200,000			(1,200,000	)		-
Note payable issued to fund acquisition of additional 5% of Triple 8 Limited		600,000			(600,000	)		-

Net cash provided by (used in) financing activities		1,888,832			(1,871,016	)		17,816

Net increase (decrease) in cash and cash equivalents		(3,051,604	)		2,616,675			(434,929	)
Cash and cash equivalents, beginning of period		3,078,339			(2,618,190	)		460,149

Cash and cash equivalents, end of period	$	26,735		$	(1,515	)	$	25,220

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

NON-CASH INVESTING AND FINANCING ACTIVITIES:
Restricted common shares issued to pay certain expenses	$	-		$	71,736		$	71,736
Note issued to fund acquisition of additional 5% interest in
Triple 8 Limited	$	-		$	600,000		$	600,000
Issuance of Preferred Shares Series A - Triple 8 limited	$	25,800,080		$	(25,800,080	)	$	-
Equity interest from Triple 8 limited, YTD	$	(25,800,000	)	$	25,800,000		$	-
Impairment expense from variable interest	$	394,309		$	(394,309	)	$	-
Issuance of Series A preferred shares to acquire an
additional 5% in Triple 8 Limited	$	1,200,000		$	-		$	1,200,000
Conversion of debt to common shares	$	-		$	200,000		$	200,000
Cancellation of common shares issued to Forex NYC	$	-		$	200,000		$	200,000
Accrued interest on notes payable	$	137,276		$	137,276		$	-
Accrued interest on notes receivable	$	32,142		$	32,142		$	-