6. Discontinued Operations

6 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

6. Discontinued Operations

On April 2, 2013, we entered an Asset Purchase Agreement (“Purchase Agreement”) with Blackwatch International, Inc. (“Blackwatch”), a Virginia corporation, pursuant to which we primarily sold our government Dept. of Defense (DoD) contract vehicles for approximately $1.2 million. These assets essentially comprised our Government services segment operations.

The following table shows the results of operations of Lattice Government Services segment for the six months ended June 30, 2014 which are included in the net income (loss) from discontinued operations:

	Six Months Ended June 30,
	2014		2013
Revenue	$	–	$	603,616
Cost of revenue		–		300,033
Gross profit		–		303,583
		–		50.3%
Selling, general and administrative expenses		–		405,470
Amortization expense		–		80,448
Loss from operations		–		(182,335	)
Interest expense		–		(9,163	)
Gain on sale of discontinued operations		–		521,443
Income before taxes		–		329,945
Income tax (benefit)		–		(32,397	)
Net income from discontinued operations	$	–	$	362,342