DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2013

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

8. DISCONTINUED OPERATIONS

In connection with its on-going evaluation of each of its business units, the management of the Company recommended to the Board of Directors of the Company that based upon the substantial operational losses and declining revenues being incurred by the Company's international operations, such operations should be discontinued. Accordingly, on August 16, 2012, the Company's Board of Directors determined to discontinue the operations of its UK Subsidiary, 4Kids International, effective September 30, 2012.  Pursuant to the Asset Purchase Agreement and the corresponding assets sold and due to their continued lack of profitability, effective June 30, 2012, the Company terminated the operations of 4Kids Ad Sales, 4Kids Productions, 4Kids Music and 4Kids Home Video. Additionally, effective September 30, 2010, the Company terminated the operations of TC Digital and TC Websites. The results of operations for the international, advertising media and broadcast segment, television and film production/distribution segment and the trading card and game distribution segment are reported as a discontinued operation and the accompanying consolidated financial statements have been reclassified for all prior periods to report the assets, liabilities and operating results of this business. (See Note 1).

The following are the summarized results of discontinued operations for the three months ended March 31, 2013 and 2012:

	Three Months Ended March 31,
	2013		2012
Total net revenues	$	—	$	821
Total income (expenses)		279		(4,318	)
Income (loss) from discontinued operations	$	279	$	(3,497	)

Income from discontinued operations for the three months ended March 31, 2013 includes a gain of $344 resulting from the reclassification of accumulated translation adjustments from accumulated other comprehensive income.

The major classes of assets and liabilities of the discontinued operations on the balance sheet are as follows:

	March 31, 2013		December 31, 2012
ASSETS
Accounts receivable – net	$	37	$	230
Prepaid and other current assets		114		37
Current assets of discontinued operations	$	151	$	267
Property and equipment - net	$	1	$	1
Non-current assets of discontinued operations	$	1	$	1
LIABILITIES
Due to licensors	$	—	$	—
Accounts payable and accrued expenses		1,644		1,859
Current liabilities of discontinued operations	$	1,644	$	1,859