Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operation, Additional Disclosures [Abstract]

Discontinued Operations

Discontinued Operations

As our ISDN resale services no longer fit into our overall strategic plan, in September 2010, we entered into an agreement with an independent telecommunications service provider to transfer these services and the related customers, and the Company receives a 15% monthly recurring referral fee for those revenues for as long as the customers maintain service. Such amounts were de minimis for the six and three months ended June 30, 2012 and were $12,000 for the six and three months ended June 30, 2011. The transfer of the customers was completed in the third quarter of 2011, and the Company will have no continuing involvement with the ISDN product line.

The Company accordingly classified these ISDN related revenues and expenses as discontinued operations in accordance with ASC 205.20 “Discontinued Operations.” The accompanying condensed consolidated financial statements reflect the operating results and balance sheet items of the discontinued operations separately from continuing operations. Prior year financial statements have been restated in conformity with generally accepted accounting principles to present the operations of the ISDN resale services as a discontinued operation.

Revenues from the ISDN resale services, reported as discontinued operations, for the six and three months ended June 30, 2011 were $81,000 and $30,000, respectively. Net income from the ISDN resale services, reported as discontinued operations for the six and three months ended June 30, 2011 were $18,000 and $24,000, respectively. The assets and liabilities from the ISDN resale services, reported as net current liabilities of discontinued operations, as of June 30, 2011 were $25,000. No income tax provision was required to be recognized by the Company against income from the ISDN resale services over the related periods.