12. Discontinued Operations

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

12. Discontinued Operations

Discontinued Operations

Discontinued operations are accounted for in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 360-10-35 Property, Plant, and Equipment. In accordance with FASB ASC Section 360-10-35, the net assets of discontinued operations are recorded on our consolidated balance sheets at estimated fair value. The results of operations of discontinued operations are segregated from continuing operations and reported separately as discontinued operations in our consolidated statements of loss and comprehensive loss. See Note 4 “Discontinued Operations” for further discussion.

International Packaging and Logistics Group, Inc. (“IPL Group Inc.”) (Seller), entered into an agreement with its majority owned subsidiary, EZ LINK Corporation (“EZ LINK”) (Buyer) which is a logistics company headquartered in Taiwan. EZ Link was established in July 2003 under the Company Law of Republic of China. Under this agreement EZ LINK is acquiring back IPL Group Inc.’s share position in EZ Link in exchange for their share position in IPL Group Inc. This transaction is effective as of February 28, 2015.

The terms are as follows:

IPL Group Inc. will assign its position in EZ LINK or 688,500 shares in the aggregate, to EZ LINK, such that, following such transaction, EZ LINK will no longer be a subsidiary of IPL Group Inc.

EZ LINK will assign the following:

(a) The 457,143 shares of common stock held by EZ LINK shareholders.

(b) The Series B Convertible preferred shares held by EZ LINK shareholders.

Results of Discontinued Operations

Summary results of operations for our discontinued operations for the years ended December 31, 2014 and, 2013, were as follows (dollars in thousands):

	December 31		December 31
Discontinued operations:	2014		2013
Revenue	$	7,549,512	$	7,007,784
Gain (Loss) from operations, including portion attributable to non-controlling interest of discontinued Logistics component	$	18,855	$	16,652
Income tax expense	$	10,217	$	12,150
Income from discontinued operations	$	8,638	$	4,502

Assets and Liabilities of Discontinued Operations

Assets and liabilities of discontinued operations on our consolidated balance sheets as of December 31, 2014 and 2013 include the following (dollars in thousands): 

	December 31		December 31
	2014		2013
Assets Discontinued subsidiary
Cash and cash equivalents	$	460,545	$	342,760
Notes receivable		62,209		129,362
Accounts receivable		489,286		516,350
Contract in place		1,295,726		1,295,726
Other assets		24,392		54,346
Property, Plant and Equipment, net		42,631		7,050
Assets Held for Sale - Discontinued Operations	$	2,374,789	$	2,345,594

	December 31		December 31
	2014		2013
Liabilities Discontinued subsidiary
Notes payable	$	8,287	$	–
Accounts payable		566,838		502,879
Other current liabilities		6,846		21,010
Liabilities - discontinued Operations	$	581,971	$	523,889