| Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] |
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9.
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Discontinued Operations
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On June 3, 2011, the Company sold the inventory and assets related to its water treatment business to Mr. Robertson and Mr. Weissengruber for the aggregate amount of $115,823. The Company recognized a gain on disposal of the water business related assets of $5,820.
The results of discontinued operations are summarized as follows:
| |
|
Accumulated
from January 21,
2005 (Date of
Inception)
to September
30, 2011
|
|
|
Three Months
Ended
September 30,
2011
|
|
|
Three Months
Ended
September 30,
2010
|
|
|
Nine Months
Ended
September 30,
2011
|
|
|
Nine Months
Ended
September 30,
2010
|
|
| |
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Revenue
|
|
|
477,307 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
220 |
|
|
Cost of Sales
|
|
|
214,999 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
133 |
|
|
Gross Profit
|
|
|
262,308 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
87 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Amortization of intangible assets
|
|
|
689,732 |
|
|
|
– |
|
|
|
86,925 |
|
|
|
22,676 |
|
|
|
257,941 |
|
|
Consulting
|
|
|
292,000 |
|
|
|
– |
|
|
|
9,000 |
|
|
|
9,000 |
|
|
|
27,000 |
|
|
Marketing and sales
|
|
|
730,901 |
|
|
|
3,000 |
|
|
|
49,517 |
|
|
|
42,850 |
|
|
|
156,357 |
|
|
Bad debts expense (recovery)
|
|
|
333,328 |
|
|
|
– |
|
|
|
(12,350 |
) |
|
|
(7,200 |
) |
|
|
(21,050 |
) |
|
Commission Expense
|
|
|
5,900 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
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Total Expenses
|
|
|
2,051,861 |
|
|
|
3,000 |
|
|
|
133,092 |
|
|
|
67,326 |
|
|
|
420,248 |
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|
Net Loss from Discontinued Operations
|
|
|
(1,789,553 |
) |
|
|
(3,000 |
) |
|
|
(133,092 |
) |
|
|
(67,326 |
) |
|
|
(420,161 |
) |
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|
The gain on disposal is summarized as follows:
|
| |
|
Amount
$
|
|
| |
|
|
|
|
Consideration Received:
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|
|
|
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Proceeds from sale of water business assets to related parties
|
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|
115,823 |
|
| |
|
|
|
|
|
Net Liabilities:
|
|
|
|
|
|
Cash
|
|
|
(373 |
) |
|
Other receivables
|
|
|
(3,942 |
) |
|
Inventories
|
|
|
(115,823 |
) |
|
Total liabilities
|
|
|
10,135 |
|
| |
|
|
110,003 |
|
|
Gain on Disposal of Discontinued Operations
|
|
|
5,820 |
|
|
|
Cash flows of the discontinued operations are summarized as follows:
|
| |
|
Nine Months
Ended
September 30,
2011
$
|
|
|
Nine Months
Ended
September 30,
2010
$
|
|
| |
|
|
|
|
|
|
|
Operating activities
|
|
|
(44,650 |
) |
|
|
(162,220 |
) |
|
Investing activities
|
|
|
– |
|
|
|
– |
|
|
Financing activities
|
|
|
– |
|
|
|
– |
|
|
Net Decrease in Cash
|
|
|
(44,650 |
) |
|
|
(162,220 |
) |
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