BLUE BRIDGE CAPITAL, INC.

CIK:0001429684|SEC Filings

Discontinued the Operations of Apextalk, Inc.

6 Months Ended

Jun. 30, 2011

Discontinued Operations Of Apextalk Inc. [Abstract]

Discontinued Operations Of Apextalk, Inc. [Text Block]

NOTE 5. DISCONTINUED THE OPERATIONS OF APEXTALK INC.

On November 19, 2010, API entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Inno Global Inc. (“Innoglo”), a California company, The Purchase Agreement was effective September 1, 2010 and provided for the transfer of cash equal to $2,753 and gross accounts receivable equal to $ 2,244 net of an allowance for doubtful accounts equal to $395 by API to Innoglo in exchange for the assumption of certain API liabilities by Innoglo. Specifically, Innoglo assumed deferred revenue from API equal to $4,602. The net assets transferred from API to Innoglo were equal to the net liabilities assumed by Innoglo from API. As such, no gain or loss is recognized on the transaction. Pursuant to the closing of the Purchase Agreement, BBC transferred API’s telecom customers to Innoglo and discontinued its telecom business operations.

The following table summarized the assets and liabilities of the discontinued operations, excluding intercompany balances eliminated in consolidated, at June 30, 2011 and December 31, 2010, respectively:


	6/30/2011 (Unaudited)		12/31/2010
Assets in discontinued operations
Current assets:
Cash and cash equivalents	$	1,469	$	1,718
Accounts receivable, net of allowance		-		-
Total current assets		1,469		1,718

Non-current assets:
Property, plant and equipment, net		15,674		19,521

Total assets in discontinued operations	$	17,143	$	21,239

Liabilities in discontinued operations
Accounts payable	$	10,419	$	10,419
Accrued expenses		40,419		40,419

Total liabilities in discontinued operations	$	50,838	$	50,838

Financial data for the discontinued operations of API for the three and six months ended June 30, 2011 and 2010 are as follows:


	Three Months Ended						Six Months Ended
	6/30/2011			6/30/2010			6/30/2011			6/30/2010

Revenue	$	-		$	5,668		$	-		$	9,398
Cost of revenue		-			(6,779	)		-			13,884
Gross (loss)		-			(1,111	)		-			(4,486	)
Net (loss)		(1,941	)		(8,226	)		(4,097	)		(23,612	)
Net (loss) attributable to the Company	$	(1,941	)	$	(8,226	)	$	(4,097	)	$	(23,612	)

Per share information attributable to the Company
Basic and diluted net (loss) per common shares	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.02	)
Average common shares outstanding - basic and diluted		3,911,951			1,653,617			3,747,356			1,306,277

Condensed Consolidated Statements of Cash Flows (USD $)	6 Months Ended
Condensed Consolidated Statements of Cash Flows (USD $)	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities
Net Income (Loss)	$ 12,503,719	$ 269,558
Less: (loss) from discontinued operations, net of tax	(4,097)	(23,612)
Net income from continuing operations	12,507,816	293,170
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities:
Gain on bargain purchase of Yi An	0	(306,005)
Depreciation and amortization	73,261	7,477
In kind contribution of services	0	18,300
Change in operating assets and liabilities net of effects from purchase of subsidiary Yi An:
(Increase) in accounts receivable from related parties	(267,729)	0
Decrease in accounts receivable from third parties	72,303	0
(Increase) in other receivables	(321,156)	(41,172)
(Increase) in prepaid expenses	(56,361)	0
(Increase) in other assets	0	(60,000)
Increase (Decrease) in accounts payable	37,289	33,609
Increase (Decrease) in accrued expenses	(100,975)	54,830
Increase in advanced from customers	885,013	0
Increase (Decrease) in income tax payable	(868,692)	50,087
Increase in other taxes payable	267,187	9,769
Net cash provided by operating activities from continuing operations	12,227,956	60,065
Net cash (used in) operating activities from discontinued operations	(250)	(25,411)
Net cash provided by operating activities	12,227,706	34,654
Cash flows from investing activities
Payment for purchase of interest in Yi An, net of cash acquired	(1,261,500)	(3,782,192)
Purchase of equipment	(360,315)	(94,508)
(Increase) in deposits paid for acquiring property and equipment	(305,913)	0
Decrease in notes receivable from a related company	1,866,071	4,687,635
(Increase) in short term advance to a related company	(3,823,916)	0
(Increase) in note receivable	0	(4,797,576)
(Increase) in entrusted bank loans receivable from a related company	(1,835,480)	0
Net cash (used in) investing activities from continuing operations	(5,721,053)	(3,986,641)
Net cash (used in) investing activities from discontinued operations	0	0
Net cash (used in) investing activities	(5,721,053)	(3,986,641)
Cash flows from financing activities
Proceeds from issuance of common stock	1,300,000	4,250,000
Payments to note payable	0	(22,264)
Proceeds from stockholder loan	0	18,578
Net cash provided by financing activities from continuing operations	1,300,000	4,246,314
Net cash provided by financing activities from discontinued operations	0	100
Net cash provided by financing activities	1,300,000	4,246,414
Effect of exchange rates on cash	165,114	862
Net increase in cash	7,971,767	295,289
Cash and cash equivalents from continuing operations at beginning of period	3,870,882	0
Cash and cash equivalents from discontinued operations at beginning of period	1,718	21,710
Cash and cash equivalents at end of period	11,844,366	316,999
Less cash and cash equivalents from discontinued operations at end of period	1,469	14,169
Cash and cash equivalents from continuing operations at end of period	11,842,898	302,830
Cash paid during the period for:
Income taxes	$ 4,754,176	$ 10,470

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2011	Dec. 31, 2010
Current Assets
Cash and cash equivalents	$ 11,844,366	$ 3,870,882
Accounts receivable from a related company	991,101	706,361
Accounts receivable from third parties	633,558	693,021
Other receivables, net	377,926	52,050
Prepaid expenses	58,455	1,442
Deposits paid for acquiring property and equipment	309,430	0
Note receivable from a related company	0	1,851,009
Entrusted bank loans receivable - current portion	5,105,592	5,006,827
Entrusted bank loans receivable from a related party - current portion	15,780,925	13,654,984
Short-term advance to a related company	3,867,873	0
Current assets of discontinued operations	1,469	1,718
Total Current Assets	36,339,074	25,838,294
Property and equipment, net	704,473	406,301
Patent, net	8,969	8,969
Entrusted bank loans receivable, net of current portion	2,630,153	0
Noncurrent assets of discontinued operations	15,674	19,521
Total Assets	39,698,343	26,273,085
Current Liabilities
Accounts payable	13,561	36,793
Accrued expenses from other payables	96,660	135,395
Advance from customers	2,011,140	1,094,365
Short term note payable	2,577,551	2,527,689
Income tax payable	1,418,837	2,253,071
Other taxes payable	270,258	0
Current liabilities of discontinued operations	50,838	50,838
Total Current Liabilities	6,438,845	6,098,151
Total Liabilities	6,438,845	6,098,151
Commitments and Contingencies	0	0
Stockholders' Equity
Common stock, authorized 20,000,000 shares, par value $0.001, 3,911,951 shares and 3,370,284 shares issued and outstanding on June 30, 2011 and December 31, 2010, respectively	3,912	3,370
Additional paid-in-capital	11,800,807	8,467,246
Accumulated earnings	14,954,764	4,484,588
Accumulated other comprehensive income	911,715	356,162
Total Stockholders' Equity	27,671,198	13,311,366
Noncontrolling interests	5,588,300	6,863,568
Total Equity	33,259,498	20,174,934
Total Liabilities and Equity	$ 39,698,343	$ 26,273,085