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Note 11: Creation of Limited Liability Company
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6 Months Ended |
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Jun. 30, 2011
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| Business Combination Disclosure [Text Block] |
Note
11: Creation of Limited Liability Company
On
September 20, 2010, the Company entered into a joint venture
agreement between the Company and Dr. Shulamit Ritblatt to
form Circle of Education, LLC (COE), a California limited
liability company, for the purpose of creation and
distribution of a curriculum to promote school readiness for
children ages 0-5 years. The Company obtained an
initial voting and economic interest of seventy-five percent
of the outstanding units of the newly formed company in
exchange for the contribution of all intellectual property
rights the Company had in the Circle of Education
program. Circle of Education, LLC was formed on
September 24, 2010.
The
Company has consolidated the results for the six month period
ended June 30, 2011 with the results of COE. COE
is currently developing products which have an estimated
introduction for sale in the third quarter of 2012, resulting
in no sales or cost of sales in the six month period ended
June 30,2011. COE had general and administrative
costs of $15,840, including legal costs related to the
creation of the agreements and registration of the entity in
the aggregate of $13,906, sales and marketing costs of $1,180
and product development costs of $244, for a total loss of
$17,683. As the Company has an economic interest
of 75% of the total subsidiary, the Company recognized 100
percent of the loss and recorded 25 percent of the loss, or
$4,421, as Noncontrolling Interest on the financial
statements for the six months ended June 30,
2011. There were no sales or expenses in the
fiscal year ended December 31, 2010. |