14. DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2011

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

14) DISCONTINUED OPERATIONS

As described in Note 1, the board of directors determined in November 2010 that it would be in the best interests of the stockholders to sell XIOM Corp. On March 25, 2011, Xiom filed a petition in the United States Bankruptcy Court (District of Delaware) under Chapter 7 of the United States Bankruptcy Code requesting liquidation of its assets and liabilities and effectively ceased all operations. Accordingly, this operation has been presented as a discontinued operation in the accompanying consolidated financial statements for the periods presented.

For the nine months ended September 30, 2011 and 2010, loss from discontinued operations consisted of:

	2011			2010

Revenues		16,897			436,337

Cost of revenues		4,989		$	281,070

Gross profit		11,908			155,267
Selling, general and administrative expenses		43,274			559,567

Operating income		(31,366	)		(404,300	)

Interest expense		(123,868	)		(396,684	)

Loss before income tax provision		(155,234	)		(800,984	)
Income tax provision

Loss from discontinued operation		(155,234	)	$	(800,984	)

Due to Xiom’s March 25, 2011 bankruptcy filing, the Company has ceased accrual of interest expense and other contractual obligations commencing April 1, 2011.

The assets and liabilities of XIOM at September 30, 2011 and December 31, 2010 consisted of:

	(a) 2011			2010
Assets
Cash and cash equivalents	$	132		$	2,141
Accounts receivable, net		-			-
Inventory		-			-
Prepaid expenses and other current assets		2,000			2,000
Total current assets		2,132			4,141
Property and equipment, net		-			-
Other assets, net		36,446	(b)		36,446
Total assets	$	38,578		$	40,587

Liabilities
Current portion of debt	$	879,311	(c)		1,699,311
Accounts payable		607,160			585,307
Accrued expenses		408,648			408,648
Accrued Interest		694,525			891,030
Total liabilities	$	2,589,644		$	3,584,296

Net Assets (Liabilities)	$	(2,551,066	)	$	(3,543,709	)

(a) Due to Xiom’s March 25, 2011 bankruptcy filing, the Company has ceased accrual of interest expense and other contractual obligations commencing April 1, 2011. Any gain from the discharge of indebtedness will be recognized upon order of the United States Bankruptcy Court.

(b) Includes a $158,500 delinquent 5% note receivable due April 10, 2010 from and investment in Structural Enhancement Technologies Corp. (451,192 shares at September 30, 2011 and December 31, 2010) at estimated net recoverable value of $25,000 at September 30, 2011 and December 31, 2010.

(c) Excludes $1,589,994 and $433,116 payable to EIHC at September 30, 2011 and 2010, respectively, eliminated in consolidation.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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+ Details

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