Note 12- Discontinued Operations

12 Months Ended

Dec. 31, 2012

Note 12- Discontinued Operations

As of May 31, 2012, the Company entered into an Equity and Intellectual Property Rights Transfer Agreement (the “EIPRTA”) to dispose of all of the shares and related intellectual property of its subsidiary ANV Security Technology (China) Co., Ltd. (“ANV Tech”), by transferring the same to a company owned by its former owner and director, for five million RMB (approximately $800,000) payable in three installments; (i) 20% on Closing, and 40% on each of December 31, 2012 and 2013 and (B) the return to the Company of 9,529,411 shares from former owner of the Company’s common stock. At the same time, the Company sold 100% equity interest in ANV Tech’s four subsidiaries back to former owners of these subsidiaries by return to the Company of 8,000,000 common shares from former owners of four subsidiaries.

The operating results of discontinued operations are as follows:

	For the year ended December 31, 2012	For the year ended December 31, 2011
Revenues	6,409,306	26,839,133
Cost of sales	5,293,803	21,768,338
Gross Profit	1,115,503	5,070,795

Operating Expenses
Selling and Marketing	767,117	2,129,227
General and Administrative	882,340	5,498,185
Research and Development	382,893	1,289,525
Total Operating Expenses	2,032,350	8,916,937
Operating Loss	(916,847)	(3,846,142)

Other Income (Expenses)
Interest Income	59,755	2,608
Interest Expense	(30,249)	(5,273)
Loss on disposal of subsidiaries	(8,804,141)	(1,316,326)
Others, net	2,836,521	(187,852)
Total Other Income (Expense)	(5,938,114)	(1,506,843)

Loss Before Income Tax Expense	(6,854,961)	(5,352,985)
Income Tax Expense, Net of Income Tax Benefit	224,257	627,207
Net Income (Loss) from discontinued Operations	(6,630,704)	(4,725,778)

- 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

ANV SECURITY GROUP INC. 10-K/A