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Note 11: Creation of Limited Liability Company
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9 Months Ended |
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Sep. 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 nine month
period ended September 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 nine
month period ended September 30, 2011. COE had
general and administrative costs of $18,040, including legal
costs related to the creation of the agreements and
registration of the entity in the aggregate of $14,761, sales
and marketing costs of $1,181 and product development costs
of $1,430 for a total loss of $20,651. As the
Company has an economic interest of 75 percent of the total
subsidiary, the Company recognized 100 percent of the loss
and recorded 25 percent of the loss, or $5,163, as
Noncontrolling Interest on the financial statements for the
nine months ended September 30, 2011. There were
no sales or expenses in the fiscal year ended December 31,
2010.
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