12. Discontinued Operations of Delta Mechanical	3 Months Ended
Mar. 31, 2012
Notes to Financial Statements
12. Discontinued Operations of Delta Mechanical	12. DISCONTINUED OPERATIONS OF DELTA MECHANICAL On January 21, 2011, the Company entered into an agreement for a purchase price of: (i) a $9,000,000 buyer note (secured by Delta Mechanical) (ii) future contingency payment(s), based on the registrant's results for the years ended December 31, 2011, 2012, 2013 and 2014, not to exceed $250,000 per year or $1,000,000 in aggregate, and (iii) a four year employment contract with the president and chief financial officer of Delta Mechanical. As discussed in Note 1, the Company had planned to raise the capital to repay the seller note through sales of securities in the public and private markets. Due to market conditions, the Company was unable to raise the capital by the due date and on September 23, 2011, Mr. Bookbinder exercised his right to revert 100 percent of the membership interest back to him that also simultaneously extinguished the seller note including accrued interest. As a result, the Company has chosen to exit the mechanical contracting business in Rhode Island and has reclassified the results of operations to discontinued operations during the third quarter, ended September 30, 2011. As the acquisition occurred in January, 2011 no prior periods were required to be restated. The Company has accounted for these in accordance with FASB 205-20-45-6, “Accounting for the Impairment or Disposal of Long-Lived Assets.” Accordingly, any operating results of these businesses, and the resulting loss on disposal, are presented in the Consolidated Statement of Operations as discontinued operations, net of income tax. Revenue included in the discontinued operations totaled approximately $12.2 million for the period from January 21, 2011 through March 31, 2011 and had pre-tax income of approximately $86,000.

12. Discontinued Operations of Delta Mechanical

3 Months Ended

Mar. 31, 2012

12. Discontinued Operations of Delta Mechanical

12. DISCONTINUED OPERATIONS OF DELTA MECHANICAL

On January 21, 2011, the Company entered into an agreement for a purchase price of:

(i) a $9,000,000 buyer note (secured by Delta Mechanical)

(ii) future contingency payment(s), based on the registrant's results for the years ended December 31, 2011, 2012, 2013 and 2014, not to exceed $250,000 per year or $1,000,000 in aggregate, and

(iii) a four year employment contract with the president and chief financial officer of Delta Mechanical.

As discussed in Note 1, the Company had planned to raise the capital to repay the seller note through sales of securities in the public and private markets. Due to market conditions, the Company was unable to raise the capital by the due date and on September 23, 2011, Mr. Bookbinder exercised his right to revert 100 percent of the membership interest back to him that also simultaneously extinguished the seller note including accrued interest.

As a result, the Company has chosen to exit the mechanical contracting business in Rhode Island and has reclassified the results of operations to discontinued operations during the third quarter, ended September 30, 2011. As the acquisition occurred in January, 2011 no prior periods were required to be restated. The Company has accounted for these in accordance with FASB 205-20-45-6, “Accounting for the Impairment or Disposal of Long-Lived Assets.” Accordingly, any operating results of these businesses, and the resulting loss on disposal, are presented in the Consolidated Statement of Operations as discontinued operations, net of income tax.

Revenue included in the discontinued operations totaled approximately $12.2 million for the period from January 21, 2011 through March 31, 2011 and had pre-tax income of approximately $86,000.

Iron Eagle Group, Inc. 10-Q/A