Note 4. Discontinued Operations

3 Months Ended

Mar. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

NOTE 4 – DISCONTINUED OPERATIONS

In January 2012, the Company entered into an agreement with Litigation Dynamics, Inc. to have Litigation Dynamics, Inc. merge into VR Holdings, Inc. for a consideration of 17,500,000 of common shares of VR Holdings, Inc. plus additional shares of VR Holdings, Inc., up to 20,000,000 shares, based upon the revenue volume of Litigation Dynamics, Inc. over the next five years. On September 24, 2012, a second agreement was signed by VR Holdings, Inc. and Litigation Dynamics, Inc. where by it was agreed that Litigation Dynamics, Inc. would be spun off as a separate company and that the total number of shares issued to the shareholder of Litigation Dynamics, Inc. would be reduced to 10,250,000 net of 3,000,000 shares which would be used in exchange for $300,000 of notes payable by Litigation Dynamics, Inc., and 1,500,000 shares due CapNet Security Corporation under a separate agreement signed by VR Holdings, Inc. As part of the reevaluation of the acquisition of Litigation Dynamics, $63,660 of Notes Receivable, which were in default, were written off as bad expense for the year ended September 30, 2012. The details of the Notes Receivable written off are as follows:



Note Receivable From	Amount

IMM-03211	$31,000
IIM-072011	$950
Pine Springs-061011	$687
TGM-040111	$3,250
TGM-050611	$21,879
TGM-070811	$2,489
TGM-081511-2	$2,000
TGM-090711	$1,405

TOTAL	$63,660

In addition to the reduction in common shares that VR Holdings, Inc. will issue, VR Holdings, Inc. received $30,000 in cash which was paid $20,000 in September 2012 and $10,000 in October 2012. The exchange rate for the shareholders of VR Holdings, Inc. to receive when Litigation Dynamics is spun-off is one share of the new company, Litigation Dynamics, Inc. for every 100 shares of VR Holdings, Inc. owned at the time of the spin-off. The control group of VR Holdings, Inc. who own approximately 93.8 % of VR Holdings, Inc. common stock will receive 1 share of Litigation Dynamics, Inc. for every 200 shares they own of VR Holdings, Inc. at the time of the spin-off.

As a result of entering into the Separation Agreement, the operations of Litigation Dynamics, Inc. have been classified as Discontinued Operations on the Statement of Operations. The components of Discontinued Operations summarized on the Statement of Operations arising from the decision to spin off the operations of Litigation Dynamics, Inc. are as follows:



	For the six months Ended March 31,
	2013	2012
Revenue	$ 70,544	$ -

Expenses:
General and administrative	77,608	45,570
Loss from operations	(7,064)	(45,570)

Other Income (expenses):
Interest Expense	(2,500)	9,173

Net Income (loss)	$ (9,564)	$ (54,743)


Assets:
Cash	$ (277)	$ -

Accounts receivable	55,300	-


Due from related parties	-	52,899
Notes receivable	-	36,950
Property, Plant & Equipment	777	-

Total assets held for sale	$ 55,800	$ 9,849

Liabilities:
Accounts payable	$ 21,567	$ 45,516
Amounts due related parties	27,355	118,715
Notes payable	50,000	300,000
Total liabilities held for sale	$ 98,922	$ 464,231

- 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

VR Holdings, Inc. 10-Q