DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2011

During the quarter ended June 30, 2012, the Company discontinued its Addictionary and PlanetTagger product lines. Addictionary was a social word play engine. PlanetTagger was a location-enabled integrated social media platform. The Company has classified all amounts presented in these financial statements to reflect the impact of the discontinuance of operations. The Company realized a gain of $1,558 during the current quarter from discontinued operations due to the winding down of these discontinued operations. The assets (receivables) related to the discontinued operations have been written down to a net realizable value of $475 and the liabilities associated with the sale of these assets are recorded at $13,825 as of September 30, 2011.

	At September 30,			At December 31,
	2011			2010
Receivables associated with assets held for sale, net	$	30		$	2,200
Computer equipment		9,681			26,411
Software		8,393			8,393
Patents, trademarks, and domain names		7,183			7,083
Product development costs		194,321			194,423
Less: Accumulated depreciation and amortization		(219,133	)		(228,825	)
Total assets held for sale - Discontinued operations	$	475		$	9,685

Total liabilities associated with assets held for sale -
Discontinued operations	$	13,825		$	77,937

The following tables present the revenues and expenses related to the above projects for the three month and nine month periods ended September 30, 2011, and September 30, 2010. Prior period income statement amounts applicable to the above projects have been reclassified and included under income (loss) from discontinued operations.

	Three Months Ended,			Three Months Ended,
	September 30, 2011			September 30, 2010
REVENUE	$	15,750		$	44,250
OPERATING EXPENSES
General and administrative		15,528			110,493
Salaries and wages		177			184,710
Product development costs		287			26,053
Total Operating Expenses		15,992			321,256
OPERATING LOSS		(242	)		(277,006	)
OTHER INCOME (EXPENSES)
Gain on sale of equipment		1,800			-
Total Other Income (Expenses)		1,800			-
LOSS FROM DISCONTINUED OPERATIONS	$	1,558		$	(277,006	)

	Nine Months Ended,			Nine Months Ended,
	September 30, 2011			September 30, 2010
REVENUE	$	234,259		$	114,850
OPERATING EXPENSES
General and administrative		387,653			336,720
Salaries and wages		266,625			517,246
Product development costs		25,297			72,355
Total Operating Expenses		679,575			926,321
OPERATING LOSS		(445,316	)		(811,471	)
OTHER INCOME (EXPENSES)
Gain on sale of equipment		2,649			-
Total Other Income (Expenses)		2,649			-
LOSS FROM DISCONTINUED OPERATIONS	$	(442,667	)	$	(811,471	)

- 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).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 144

-Paragraph 43-48

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 45

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 360

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 360

-SubTopic 10

-Section 45

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 45

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 205

-SubTopic 20

-Section 45

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

+ Details

SpectrumDNA, Inc. 10-Q