The Company and Principal Business Activities

6 Months Ended

Jun. 30, 2011

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Principal Business Activities

The Company and Principal Business Activities

A. Organization and Structure

Northport Network Systems, Inc. (the "Company") was originally incorporated under the laws of the State of Colorado on July 25, 2000 as Dotcom-netmgmt.com Inc. The Company changed its name to Northport Capital Inc. on April 28, 2004. On October 9, 2008, the Company re- incorporated in Washington State and changed its name to current name, Northport Network Systems, Inc. The Company was incorporated as an investment and general trading company.

On June 23, 2005, the Company entered into a definitive agreement with the shareholders of Dalian Beigang Information Industry Development Company Limited ("Dalian Beigang"), to which the Company issued 1,500,000 shares with $0,001 par value to Dalian Beigang shareholders in exchange of all issued and outstanding shares of Dalian Beigang. Since both companies were under common management, the exchange of shares had been accounted for as a reorganization of entities under common control.

The Company conducts its operations through its wholly owned subsidiary Dalian Beigang, which was incorporated in the People's Republic of China ("PRC") on June 20, 1997 with its principal place of business in Dalian, PRC.

B. Products and Operations

Dalian Beigang is principally engaged in color photo printing business. Dalian Beigang owns a trade name "Colorstar", which was registered with the Industrial and Commercial Administration of PRC, as well as a patent applied for the color photo printing technology. During the year 2010, the Company developed an online shopping website known as UrMart.net. However this website has not been launched. No revenue has been generated from sales through the site. For the year 2011, the Company developed a spilled oil clean up business on the specified seaboard for the Dalian government, the revenue for the six months ended in June 30, 2011 is all from the spilled oil clean up business.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References+ Details

Northport Network Systems, Inc. 10-Q/A