LFTD Partners (LIFD) 10-Q14 Aug 142014 Q2 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2014	Aug. 14, 2014
Document and Entity Information:	'	'
Entity Registrant Name	'ACQUIRED SALES CORP	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001391135	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	2,269,648
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current Assets	'	'
Cash and cash equivalents	$1,280,978	$427,294
Due from sale of subsidiary	'	1,000,000
Total Assets	1,280,978	1,427,294
Current Liabilities	'	'
Trade accounts payable	25,886	20,886
Obligation under stock repurchase	'	20,000
Total Liabilities	25,886	40,886
Shareholders' Equity	'	'
Preferred stock, $0.001 par value; 10,000,000 shares authorized; none outstanding	'	'
Common stock, $0.001 par value; 100,000,000 shares authorized; 2,269,648 shares outstanding	2,270	2,270
Additional paid-in capital	8,410,295	8,410,295
Accumulated deficit	-7,157,473	-7,026,157
Total Shareholders' Equity	1,255,092	1,386,408
Total Liabilities and Shareholders' Equity	$1,280,978	$1,427,294

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position	'	'
Common Stock, par or stated value	$0.00	$0.00
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	2,269,648	2,269,648
Common Stock, shares outstanding	2,269,648	2,269,648
Preferred Stock, par or stated value	$0.00	$0.00
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	'	'
Preferred Stock, shares outstanding	'	'

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement	'	'	'	'
Selling, General and Administrative Expense	($72,233)	($63,479)	($147,579)	($123,106)
Other Income	8,321	'	16,263	'
Loss from Extinguishment of Debt	'	'	0	-79,463
Interest Expense	'	'	'	-4,125
Loss from Continuing Operations	-63,912	-63,479	-131,316	-206,694
Gain on Disposal of Discontinued Operations	'	994,678	'	4,726,068
Income from Discontinued Operations	'	115,180	'	268,980
Net Income (Loss)	($63,912)	$1,046,379	($131,316)	$4,788,354
Basic and Diluted Earnings (Loss) per Share	'	'	'	'
Continuing Operations	($0.03)	($0.02)	($0.06)	($0.07)
Discontinued Operations	$0	$0.37	$0	$1.69
Net Income ( Loss)	($0.03)	$0.35	($0.06)	$1.62

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (USD $)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Equity Balance, beginning of period, Value at Dec. 31, 2012	$2,878	$8,187,846	($11,500,063)	($3,309,339)
Equity Balance, beginning of period, Shares at Dec. 31, 2012	2,877,896	'	'	'
Stock issued in debt extinguishment, Value	83	271,757	'	271,840
Stock issued in debt extinguishment, Shares	82,548	'	'	'
Net Income (Loss)	'	'	4,788,354	4,788,354
Equity Balance, end of period, Value at Jun. 30, 2013	2,961	8,459,603	-6,711,709	1,750,855
Equity Balance, end of period, Shares at Jun. 30, 2013	2,960,444	'	'	'
Equity Balance, beginning of period, Value at Dec. 31, 2013	2,270	8,410,295	-7,026,157	1,386,408
Equity Balance, beginning of period, Shares at Dec. 31, 2013	2,269,648	'	'	'
Net Income (Loss)	'	'	-131,316	-131,316
Equity Balance, end of period, Value at Jun. 30, 2014	$2,270	$8,410,295	($7,157,473)	$1,255,092
Equity Balance, end of period, Shares at Jun. 30, 2014	2,269,648	'	'	'

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities	'	'
Net income (loss)	($131,316)	$4,788,354
Adjustments to reconcile income (loss) to net cash used in operating activities:	'	'
Income from discontinued operations	0	-4,995,048
Loss from extinguishment of debt	0	79,463
Changes in operating assets and liabilities:	'	'
Accounts payable	5,000	-117,155
Net cash used in operating activities of continuing operations	-126,316	-244,386
Net cash used in operating activities of discontinued operations	'	-1,143,554
Net cash used in operating activities	-126,316	-1,387,940
Cash Flows from Investing Activities	'	'
Net cash provided by investing activities and discontinued operations	1,000,000	3,670,135
Net cash provided by investing activities	1,000,000	3,670,135
Cash Flow from Financing Activities	'	'
Payments on notes payable	'	-650,070
Payments on notes payable - related parties	'	-1,601,776
Payment of obligation under stock repurchase	-20,000	0
Net cash used in financing activities of continuing operations	-20,000	-2,251,846
Net Increase in Cash	853,684	30,349
Cash and Cash Equivalents at Beginning of Period	427,294	186,914
Cash and Cash Equivalents at End of Period	1,280,978	217,263
Supplemental Cash Flow Information	'	'
Cash paid for interest	'	3,683
Cash paid for income taxes	'	'
Supplemental Disclosure of Noncash Investing and Financing Activities	'	'
Stock issued in extinguishment of debt to related party	'	$271,842

Note_1_Basis_of_Presentation_a

Note 1 - Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Jun. 30, 2014
Notes	'
Note 1 - Basis of Presentation and Significant Accounting Policies	'
	NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

	Basis of Presentation – On February 13, 2012, Acquired Sales Corp. (“Acquired Sales” or the “Company”) purchased 100% of the equity interests of Defense & Security Technology Group, Inc. (“DSTG”). On September 30, 2013 Acquired Sales sold 100% of the capital stock of DSTG to Minh Le, the previous owner of DSTG prior to its acquisition. DSTG’s results of operations have been included in the Company's operations from February 14, 2012 through September 30, 2013 and have been reclassified as discontinued operations.

	On January 12, 2013, Acquired Sales entered into an agreement with Drumright Group, LLC (“Drumright”) that was closed on February 11, 2013, wherein Acquired Sales sold 100% of the capital stock of Cogility Software Corporation (“Cogility”) to Drumright. The historical results of Cogility’s results of operations have been reclassified as discontinued operations.

	Condensed Financial Statements – The accompanying financial statements are condensed and do not include all disclosures normally required by generally accepted accounting principles. These statements should be read in conjunction with the annual financial statements included in Form 10-K filed with the U.S. Securities and Exchange Commission on April 1, 2014. In particular, the nature of operations and significant accounting principles were presented in Note 1 to the annual financial statements. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements and consist of only normal recurring adjustments, except as disclosed herein. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2014.

	Principles of Consolidation – The accompanying consolidated financial statements include the accounts and operations of Acquired Sales for all periods presented, the accounts and discontinued operations of Cogility Software Corporation through February 11, 2013 and the accounts and discontinued operations of Defense & Security Technology Group, Inc. from February 14, 2012 through September 30, 2013. Intercompany accounts and transactions have been eliminated on consolidation.

	Basic and Diluted Earnings (Loss) Per Common Share – Basic earnings (loss) per common share is determined by dividing earnings (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per common share is calculated by dividing earnings (loss) by the weighted-average number of common shares and dilutive common share equivalents outstanding during the period. When dilutive, the incremental potential common shares issuable upon exercise of stock options and warrants are determined by the treasury stock method. The following table summarizes the calculations of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2014 and 2013.


		For the Three Months		For the Six Months
		Ended		Ended
		June 30,		June 30,
		2014	2013	2014	2013
	Loss from Continuing Operations	($63,912)	($63,479)	($131,316)	($206,694)
	Income from Discontinued Operations	-	1,109,858	-	4,995,048
	Net Income (Loss)	($63,912)	$1,046,379	($131,316)	$4,788,354
	Weighted -Average Shares Outstanding	2,269,648	2,960,444	2,269,648	2,946,686
	Basic and Diluted Earnings (Loss) per Share
	Continuing Operations	($0.03)	($0.02)	($0.06)	-0.07
	Discontinued Operations	-	0.37	-	1.69
	Basic and Diluted Earnings (Loss) per Share	($0.03)	$0.35	($0.06)	$1.62

	There were 2,148,774 employee stock options and 938,000 warrants outstanding during the three and six months ended June 30, 2014 that were excluded from the computation of diluted earnings (loss) per share because their effects would have been anti-dilutive. There were 2,173,774 employee stock options and 938,000 warrants outstanding during the three and six months ended June 30, 2013 that were excluded from the computation of diluted earnings (loss) per share because their effects would have been anti-dilutive.

	Recent Accounting Pronouncements - In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date will be the first quarter of fiscal year 2016 using one of two retrospective application methods. The Company has not determined the potential effects on the financial statements.

	In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-12, Compensation-Stock Compensation (Topic 718)-Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force). ASU No. 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period shall be treated as a performance condition. The effective date will be the first quarter of fiscal year 2016. The Company has not determined the potential effects on the financial statements.

Note_2_Risks_and_Uncertainties

Note 2 - Risks and Uncertainties	6 Months Ended
Note 2 - Risks and Uncertainties	Jun. 30, 2014
Notes	'
Note 2 - Risks and Uncertainties	'
	NOTE 2 - RISKS AND UNCERTAINTIES

	The Company has a history of recurring losses, which has resulted in an accumulated deficit of $7,157,473 as of June 30, 2014. During the six months ended June 30, 2014, the Company recognized a loss of $131,316 from continuing operations. The Company used $126,316 of cash in its operating activities from continuing operations. The sale of Cogility and DSTG eliminated the Company’s source of revenue. As a result, there can be no assurance that the Company will not need additional financing and that the Company will be profitable in the future. As a result, there is substantial doubt that the Company will be able to continue as a going concern. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Note_3_Shareholders_Equity

Note 3 - Shareholders' Equity	6 Months Ended
Note 3 - Shareholders' Equity	Jun. 30, 2014
Notes	'
Note 3 - Shareholders' Equity	'
	NOTE 3 – SHAREHOLDERS’ EQUITY

	On October 17, 2013 the Company entered into a settlement agreement with Matthew Ghourdjian and the Deborah Sue Ghourdjian Separate Property Trust, whereby Mr. Ghourdjian and the Trust sold to the Company 690,796 shares of common stock for $30,000 cash plus an obligation to pay an additional $20,000 in February 2014, or approximately $0.07 per share. Mr. Ghourdjian resigned from the Company as an employee, director and officer. Mr. Ghourdjian and the Trust, and the Company entered into mutual releases of all claims against one another.

	The Company had 2,148,774 stock options outstanding at June 30, 2014 at a weighted average exercise price of $2.35 a share, a weighted average remaining contractual term of 5.29 years and an aggregrate intrinsic value of $742,810.

	The Company had 938,000 warrants outstanding at June 30, 2014 at a weighted average exercise price of $2.32 a share, a weighted average remaining contractual term of 2.36 years and had an aggregrate intrinsic value of $213,000.

Note_4_Commitments_and_Conting

Note 4 - Commitments and Contingencies	6 Months Ended
Note 4 - Commitments and Contingencies	Jun. 30, 2014
Notes	'
Note 4 - Commitments and Contingencies	'
	NOTE 4 – COMMITMENTS AND CONTINGENCIES

	The Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business. The Company defends itself vigorously against any such claims. Although the outcome of these other matters is currently not determinable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flows.

Note_5_Sale_of_Subsidiaries_an

Note 5- Sale of Subsidiaries and Discontinued Operations	6 Months Ended
	Jun. 30, 2014
Notes	'
Note 5- Sale of Subsidiaries and Discontinued Operations	'
	NOTE 5– SALE OF SUBSIDIARIES AND DISCONTINUED OPERATIONS

	Cogility Software Corporation – On January 12, 2013, Acquired Sales entered into an agreement with Drumright Group, LLC (“Drumright”) that was closed on February 11, 2013, wherein Acquired Sales sold 100% of the capital stock of its subsidiary, Cogility Software Corporation (“Cogility”) to Drumright in exchange for $3,975,000 in cash and a $3,000,000 receivable. The $3,000,000 was originally receivable as follows: $1,500,000 on August 11, 2013, less an estimated $32,258 in connection with a certain military contract delay, and $1,500,000 on February 11, 2014. In addition, Acquired Sales was required to hold $300,000 in an escrow account for potential subsequent claims. Acquired Sales was responsible for all costs and expenses and retained all accounts receivable relating to work performed by Cogility on revenue contracts through January 31, 2013, with those costs, expenses and revenue transitioning to Drumright thereafter. Acquired Sales retained a contract to create “legal analytics” software. The carrying value of Cogility’s net liabilities, excluding accounts receivable, was $32,899.

	Under the terms of the agreement, Acquired Sales was required to transfer Cogility to Drumright without any liabilities. To accomplish this requirement, the $3,975,000 down payment was placed into an escrow account and to the extent necessary was used to pay Cogility’s liabilities, including liabilities that were secured by Cogility’s assets or its capital stock.

	The Company agreed to indemnify Drumright for losses caused by breach of the Company’s representations and warranties. In March 2013, Drumright notified the Company of the existence of a second amendment to a license agreement between Cogility and one of its customers that was effective April 2007. On July 16, 2013 the parties entered into a Compromise and Release agreement whereby the parties agreed to reduce the purchase price by $2,000,000 by reducing the $3,000,000 receivable to $1,000,000 due and paid on February 11, 2014. As a result of the Compromise and Release agreement, the Company recognized a gain on disposal of discontinued operations relating to the sale of Cogility of $5,007,899, of which $4,726,068 was recognized during the six months ended June 30, 2013. The historical results of Cogility’s operations have been reclassified to discontinued operations.

	Defense & Security Technology Group, Inc. – Acquired Sales purchased 100% of the equity interests of Defense & Security Technology Group, Inc. (“DSTG”) on February 13, 2012. The results of DSTG’s operations have been included in the consolidated financial statements from February 14, 2012 through September 30, 2013.

	On September 30, 2013 Acquired Sales sold 100% of the common stock of DSTG back to the previous shareholder for $1. The Company recognized a loss on sale of $104,946 during the year ended December 31, 2013, none of which was recognized during the six months ended June 30, 2013. The historical results of DSTG’s operations have been reclassified to discontinued operations.

	Revenue and operating results of Cogility and DSTG included in discontinued operations for the three and six months ended June 30, 2014 and 2013 were as follows:

		For the Three Months Ended		For the Six Months Ended
		June 30,		June 30,
		2014	2013	2014	2013

	Revenues	-	140,360	-	485,581

	Net Income from Discontinued Operations	-	115,180	-	268,980

Note_6_Subsequent_Events

Note 6- Subsequent Events	6 Months Ended
Note 6- Subsequent Events	Jun. 30, 2014
Notes	'
Note 6- Subsequent Events	'
	NOTE 6– SUBSEQUENT EVENTS

	The William Noyes Webster Foundation, Inc. (the "Foundation"), a non-profit Massachusetts corporation, has received a provisional license from the Commonwealth of Massachusetts to own and operate a medical marijuana cultivation facility and dispensary in Barnstable County, Massachusetts. Jane W. Heatley ("Heatley") is the founder and a member of the board of directors of the Foundation.

	On July 8, 2014, Acquired Sales Corp. ("AQSP") and Heatley agreed to use their respective best efforts, working exclusively together as a team, and not as a partnership or other entity, in order to consummate transactions, agreements, contracts and other arrangements pursuant to which AQSP will provide capital and expertise to the Foundation.

	On July 14, 2014, the Foundation signed and delivered to AQSP a Secured Promissory Note (the "Note") which is in the stated loan amount of $1,500,000. The Note provides that the $1,500,000 loan may be advanced in one or more installments as the Foundation and AQSP may mutually agree upon. The Foundation and AQSP mutually agreed that the first installment of this loan would be $602,500. Pursuant to instructions from the Foundation, on July 14, 2014, AQSP paid $2,500 owed by the Foundation to one of its consultants, and AQSP advanced $600,000 directly to the Foundation. The amount and timing of subsequent loan installments under the Note, which could total $897,500, have not yet been mutually agreed upon between the Foundation and AQSP.

	The principal balance outstanding under the Note bears interest at the rate of 12.5% per annum, compounded monthly. The first payment by the Foundation under the Note shall be made as soon after the Foundation commences operations of its medical marijuana cultivation facility and dispensary as the Foundation's cash flows shall reasonably permit, but in any event no later than one year after the Foundation commences operations. The princip al of the Note shall be payable in eight consecutive equal quarterly installments, commencing on the last day of the calendar quarter in which the Foundation commences operations. The Note is secured by, among other things, all of the Foundation’s accounts, receivables, inventory, contractual rights, intangibles, equipment, goods, investment properties as set out in a Security Agreement dated July 14, 2014.

	On July 14, 2014, AQSP borrowed $300,000 from the Roberti Jacobs Family Trust (the "Trust"). The Trust is an affiliate of Gerard M. Jacobs, AQSP's Chief Executive Officer. The loan was repaid in full on August 5, 2014.

Note_1_Basis_of_Presentation_a1

Note 1 - Basis of Presentation and Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2014
Policies	'
Basis of Presentation	'
	Basis of Presentation – On February 13, 2012, Acquired Sales Corp. (“Acquired Sales” or the “Company”) purchased 100% of the equity interests of Defense & Security Technology Group, Inc. (“DSTG”). On September 30, 2013 Acquired Sales sold 100% of the capital stock of DSTG to Minh Le, the previous owner of DSTG prior to its acquisition. DSTG’s results of operations have been included in the Company's operations from February 14, 2012 through September 30, 2013 and have been reclassified as discontinued operations.

	On January 12, 2013, Acquired Sales entered into an agreement with Drumright Group, LLC (“Drumright”) that was closed on February 11, 2013, wherein Acquired Sales sold 100% of the capital stock of Cogility Software Corporation (“Cogility”) to Drumright. The historical results of Cogility’s results of operations have been reclassified as discontinued operations.
Condensed Financial Statements	'
	Condensed Financial Statements – The accompanying financial statements are condensed and do not include all disclosures normally required by generally accepted accounting principles. These statements should be read in conjunction with the annual financial statements included in Form 10-K filed with the U.S. Securities and Exchange Commission on April 1, 2014. In particular, the nature of operations and significant accounting principles were presented in Note 1 to the annual financial statements. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying unaudited condensed consolidated financial statements and consist of only normal recurring adjustments, except as disclosed herein. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2014.
Principles of Consolidation	'
	Principles of Consolidation – The accompanying consolidated financial statements include the accounts and operations of Acquired Sales for all periods presented, the accounts and discontinued operations of Cogility Software Corporation through February 11, 2013 and the accounts and discontinued operations of Defense & Security Technology Group, Inc. from February 14, 2012 through September 30, 2013. Intercompany accounts and transactions have been eliminated on consolidation.
Basic and Diluted Earnings (Loss) Per Common Share	'
	Basic and Diluted Earnings (Loss) Per Common Share – Basic earnings (loss) per common share is determined by dividing earnings (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per common share is calculated by dividing earnings (loss) by the weighted-average number of common shares and dilutive common share equivalents outstanding during the period. When dilutive, the incremental potential common shares issuable upon exercise of stock options and warrants are determined by the treasury stock method. The following table summarizes the calculations of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2014 and 2013.


		For the Three Months		For the Six Months
		Ended		Ended
		June 30,		June 30,
		2014	2013	2014	2013
	Loss from Continuing Operations	($63,912)	($63,479)	($131,316)	($206,694)
	Income from Discontinued Operations	-	1,109,858	-	4,995,048
	Net Income (Loss)	($63,912)	$1,046,379	($131,316)	$4,788,354
	Weighted -Average Shares Outstanding	2,269,648	2,960,444	2,269,648	2,946,686
	Basic and Diluted Earnings (Loss) per Share
	Continuing Operations	($0.03)	($0.02)	($0.06)	-0.07
	Discontinued Operations	-	0.37	-	1.69
	Basic and Diluted Earnings (Loss) per Share	($0.03)	$0.35	($0.06)	$1.62

	There were 2,148,774 employee stock options and 938,000 warrants outstanding during the three and six months ended June 30, 2014 that were excluded from the computation of diluted earnings (loss) per share because their effects would have been anti-dilutive. There were 2,173,774 employee stock options and 938,000 warrants outstanding during the three and six months ended June 30, 2013 that were excluded from the computation of diluted earnings (loss) per share because their effects would have been anti-dilutive.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements - In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date will be the first quarter of fiscal year 2016 using one of two retrospective application methods. The Company has not determined the potential effects on the financial statements.

	In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-12, Compensation-Stock Compensation (Topic 718)-Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force). ASU No. 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period shall be treated as a performance condition. The effective date will be the first quarter of fiscal year 2016. The Company has not determined the potential effects on the financial statements.

Note_1_Basis_of_Presentation_a2

Note 1 - Basis of Presentation and Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Earnings Per Share, Basic and Diluted	'

		For the Three Months		For the Six Months
		Ended		Ended
		June 30,		June 30,
		2014	2013	2014	2013
	Loss from Continuing Operations	($63,912)	($63,479)	($131,316)	($206,694)
	Income from Discontinued Operations	-	1,109,858	-	4,995,048
	Net Income (Loss)	($63,912)	$1,046,379	($131,316)	$4,788,354
	Weighted -Average Shares Outstanding	2,269,648	2,960,444	2,269,648	2,946,686
	Basic and Diluted Earnings (Loss) per Share
	Continuing Operations	($0.03)	($0.02)	($0.06)	-0.07
	Discontinued Operations	-	0.37	-	1.69
	Basic and Diluted Earnings (Loss) per Share	($0.03)	$0.35	($0.06)	$1.62

Note_5_Sale_of_Subsidiaries_an1

Note 5- Sale of Subsidiaries and Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Operating results of Cogility included in discontinued operations	'
	Revenue and operating results of Cogility and DSTG included in discontinued operations for the three and six months ended June 30, 2014 and 2013 were as follows:

		For the Three Months Ended		For the Six Months Ended
		June 30,		June 30,
		2014	2013	2014	2013

	Revenues	-	140,360	-	485,581

	Net Income from Discontinued Operations	-	115,180	-	268,980

Note_1_Basis_of_Presentation_a3

Note 1 - Basis of Presentation and Significant Accounting Policies: Basis of Presentation (Details)	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2013	Jan. 12, 2013
	Defense Securities Technology Group	Defense & Security Technology Group, Inc	Drumright Group LLC purchase of Cogility
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions	100.00%	'	'
Stock Sold to Acquirer, percent	'	100.00%	100.00%

Note_1_Basis_of_Presentation_a4

Note 1 - Basis of Presentation and Significant Accounting Policies: Basic and Diluted Earnings (Loss) Per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Details	'	'	'	'
Loss from Contining Operations	($63,912)	($63,479)	($131,316)	($206,694)
Income from Discontinued Operations	0	1,109,858	0	4,995,048
Net Income (Loss)	($63,912)	$1,046,379	($131,316)	$4,788,354
Weighted - Average Shares Outstanding	2,269,648	2,960,444	2,269,648	2,946,686
Basic and Diluted Earnings (Loss) per Share	'	'	'	'
Continuing Operations	($0.03)	($0.02)	($0.06)	($0.07)
Discontinued Operations	$0	$0.37	$0	$1.69
Basic and Diluted Earnings (Loss) per Share	($0.03)	$0.35	($0.06)	$1.62

Note_1_Basis_of_Presentation_a5

Note 1 - Basis of Presentation and Significant Accounting Policies: Basic and Diluted Earnings (Loss) Per Common Share (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Equity Option	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,148,774	2,173,774	2,148,774	2,173,774
Warrant	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	938,000	938,000	938,000	938,000

Note_2_Risks_and_Uncertainties1

Note 2 - Risks and Uncertainties (Details) (USD $)	3 Months Ended		6 Months Ended
Note 2 - Risks and Uncertainties (Details) (USD $)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Details	'	'	'	'	'
Accumulated deficit	($7,157,473)	'	($7,157,473)	'	($7,026,157)
Loss from Contining Operations	-63,912	-63,479	-131,316	-206,694	'
Net cash used in operating activities of continuing operations	'	'	($126,316)	($244,386)	'

Note_3_Shareholders_Equity_Det

Note 3 - Shareholders' Equity (Details) (USD $)	6 Months Ended		1 Months Ended	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Feb. 28, 2014	Dec. 31, 2013	Dec. 31, 2013
	Jun. 30, 2014	Jun. 30, 2013	Matthew Ghourdjian	Matthew Ghourdjian	Common Stock
Stock Repurchased During Period, Shares	'	'	'	'	-690,796
Payment for Purchase of Common Stock	$20,000	$0	$20,000	$30,000	'
Share Price	'	'	$0.07	'	'
Options, Outstanding	2,148,774	'	'	'	'
Options, Outstanding, Weighted Average Exercise Price	$2.35	'	'	'	'
Options, Outstanding, Weighted Average Remaining Term	'5 years 3 months 14 days	'	'	'	'
Options, Outstanding, Intrinsic Value	742,810	'	'	'	'
Warrants, Outstanding	938,000	'	'	'	'
Warrants, Weighted Average Exercise Price	$2.32	'	'	'	'
Warrants, Outstanding, Weighted Average Remaining Contractual Life	2.36	'	'	'	'
Warrants, Outstanding, Intrinsic Value	$213,000	'	'	'	'

Note_5_Sale_of_Subsidiaries_an2

Note 5- Sale of Subsidiaries and Discontinued Operations (Details) (USD $)

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jul. 16, 2013

Feb. 11, 2013

Jan. 12, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2012

Jun. 30, 2014

Dec. 31, 2013

Sep. 30, 2013

Drumright Group LLC purchase of Cogility

Cogility Software

Defense Securities Technology Group

Defense & Security Technology Group, Inc

Stock Sold to Acquirer, percent

100.00%

Proceeds from sale of discontinued operations, net of cash sold

$1,000,000

$3,975,000

Business Divestiture, Deferred Purchase Amount Receivable

3,000,000

Business Divestiture, Deferred Purchase Amount Receivable, Due in 6 Months

1,500,000

Business Divestiture, Deferred Purchase Amount Receivable, Deduction Allowance

2,000,000

32,258

Business Divestiture, Deferred Purchase Amount Receivable, Due in 1 Year

1,500,000

Business Divestiture, Escrow Collateral

300,000

Net Liabilities

25,886

40,886

32,899

Sale of Subsidiary, Down Payment Terms

'Under the terms of the agreement, Acquired Sales was required to transfer Cogility to Drumright without any liabilities. To accomplish this requirement, the $3,975,000 down payment was placed into an escrow account and to the extent necessary was used to pay Cogility’s liabilities, including liabilities that were secured by Cogility’s assets or its capital stock.

Gain (Loss) on Disposition of Business

5,007,899

4,726,068

Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions

100.00%

Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax

$104,946

Note_5_Sale_of_Subsidiaries_an3

Note 5- Sale of Subsidiaries and Discontinued Operations: Schedule of Operating results of Cogility included in discontinued operations (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income from Discontinued Operations	'	$115,180	'	$268,980
Cogility Software	'	'	'	'
Revenues	0	140,360	0	485,581
Income from Discontinued Operations	$0	$115,180	$0	$268,980

Note_6_Subsequent_Events_Detai

Note 6- Subsequent Events (Details) (Subsequent Event, USD $)	Jul. 14, 2014	Jul. 31, 2014	Jun. 30, 2014	Jul. 31, 2014
	Roberti Jacobs Family Trust	Secured Promissory Note	Secured Promissory Note	Secured Promissory Note
		William Noyes Webster Foundation Inc	William Noyes Webster Foundation Inc	William Noyes Webster Foundation Inc
				Payment To Consultant
Debt Instrument, Face Amount	'	'	$1,500,000	'
First Installment	'	'	602,500	'
Advances	'	600,000	'	2,500
Debt Instrument, Payment Terms	'	'	'The amount and timing of subsequent loan installments under the Note, which could total $897,500, have not yet been mutually agreed upon between the Foundation and AQSP.	'
Debt Instrument, Interest Rate, Stated Percentage	'	'	12.50%	'
Loans Payable, Current	$300,000	'	'	'