Discontinued Operations and Deconsolidation of Subsidiary [Text Block] | 3. Discontinued Operations and Deconsolidation of Subsidiary On June 30, 2015, the Company discontinued the operations of its wholly-owned subsidiary DSL. DSL sold hand tools in Canada. All of the shares of DSL held by the Company were returned to DSL for cancellation and as of June 30, 2015 the Company no longer held any interest in DSL. The Company recorded the deconsolidation of the subsidiary as an equity transaction, which resulted in a charge of $35,932 to additional paid in capital. The Company has recognized the separation of DSL in accordance with Accounting Standards Codification (ASC) 205-20, Discontinued Operations The Company’s historical financial statements have been revised to present the operating results of the DSL business as a discontinued operation. Assets and liabilities related to the discontinued operations of DSL are as follows: December 31, 2014 Accounts receivable $ 91,173 Inventory 52,049 Prepaid expenses 7,534 Due from related party 322,398 Total Current Assets 473,154 Property and equipment, net of accumulated depreciation of $20,068 151 Total Assets $ 473,305 Current Liabilities Checks written in excess of funds on deposit $ 1,215 Accounts payable 202,693 Accrued liabilities 2,810 Due to related party 50,977 Line of credit 138,478 Total Liabilities $ 396,173 Summarized results of the discontinued operation are as follows for the three and six months ended June 30, 2015 and 2014: Three Months Three Months Six Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2015 2014 2015 2014 Revenue $ 220,140 $ 241,529 $ 359,017 $ 435,863 Cost of Sales 158,991 159,388 265,888 296,504 Gross Profit 61,149 82,141 93,129 139,359 Expenses Bank charges and interest 3,837 4,390 6,811 7,858 Selling, marketing and administrative 62,170 57,978 136,290 123,478 Total Expenses 66,007 62,368 143,101 131,336 Other Expenses Gain (Loss) on foreign exchange (4,339 ) (1,161 ) (28,344 ) (5,445 ) Net Income (Loss) from Discontinued Operations $ (519 ) $ 20,934 $ (78,316 ) $ 2,578 Cash flows from discontinued operations: Six Months Six Months Ended Ended June 30, June 30, 2015 2014 Operating cash flows $ (149,490 ) $ (75,647 ) Investing cash flows – – Financing cash flows 107,765 32,869 Net cash flows provided by discontinued operations $ (41,725 ) $ (42,778 ) |