Annual report pursuant to Section 13 and 15(d)

Note 3 - Acquisition

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Note 3 - Acquisition
 12 Months Ended
Jun. 30, 2012
Business Combination Disclosure [Text Block]
NOTE 3 – ACQUISITION

On October 4, 2011, NTE, a wholly owned subsidiary of the Company, entered into an agreement with Investec Asset Finance PLC (“Investec”) a UK corporation, in which the Company obtained a 51% controlling interest in a newly-formed entity, Virtual Lease Services Holdings Limited (“VLSH”), which in turn acquired a 100% interest in Virtual Lease Services Limited (“VLS”). The purchase price paid in this transaction was entirely in the form of cash in the amount of $1,008,859.

At the time of acquisition the fair value of assets and liabilities acquired were as follows:

Cash
  $ 755,667  
Accounts Receivable
    469,970  
Fixed Assets
    200,579  
Customer List
    248,320  
Technology
    242,702  
Liabilities
    (330,071 )
Noncontrolling interest
    (792,351 )
Net Assets Acquired
    794,815  
         
Proceeds
    1,008,859  
Goodwill
  $ 214,044  

The acquisition of VLS is in alignment with the Company’s strategic plans and contributes to the continued expansion into technology markets through membership and practice acquisitions.

The amounts of acquired entities revenue and net income included in the Company’s consolidated statements of operations for the year ended June 30, 2012, and the revenue and net income (loss) of the combined entity had the date of acquisitions been July 1, 2011, or July 1, 2010, are as follows:

   
Revenue
   
Net income (loss)
 
             
Actual for the year from date of acquisition to June 30, 2012
    39,775,524       2,446,545  
                 
Supplemental pro forma from Jul 1, 2011 through June 30-2012
    40,258,724       2,503,109  
                 
Supplemental pro forma from Jul 1, 2010 through June 30-2011
    38,089,359       5,793,219