Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Acquisition

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Note 3 - Acquisition
 9 Months Ended
Mar. 31, 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 nine months ended March 31, 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 nine months from date of acquisition to March 31, 2012
    25,445,308       545,086  
                 
Supplemental pro forma from Jul 1, 2011 through March 31-2012
    25,928,508       601,650  
                 
Supplemental pro forma from Jul 1, 2010 through March 31-2011
    31,197,552       6,886,278