Quarterly report pursuant to Section 13 or 15(d)

Equity Method Investments

Equity Method Investments

9 Months Ended

Sep. 30, 2012

6. Equity Method Investments. Our investment in Betazone, which is our significant unconsolidated subsidiary, is accounted for using the equity method of accounting. Summarized financial information for our investment in Betazone assuming 100% ownership interest is as follows:

	September 30, 2012			December 31, 2011
Balance sheet
Current assets		9,768			124,462
Current liabilities		264,199			131,672

Statement of operations
Revenues		29,534			315,346
Net loss		(229,323	)		(102,047	)

In 2011, the Company's share of Betazone's losses became equal in amount to the carrying value of its investment in Betazone. Accordingly, the Company suspended the equity method of accounting for its investment and no additional losses were charged to operations. The Company’s unrecorded share of losses for the nine months ended September 30, 2012 totaled $103,195.

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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