Worldgate Comm Inc. (fka WGATQ)

[ALERTS100%to10000%GAIN]

WGAT~~The Company does not have multiple business segments. During fiscal year 2010, the Company had two reportable business segments: Services and Equipment. The Services segment marketed and distributed products and related recurring services to end users. The Services segment was previously known as the Consumer Services segment. The Equipment segment sells digital video phones directly to telecommunications service providers who already have a digital voice and video management and network infrastructure. The Equipment segment was previously known as the Original Equipment Manufacturer or OEM segment. In connection with cost reduction measures in March 2011, the Company discontinued offering its digital voice and video phone services to customers.


In March 2011, the Company’s Board of Directors approved the discontinuation of the Services segment of the business. Based on this approval, the Company determined that this segment substantially met the criteria to report the segment as "Discontinued Operations" in accordance with ASC 360, “Property, Plant and Equipment.” Accordingly, assets classified as discontinued have been measured at the lower of the carrying amount or fair value less cost to sell. The Company has completed the discontinuation of the operations of the Services segment of the business during fiscal year 2011. Going forward, the Company will cease to report that segment’s results.

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