Steve, pls explain the significance of the contra accounts.

$0 rev's or $1,583,392 for the quarter if not in contra account?

Net income/(loss) from discontinued operations: 1,583,392

We would be singing a different tune if we were looking at $1.58M. If this rev is part of "disputed assets," why are they disputed? Wasn't the termination of the agreement with JC clean? If the assets are disputed, are they in jeopardy? If so, legal action or further negotiation or ? What will it take to put the rev's in the plus column?

Additionally, the Company has reclassified the values of assets and liabilities of Punch TV as reported in the Company’s financial statements for the year ended December 31, 2012 to contra accounts labeled on the Balance Sheet as Net Disputed Assets and Net Disputed Liabilities , respectively.

The accounting is a little arcane, but I understand it a little better (Accounting 101, groan) after reading Investopedia and the Accountess's explanation.

Accounting: Contra Account Explained by a Student

http://ameliarojas.blogspot.com/2012/08/accou...count.html