iGambit is a company focused on the technology markets. Our sole operating subsidiary, Gotham Innovation Lab, Inc., is in the business of providing media technology services to the real estate industry. During the year ended December 31, 2010 and during the nine months ended September 30, 2011 Gotham produced approximately $850,222 and $ 1,234,412 of revenue, respectively. We are focused on expanding the operations of Gotham by marketing the company to existing and potential new clients. Currently Gotham has several proposals outstanding to franchisees of one of its main customers, as well as other potential new clients. In addition to Gothams operations, we were receiving Quarterly Revenue Share Payments and Annual Increase Payments from Digi-Data Corporation, which were payable pursuant to the terms of an agreement under which we sold certain assets to DDC in 2006. We earned $1,898,435 and $242,099 of Contingency Payments from DDC in the year ended December 31, 2010, and the nine months ended September 30, 2011, respectively. The agreement with DDC ended on February 28, 2011. We expect the balance of the amounts due to be paid during 2011. We are also focused on acquiring or partnering with additional technology companies.
Assets. At September 30, 2011, we had $2,012,184 in total assets, compared to $2,336,788 at December 31, 2010. The decrease in total assets was primarily due to the decrease in cash used to fund the loss.
Liabilities. At September 30, 20110, our total liabilities were $256,386 compared to $351,617 at December 31, 2010. Liabilities consist of accounts payable and a note payable to a related party. We do not have any long term liabilities. The decrease in total liabilities was primarily due to the decrease in the income tax provision.
Stockholders Equity (Deficit). Our stockholders equity decreased to $1,755,798 at September 30, 2011 from $1,985,171 at December 31, 2010. This decrease was primarily due to an increase in accumulated deficit from $(441,058) at December 31, 2010 to $(671,246) at September 30, 2011 resulting from the end of the contingency payments from Digi-Data Corp.
Three Months Ended September 30, 2011 as Compared to Three Months Ended September 30, 2010
Revenues and Net Income. We had $410,258 of revenue during the three months ended September 30, 2011, as compared to $232,343 revenue during the three months ended September 30, 2010. The increase in revenue was due to revenue generated by our acquired subsidiary Gotham. In addition, we had no income from discontinued operations for the three months ended September 30, 2011, compared to $330,199 for the three months ended September 30, 2010 and net loss of $(153,473) for the three months ended September 30, 2011, compared to net income of $12,644 for the three months ended September 30, 2010. Our decrease in income from discontinued operations was due to the Digi-Data agreement ending on February 28, 2011.