Q1 of 2011 was our last quarter based on our former business model and strategy and it was again a strong quarter as so many before. However, as of the second quarter of this year we do no longer follow the same approach to help increase shareholder value and to achieve a better market value for our equity. In the coming months we focus on preparing investments and selecting appropriate targets. We are looking forward to implementing our new and innovative investment strategy and asset sales now as announced in prior communications.
The Company (ALIF) announced that it intends to transform itself into a global mobile technology investment venture. The Company's subsidiary Artificial Life Investments Ltd. launched in 2010 (based in the Cayman Islands) will become the key investment entity expanding on its initial investments. At the end of 2010 Artificial Life Investments Ltd. made its first minority investments in a German augmented reality start-up company and in a mobile health start-up company with a focus on the Middle East and Africa and invested approximately 12 mm USD in cash and assets in exchange for equity. The Company also has invested over 40 mm USD and acquired intellectual property (IP) and certain license rights over the last few years and has produced substantial new assets and IP of its own which it intends to license or divest and use the resulting proceeds for investment purposes.
During the course of the audit of the Company's financial statements for the fiscal year ended December 31, 2010, BDO raised a number of accounting matters that would have prevented BDO from rendering an unqualified opinion if the issues were not resolved. There were discussions between the Company, its audit committee and BDO in connection with these matters, which principally related to: the commercial substance of certain material transactions, accounting for recognition of revenues (including timing and actual receipt of cash), valuation of intangible assets, the impact of these matters on the Company's financial statements as of December 31, 2010 and whether prior years' financial statements were affected by these matters, and accounting for a joint venture agreement. These issues remained unresolved at the end of BDO's engagement, which occurred before BDO could complete its work on these and other issues. In addition, as of the date of the Company's termination of BDO's engagement, BDO was unable to determine whether the Company had taken timely and appropriate remedial actions with respect to possible illegal acts, within the meaning of Section 10A of the Securities Exchange Act of 1934, identified on June 1, 2011 by BDO to the Company.