ND ASSETS HELD FOR SALE KCDL — On July 23, 2010, the Company sold its wholly owned subsidiary, KCAL to K12 Inc. in exchange for 2,750,000 shares of Series A Special Preferred Stock in K12 Inc., which had a fair value of $66.8 million on the date of sale and a fair value of $49.3 million and $78.8 million at December 31, 2011 a