Reconciliation
of revenue and expense items in discontinued operations in the consolidated statements of operations:
SCHEDULE OF DISCONTINUED OPERATION
|
|
Year
Ended |
|
|
|
December 31, |
|
|
|
2020 |
|
|
|
|
|
REVENUES |
|
$ |
541,200 |
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
Payroll and related
expenses |
|
|
515,741 |
|
General
and administrative |
|
|
53,398 |
|
Total
operating expenses |
|
|
569,139 |
|
Financing
costs including interest |
|
|
46,967 |
|
Gain
on debt extinguishment |
|
|
(1,032,160 |
) |
INCOME FROM DISCONTINUED
OPERATIONS |
|
$ |
957,254 |
|
Reconciliation
of cash flows from operating activities and financing activities on the statements of cash flows:
|
|
Year Ended |
|
|
|
December 31, |
|
|
|
2020 |
|
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
|
|
Net income
from discontinued operations |
|
$ |
957,254 |
|
Adjustments to reconcile
net income to net cash provided by discontinued operations: |
|
|
|
|
Gain on forgiveness
or assumption of promissory notes and accrued expenses |
|
|
(1,032,160 |
) |
Changes in operating
assets and liabilities |
|
|
|
|
Increase in accounts
payable and accrued expenses |
|
|
22,500 |
|
Increase
in accrued interest - related party |
|
|
46,967 |
|
Net cash provided
by operating activities |
|
|
(5,439 |
) |
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
Proceeds from promissory
notes - related parties |
|
|
338,373 |
|
Repayments
on promissory notes – related parties |
|
|
(1,590 |
) |
Net cash provided
by financing activities |
|
|
336,783 |
|
|
|
|
|
|
Net cash provided
by discontinued operations |
|
$ |
331,344 |
|
|