| Schedule of Discontinued Operation |
A reconciliation of the major
classes of line items constituting the income (loss) from discontinued operations, net of income taxes as is presented in the consolidated
statements of operations for the years ended December 31, 2020, and 2019 are summarized below:
Reconciliation of liabilities
included in current liabilities held for disposal on the consolidated balance sheet:
| |
|
Year ended December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| Carrying amounts of major classes of liabilities included as part of liabilities held for disposal |
|
|
|
|
|
|
|
|
| Accounts payable and accrued expenses |
|
$ |
- |
|
|
$ |
15,000 |
|
| Accrued interest - related parties |
|
|
- |
|
|
|
15,426 |
|
| Notes payable - related parties |
|
|
- |
|
|
|
788,500 |
|
| Total liabilities included in the liabilities held for disposal |
|
$ |
- |
|
|
$ |
818,926 |
|
Reconciliation of revenue and
expense items in discontinued operations on the consolidated statement of operations:
| |
|
Year ended December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| |
|
|
|
|
|
|
| REVENUES |
|
$ |
541,200 |
|
|
$ |
916,667 |
|
| |
|
|
|
|
|
|
|
|
| OPERATING EXPENSES |
|
|
|
|
|
|
|
|
| Payroll and related expenses |
|
|
515,741 |
|
|
|
835,183 |
|
| Professional fees |
|
|
- |
|
|
|
7,500 |
|
| General and administrative |
|
|
53,398 |
|
|
|
106,256 |
|
| Total Operating Expenses |
|
|
569,139 |
|
|
|
948,939 |
|
| Financing costs including interest |
|
|
46,967 |
|
|
|
15,426 |
|
| Gain on debt extinguishment |
|
|
(1,032,160 |
) |
|
|
- |
|
| INCOME (LOSS) FROM DISCONTINUED OPERATIONS |
|
$ |
957,254 |
|
|
$ |
(47,698 |
) |
Reconciliation of cash flows
from operating activities and financing activities on the consolidated statement of cash flow:
| |
|
Year ended December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
| Net Income (Loss) from Discontinued Operations |
|
$ |
957,254 |
|
|
$ |
(47,698 |
) |
| Adjustments to reconcile net loss 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 |
|
|
|
15,000 |
|
| Increase in contract liabilities - related party |
|
|
- |
|
|
|
(117,667 |
) |
| Increase in accrued interest - related party |
|
|
46,967 |
|
|
|
15,426 |
|
| Net cash used in operating activities |
|
|
(5,439 |
) |
|
|
(134,939 |
) |
| |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
| Proceeds from promissory notes - related parties |
|
|
338,373 |
|
|
|
788,500 |
|
| Repayments on promissory notes - related parties |
|
|
(1,590 |
) |
|
|
- |
|
| Net cash provided by financing activities |
|
|
336,783 |
|
|
|
788,500 |
|
| |
|
|
|
|
|
|
|
|
| Net cash provided by discontinued operations |
|
$ |
331,344 |
|
|
$ |
653,561 |
|
|