Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Tables)

v3.20.2
Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations

The assets and liabilities of the discontinued operations have been reflected in the condensed consolidated balance sheet as of September 30, 2020 and consist of the following:

 

    As of  
    September 30,  
    2020  
Current Assets:   $ -  
Non-Current Assets     -  
Total Assets   $ -  
         
Current Liabilities:        
Trade and Other Payables of Discontinued Operations   $ 1,457,671  
Total Current Liabilities     1,457,671  
Non-Current Liabilities     -  
Total Liabilities   $ 1,457,671  
         
Shareholder Equity   $ -  
         
Total Liabilities and Shareholder Equity   $ 1,457,671  

 

The results from the discontinued operations have been reflected in the condensed consolidated statements of operations for the three and nine months ended September 30, 2020 and consist of the following:

 

    For the     For the  
    Three Months     Nine Months  
    Ended     Ended  
    September 30,     September 30,  
    2020     2020  
Product Revenue   $ -     $ 361,627  
Product Cost of Sales     109,983       660,023  
Gross Loss     (109,983 )     (298,396 )
                 
Administrative Expenses     62,550       196,901  
Sales and Marketing Expenses     29,300       40,586  
Regulatory and Compliance Expenses     59,910       199,668  
Litigation Settlement Expenses     3,949,414       4,031,131  
Amortization of Non-Current Assets     -       17,601  
Impairment of Prepaid Royalties     -       291,442  
Impairment of Production Equipment     -       18,680  
Impairment of Intangible Assets     -       152,822  
                 
Loss from Discontinued Operations   $ (4,211,157 )   $ (5,247,227 )

   

As a result of the discontinued operations, the previously presented 2019 financial statements have been revised to present the consolidated financial statements of the continuing operations separate from the discontinued operations. The effects on the consolidated balance sheet as of December 31, 2019 were as follows:

 

    December 31, 2019  
    As previously              
    Reported     Adjustment     As Revised  
ASSETS                        
Current Assets                        
Cash   $ 517,444     $ -     $ 517,444  
Marketable Securities     9,164,273       -       9,164,273  
Accounts Receivable, net     42,881       42,881       -  
Deposits and Other Receivables     -       -       -  
Inventories, net     198,985       198,985       -  
Prepaid Expenses     387,231       46,260       340,971  
Current Assets – discontinued operations     -       (288,126 )     288,126  
Total Current Assets     10,310,814       -       10,310,814  
                         
Non-Current Assets                        
Prepaid Expenses, net of current     252,308       252,308       -  
Restricted Cash     115,094       -       115,094  
Plant, Property and Equipment, net     33,574       23,020       10,554  
Intangible assets, net     170,423       170,423       -  
Other assets     2,722       -       2,722  
Non-current Assets – discontinued operations             (445,751 )     445,751  
Total Non-Current Assets     574,121       -       574,121  
                         
Total Assets   $ 10,884,935     $ -     $ 10,884,935  
                         
LIABILITIES                        
Current Liabilities                        
Trade and Other Payables     1,529,765       628,558       901,207  
Current Liabilities – discontinued operations     -       (628,558 )     628,558  
Total Current Liabilities     1,529,765       -       1,529,765  
                         
Total Liabilities     1,529,765       -       1.529.765  
                         
Commitments and Contingencies                        
                         
SHAREHOLDERS’ EQUITY                        
Preferred Stock, No par value, 50,000,000 total preferred shares authorized     -       -       -  
Common stock, No par value, 100,000,000 shares authorized 1,738,837 issued and outstanding as of December 31, 2019     128,920,414       -       128,920,414  
Accumulated Other Comprehensive Income (Loss)     17,886       -       17,886  
Accumulated Deficit     (119,583,130 )     -       (119,583,130 )
Total Shareholders’ Equity     9,355,170       -       9,355,170  
                         
Total Liabilities and Shareholders’ Equity   $ 10,884,935     $ -     $ 10,884,935  

   

The effects on the condensed consolidated statement of operations and comprehensive income (loss) for the three and nine months ended September 30, 2019 were as follows:

 

    For the Three Months Ended     For the Nine Months Ended  
    September 30, 2019     September 30, 2019  
    As Previously Reported     Adjusted     As Revised     As Previously Reported     Adjusted     As Revised  
Product Revenue   $ 420,812     $ 420,812     $ -     $ 1,497,448     $ 1,497,448     $ -  
Product Cost of Sales     (285,510 )     (285,510 )     -       (751,311 )     (751,311 )     -  
Gross Income     135,302       135,302       -       746,137       746,137       -  
                                                 
Research and Development Expenses     -       -       -       -       -       -  
Administrative Expenses     895,026       51,882       843,144       2,859,288       171,607       2,687,681  
Sales and Marketing Expenses     38,262       32,099       6,163       202,242       183,492       18,750  
Compliance and Regulatory Expenses     57,502       57,502       -       206,802       206,802       -  
Litigation Settlement Expenses     -       -       -       75,000       -       75,000  
Amortization of Non-Current Assets     10,001       10,001       -       30,006       30,006       -  
Impairment of Intangible Assets     -       -       -       -       -       -  
                                                 
(Loss) income from Operations     (865,489 )     (16,182 )     (849,307 )     (2,627,201 )     154,230       (2,781,431 )
                                                 
Other (Income) Expense                                                
Foreign Currency Transaction (Gain) Loss     (32 )     -       (32 )     4,846       -       4,846  
Gain on Investments     (6,416 )     -       (6,416 )     (2,155 )     -       (2,155 )
Interest and Dividend Income     (22,015 )     -       (22,015 )     (81,017 )     -       (81,017 )
Total Other Income     (28,463 )     (16,182 )     (28,463 )     (78,326 )     154,230       (78,326 )
                                                 
Loss from Continuing Operations     (837,026 )     -       (820,844 )     (2,548,875 )     -       (2,703,105 )
                                                 
Income/(Loss) from Discontinued Operations     -       16,182       (16,182 )     -       (154,230 )     154,230  
                                                 
Loss Before Income Taxes     (837,026 )     -       (837,026 )     (2,548,875 )     -       (2,548,875 )
                                                 
Income Tax Benefit     -       -       -       -       -       -  
                                                 
Net Loss     (837,026 )     -       (837,026 )     (2,548,875 )     -       (2,548,875 )
                                                 
Other Comprehensive (Loss) Income                                                
Net Unrealized Gain (Loss) on Marketable Securities     (1,805 )     -       (1,805 )     45,597       -       45,597  
Total Other Comprehensive (Loss) Income     (1,805 )     -       (1,805 )     45,597       -       45,597  
                                                 
Comprehensive Loss   $ (838,831 )   $ -     $ (838,831 )   $ (2,503,278 )     -     $ (2,503,278 )

 

The depreciation, amortization and significant operating noncash items of the discontinued operations were as follows:

 

    For the Three Months Ended     For the Nine Months Ended  
    September 30,     September 30,  
    2020     2019     2020     2019  
Depreciation and amortization   $ -     $ 13,087     $ 21,941     $ 35,156  
Impairment of Prepaid Royalties     -       -       291,442       -  
Impairment of intangible assets     -       -       152,822       -  
Inventory adjustment for net realizable value     -       -       197,723       -  
Reserve for obsolete inventory     -       79,413       -       126,422  
Share based compensation - shares issued to Chubeworkx     2,510,000       -       2,510,000       -  
    $ 2,510,000     $ 92,500     $ 3,173,928     $ 161,578