Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.20.2
Discontinued Operations
9 Months Ended
Sep. 30, 2020
I I U Inc | Stock Purchase Agreement  
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]  
Discontinued Operations

Note 10. Discontinued Operations

On January 8, 2020, the Company entered into a Stock Purchase Agreement (“SPA”) with Craven pursuant to which the Company sold to Craven all of the issued and outstanding shares of IIU for $3,562,569.  The purchase price was paid by Craven through the cancellation of the $3,461,782 Craven Convertible Note plus forgiveness of $100,787 of accrued interest. The Company originally paid $4,969,586 of goodwill. As a result, goodwill was impaired by $1.65 million. The sale of IIU resulted in a gain of $16,428.  

 

The impact of this transaction is reflected as a discontinued operation in the consolidated financial statements. Pursuant to ASU 2014-08, the major classes of assets and liabilities of IIU were as follows:

 

 

As of December 31, 2019

Major classes of assets

 

Cash

$   246,914

Related party receivable

27,738

Prepaid expenses

2,301

Total major classes of current assets – discontinued assets

276,953

Fixed assets, net

27,245

Total major classes of assets – discontinued assets

$   304,198

 

 

Accounts payable and accrued expenses

$   144,006

Note payable – short term

100,672

Other liabilities

21,153

Income taxes payable

14,226

Total major classes of current liabilities – discontinued liabilities

280,057

 

 

Debt

517,584

Total major classes of liabilities - discontinued liabilities

$   797,641

 

 

 

The operating results for IIU, Inc. have been presented in the accompanying consolidated financial statements of operations for the three and nine months ended September 30, 2020 and 2019 as discontinued operations are summarized below:

 

 

Three Months Ended September 30, 2020

Three Months Ended September 30, 2019

 

Nine Months Ended September 30, 2020

 

Nine Months Ended September 30, 2019

Revenue

$              -

$      221,085

$              -

$       501,244

Total operating costs and expenses

-

101,068

-

428,445

Gain (Loss) from discontinued operations

-

120,017

-

72,799

Other expense, net

-

16,455

-

33,166

Gain on disposal of discontinued operations

-

-

16,428

-

Net gain (loss) from discontinued operations

$               -

$  103,562

$     16,428

$   39,633

 

 

 

 

 

Net cash provided by operating activities

$                -

$ (48,205)

$                -

65,624

Net cash (used in) provided by investing activities

  -

(76,695)

(246,914)

(25,368)

Net cash used in financing activities

-

(18,418)

 

(56,304)