NOTE I - DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2019

Notes

NOTE I - DISCONTINUED OPERATIONS

NOTE I – DISCONTINUED OPERATIONS    In response to the changes in the telecommunications market and deterioration in the Company’s ability to effectively compete, the Company made the decision to exit the CLEC business. On October 27, 2017, the Company’s board of directors adopted a plan to exit the CLEC business as soon as possible through the sale of its wholly owned CLEC subsidiary and/or substantially all of its CLEC subsidiary’s operating assets. The Company was in negotiations with a potential buyer at December 31, 2017, which buyer subsequently purchased substantially all of its CLEC subsidiary’s operating assets pursuant to an asset purchase agreement which was executed and closed on February 1, 2018, (the “Sale”).    The Company determined that the Sale represented a strategic shift that will have a major effect on the Company’s operations and financial results since it represented a complete exit from the CLEC business and, therefore, classified its CLEC subsidiary as held for sale at December 31, 2017.    The Company recognized a gain of $233,277 on the Sale based on total consideration of $264,872 less total basis in the assets sold and transactions costs of $31,595. The assets sold consisted primarily of customers and associated customer premise equipment.  Assets and Liabilities of Discontinued Operations  Operating Results of Discontinued Operations 

	December 31,
	2019	2018
Revenues included in discontinued operations
Total revenue	$-	$28,091
Operating costs and expenses included in discontinued operations
Cost of revenue	$-	$84,301
Selling, general and administrative expenses	1,595	8,666
Depreciation and amortization	-	9,273
Interest expense	-	51
Total operating costs and expenses discontinued operations	1,595	102,291
Other Income included in discontinued operations
Gain on sale of assets	-	233,277
Other income from applied customer deposits	638	8,396
Net Income (Loss) from Discontinued Operations	$(957)	$167,473
Net Income (Loss) per share from discontinued operations basic and diluted	$(0.00)	$0.01

Cash Flows from Discontinued Operations