Discontinued Operations

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 10 Discontinued Operations

In the fourth quarter of 2022, management determined that Sovryn’s television broadcast business was not an efficient use of resources in light of the Company’s strategic focus on developing and launching its core business, BCTV. As a result, management initiated a plan to exit the Sovryn business and reallocate resources toward BCTV, including repayment of senior debt associated with the acquisition and operation of Sovryn.

Accordingly, the operations of Sovryn have been classified as a discontinued operation in the accompanying consolidated financial statements for the years ended December 31 2023, in accordance with ASC 205-20.

On February 1, 2023, pursuant to an agreement with the lender of the Company’s senior secured notes, Sovryn was sold to the lender. The net assets of Sovryn at the time of disposition totalled $9,159,907, which was used to partially settle the principal balance of the senior secured notes, which totalled $16,500,000. The transaction was accounted for as a non-cash settlement.

Sovryn’s operating results prior to disposition, as well as any related expenses, were recorded as part of the net loss from discontinued operations and included in the consolidated statements of operations. The following is a summary of Sovryn for the years ended December 31, 2023: 

	December 31, 2023
Assets
Current assets	$	—
Accounts receivable, net		—
Prepaid expenses		—
Property, equipment and right-of-use assets		—
Intangible assets		—
Total Asset		—
Liabilities
Accounts payable and accrued liabilities		—
Lease liability obligations		—
Total Liabilities		—
Revenues		163,620
General and administrative expense		(9,170	)
Television operation expense		—
Amortization expense		—
Professional fees		(163,473	)
Finance costs		(686	)
Gain on partial settlement of senior secured notes (Note 8)		9,159,907
Loss on disposition of subsidiary		(9,159,907	)
Impairment loss on long-lived assets		—
Income tax expense		—
Loss from discontinued operations	$	(9,709	)