DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2021

DISCONTINUED OPERATIONS.

DISCONTINUED OPERATIONS

NOTE 3. DISCONTINUED OPERATIONS

On July 16, 2021, we entered into an Asset Purchase Agreement with an individual to sell substantially all the assets of our Operations Segment for a total of $150,000 and 10% of profits generated by the buyer in the states of Michigan, Mississippi, and Massachusetts for a period of twelve months from the closing. On August 2, 2021, the sale of the Operations Segment was completed. Pursuant to amendment, the buyer paid the additional $75,000 in March 2022, and the 10% profit share described above was eliminated.

Assets and liabilities of discontinued operations for the Operations Segment included the following:

	December 31,
	2021		2020
Accounts receivable, net	$	—	$	187,185
Prepaid expenses and other current assets		—		519,274
Current assets discontinued operations		—		706,459
Property and equipment, net		—		43,697
Noncurrent assets discontinued operations		—		43,697
Accounts payable and accrued expenses		—		169,492
Customer deposits		—		517,931
Current liabilities discontinued operations	$	—	$	687,423

A breakdown of the discontinued operations for the Operations Segment is presented as follows:

	Year ended
	December 31,
	2021		2020
Product revenues	$	614,764	$	3,655,045
Service revenues		523,994		1,081,291
Total revenues		1,138,758		4,736,336
Cost of sales		1,157,035		4,078,571
Selling, general and administrative		407,648		797,148
Professional fees		4,944		35,976
Depreciation and amortization		11,359		15,778
Total costs and expenses		1,580,986		4,927,473
Loss from discontinued operations	$	(442,228)	$	(191,137)

The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows. The following table provides selected information on cash flows related to discontinued operations for the Operations Segment for the years ended December 31, 2021 and 2020.

	Year ended
	December 31,
	2021		2020
Accounts receivables	$	187,185	$	(101,981)
Prepaid expenses and other current assets		519,274		(212,624)
Depreciation and amortization		11,359		15,778
Capital expenditures		—		(9,489)
Accounts payable and accrued expenses		(169,492)		5,641
Customer deposits		(517,931)		(44,872)

Security Segment

On December 26, 2019, the board of directors and management made the strategic decision to investigate a possible buyer for the Security Segment and if no buyer could be found, cease operations of the Security Segment. We transferred all our Colorado security contracts and employees to a company on January 16, 2020. On February 6, 2020 we cancelled all our security contracts in California. The assets and liabilities classified as discontinued operations for the Security Segment are presented separately in the balance sheet and the operating results for the years ended December 31, 2021 and 2020 are presented as discontinued operations.

Assets and liabilities of discontinued operations for the Security Segment included the following:

	December 31,
	2021		2020
Cash and cash equivalents	$	—	$	5,551
Current assets discontinued operations		—		5,551
Accounts payable and accrued expenses		—		1,513
Current liabilities discontinued operations	$	—	$	1,513

A breakdown of the discontinued operations for the Security Segment is presented as follows:

	Year ended
	December 31,
	2021		2020
Service revenues		—		120,207
Total revenues		—		120,207
Cost of sales		—		88,541
Selling, general and administrative		—		83,829
Depreciation and amortization		—		2,174
Total costs and expenses		—		174,544
Loss from discontinued operations	$	—	$	(54,337)

The cash flows related to discontinued operations have not been segregated, and are included in the consolidated statements of cash flows. The following table provides selected information on cash flows related to discontinued operations for the Security Segment for the years ended December 31, 2021 and 2020.

	Year ended
	December 31,
	2021		2020
Accounts receivables	$	—	$	280,058
Prepaid expenses and other current assets		—		17,780
Depreciation and amortization		—		2,174
Accounts payable and accrued expenses		—		(86,796)
Customer deposits		—		(60,940)

Consumer Goods Segment

On December 26, 2019, the board of directors and management made the strategic move to cease operations of Chiefton. On December 26, 2019, the board of directors committed to a plan to cease operations of STOA Wellness. We transferred all assets of STOA Wellness to an individual on January 10, 2020, in exchange for the release on the outstanding lease. The assets and liabilities classified as discontinued operations for the Consumer Goods Segment are presented separately in the balance sheet and the operating results for the years ended December 31, 2021 and 2020 are presented as discontinued operations.

Assets and liabilities of discontinued operations for the Consumer Goods Segment included the following:

	December 31,
	2021		2020
Accounts payable and accrued expenses	$	—	$	53,128
Current liabilities discontinued operations	$	—	$	53,128

A breakdown of the discontinued operations for the Consumer Goods Segment is presented as follows:

	Year ended
	December 31,
	2021		2020
Product revenues		—		33
Total revenues		—		33
Selling, general and administrative		—		5,582
Total costs and expenses		—		5,582
Loss from discontinued operations	$	—	$	(5,549)

The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows. The following table provides selected information on cash flows related to discontinued operations for 2021 and 2020.

	Year ended
	December 31,
	2021		2020
Accounts receivables	$	—	$	7,836
Prepaid expenses and other current assets		—		14,394
Accounts payable and accrued expenses		—		(71,340)