DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2022

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 of the assets of NBC 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 NBC 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:

		June 30,		December 31,
	2022		2021
Accounts receivable, net	$	—	$	—
Prepaid expenses and other current assets		—		—
Current assets discontinued operations		—		—
Property and equipment, net		—		—
Noncurrent assets discontinued operations		—		—
Accounts payable and accrued expenses		—		—
Customer deposits		—		—
Current liabilities discontinued operations	$	—	$	—

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

	Three months ended				Six months ended
	June 30,				June 30,
	2022		2021		2022		2021
Product revenues	$	—	$	53,865	$	3,438	$	614,301
Service revenues		—		96,129		—		519,878
Total revenues		—		149,994		3,438		1,134,179
Cost of sales		—		286,663		—		1,127,555
Selling, general and administrative		—		177,947		(1,845)		329,833
Professional fees		—		4,202		—		4,801
Depreciation and amortization		—		4,259		—		8,519
Total costs and expenses		—		473,071		(1,845)		1,470,708
Income (loss) from discontinued operations	$	—	$	(323,077)	$	5,283	$	(336,529)

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 six months ended June 30, 2022 and 2021.

	Six months ended
	June 30,
	2022		2021
Accounts receivables	$	—	$	(75,268)
Prepaid expenses and other current assets		—		502,278
Depreciation and amortization		—		8,519
Capital expenditures		—		—
Accounts payable and accrued expenses		—		(135,305)
Customer deposits		—		(466,785)