DISCONTINUED OPERATIONS

9 Months Ended

Sep. 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.

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

	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Product revenues	$	—	$	463	$	3,438	$	614,764
Service revenues		—		4,116		—		523,994
Total revenues		—		4,579		3,438		1,138,758
Cost of sales		—		29,480		—		1,157,035
Selling, general and administrative		(195)		12,721		(2,040)		342,554
Professional fees		—		143		—		4,944
Depreciation and amortization		—		2,840		—		11,359
Total costs and expenses		(195)		45,184		(2,040)		1,515,892
Income (loss) from discontinued operations	$	195	$	(40,605)	$	5,478	$	(377,134)

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 nine months ended September 30, 2022 and 2021.

	Nine months ended
	September 30,
	2022		2021
Accounts receivables	$	—	$	183,364
Prepaid expenses and other current assets		—		519,274
Depreciation and amortization		—		231
Capital expenditures		—		—
Accounts payable and accrued expenses		—		—
Customer deposits		—		—