DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 3: DISCONTINUED OPERATIONS

As discussed in Note 1, the Company sold Rohuma, Mimo and TSP in December 2022. As a result, these entities were deconsolidated from the Company’s financial statement resulting in a loss of $5,804,121. Additionally, the Company is shifting operations to waste management. As such, these business are reported as discontinued operations for the years ended December 31, 2022 and 2021. As required, the Company has retrospectively recast its consolidated statements of operations and balance sheets for all periods presented. The Company has not segregated the cash flows of this business in the consolidated statements of cash flows. Management was also required to make certain assumptions and apply judgment to determine historical expenses related to the discontinued operations presented in prior periods. Unless noted otherwise, discussion in the Notes to Consolidated Financial Statements refers to the Company’s continuing operations.

The following table presents a reconciliation of the major financial lines constituting the results of operations for discontinued operations to the net income (loss) from discontinued operations presented separately in the consolidated statement of operations for the year ended December 31, 2022:

	Rohuma			Mimo			TSP			Total
	December 31, 2022			December 31, 2022			December 31, 2022			December 31, 2022
REVENUE	$	396,320		$	220,388		$	1,042,266		$	1,658,975
COST OF REVENUE		248,198			558,215			524,230			1,330,643
GROSS PROFIT (LOSS)		148,122			(337,826	)		518,036			328,331
OPERATING EXPENSES
Salaries and salary related costs		419,371			-			74,560			493,932
Professional fees		9,337			66,089			25,429			100,855
Rent expense		1,882			-			40,794			42,676
Depreciation and amortization expense		2,818			44,502			28,860			76,180
(Loss) gain from disposal of subsidiaries		3,215,757			2,670,012			(81,648	)		5,804,121
General and administrative expenses		29,910			49,877			101,455			181,243
Total Operating Expenses		3,679,074			2,830,480			189,450			6,699,005
OPERATING (LOSS) INCOME		(3,530,953	)		(3,168,307	)		328,586			(6,370,673	)
OTHER INCOME (EXPENSE)
PPP forgiveness and other expense		325			(99,808	)		(213,731	)		(313,214	)
Interest expense, net of interest income		(8,247	)		(15,522	)		(49,868	)		(73,637	)
Total other income (expense)		(7,922	)		(115,330	)		(263,599	)		(386,581	)
NET (LOSS) INCOME FROM DISTCONTINUED OPERATIONS, BEFORE PROVISION FOR INCOME TAXES		(3,538,875	)		(3,283,637	)		64,987			(6,757,524	)
Provision for income taxes		6,876			-			5,313			12,189
NET (LOSS) INCOME FROM DISTCONTINUED OPERATIONS	$	(3,545,751	)	$	(3,283,637	)	$	59,675		$	(6,769,713	)

The following table presents a reconciliation of the major financial lines constituting the results of operations for discontinued operations to the net income (loss) from discontinued operations presented separately in the consolidated statement of operations for the year ended December 31, 2021:

	Rohuma			Mimo			TSP			Total
	December 31, 2021			December 31, 2021			December 31, 2021			December 31, 2021
REVENUE	$	632,065		$	215,467		$	1,864,768		$	2,712,300
COST OF REVENUE		426,928			416,342			1,360,501			2,203,771
GROSS PROFIT (LOSS)		205,137			(200,875	)		504,267			508,529
OPERATING EXPENSES
Salaries and salary related costs		331,150			55,150			65,251			451,551
Professional fees		6,155			72,809			25,665			104,629
Rent expense		1,303			-			28,600			29,903
Depreciation and amortization expense		3,842			32,456			8,670			44,968
General and administrative expenses		17,997			116,727			226,966			361,690
Total Operating Expenses		360,447			277,142			355,152			992,741
OPERATING (LOSS) INCOME		(153,310	)		(478,017	)		149,115			(484,212	)
OTHER INCOME (EXPENSE)
PPP forgiveness and other expense		882			-			-			882
Interest expense, net of interest income		(9,002	)		(2,880	)		(47,296	)		(59,178	)
Total other income (expense)		(8,120	)		(2,880	)		(47,296	)		(58,296	)
NET (LOSS) INCOME FROM DISTCONTINUED OPERATIONS, BEFORE PROVISION FOR INCOME TAXES		(163,430	)		(480,897	)		101,819			(542,508	)
Provision for income taxes		1,287			9,873			78,590			89,750
NET (LOSS) INCOME FROM DISTCONTINUED OPERATIONS	$	(164,717	)	$	(490,770	)	$	23,229		$	(632,258	)

The detail of the consolidated balance for the discontinued operations is as stated below for the year ended December 31, 2021:

	Rohuma		Mimo		TSP		Total
	December 31, 2021		December 31, 2021		December 31, 2021		December 31, 2021
Current Assets:
Cash	$	36,291	$	8,497	$	646	$	45,434
Accounts receivable, net		188,455		39,262		187,564		415,281
Prepaid expenses and other current assets		-		97,567		51,038		148,605
Current Assets – Discontinued Operations	$	224,746	$	145,326	$	239,248	$	609,320
Fixed assets, net	$	4,455	$	2,213	$	27,498	$	34,165
Intangible assets, net		-		795,623		411,343		1,206,966
Goodwill		3,519,869		2,343,189		-		5,863,058
Restricted cash		-		2,687		111,512		114,199
Deferred tax asset		-		-		116,111		116,111
Right-of-use asset		-		-		112,076		112,076
Long-term taxes receivable		-		-		122,136		122,136
Other assets		-		-		3,137		3,137
Other Assets – Discontinued Operations	$	3,524,324	$	3,143,712	$	903,813	$	7,571,849
Current Liabilities:
Accounts payable and accrued expenses	$	10,961	$	113,791	$	-	$	124,752
Cash overdraft		-		-		218,747		218,747
Accrued payroll and related taxes		25,077		125,745		261,322		412,144
Accrued taxes and duties payable		3,709		22,897		45,563		72,169
Deferred revenue		1,115		2,716		-		3,831
Current portion - lease liability		-		-		13,070		13,070
Current portion - long-term debt - related parties		973		82,101		8,828		91,902
Current portion - long-term debt		10,000		-		60,838		70,838
Current Liabilities – Discontinued Operations	$	51,835	$	347,249	$	608,368	$	1,007,453
Lease liability, net of current portion	$	-	$	-	$	109,830	$	109,830
Long-term Liabilities – Discontinued Operations	$	-	$	-	$	109,830	$	109,830

The following table presents a reconciliation of Rohuma, Mimo, and TSP net cash flow from operating, investing and financing activities for the periods indicated below:

	2022			2021
Net cash (used in) provided by operating activities - discontinued operations	$	(398,437	)	$	562,118
Net cash (used in) provided by investing activities - discontinued operations	$	(33,257	)	$	20,941
Net cash provided by (used in) financing activities - discontinued operations	$	272,061		$	(452,315	)