DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

4 DISCONTINUED OPERATIONS

On August 5, 2019, the Company entered into a Stock Purchase Agreement (“SPA”) with Vivi Holdings, Inc., a Delaware corporation (“Vivi Holdings”), to sell Qpagos Corporation, a Delaware corporation (“QPAG Sub”), which operates the Company’s business in Mexico as the holding company for Qpagos, S.A.P.I. de C.V. and Redpag Electrónicos S.A.P.I. de C.V., to Vivi Holdings for 2,250,000 shares of common stock of Vivi Holdings (the “Stock Sale”) “), of which nine percent (9%) is to be allocated to Gaston Pereira (5%), Andrey Novikov (2.5%), Joseph Abrams (1.5%). Upon consummation of the Stock Sale, the Company will no longer have any business operations in Mexico. The Company will retain its U.S. operations based in Calabasas, California.

The following assets and liabilities are recorded as held for disposal:

	September 30,		December  31,
	2019		2018
Current Assets
Accounts receivable	$	9,953	$	60,523
Inventory		163,691		330,632
Recoverable IVA taxes and credits		117,594		98,493
Other current assets		59,569		169,564
Total current assets		350,807		659,212
Non-current assets
Plant and equipment, net		189,301		228,103
Right of use asset		8,459		-
Intangibles, net		50,167		82,417
Investment		3,000		3,000
Other assets		12,282		10,373
Total non-current assets		263,209		323,893
Assets held for sale	$	614,016	$	983,105
Current liabilities
Accounts payable	$	82,641	$	40,136
Operating lease liability		8,492		-
ICA and other taxes payable		9,979		18,969
Advances from clients		152,528		120,909
Liabilities held for sale	$	253,640	$	180,014

The statement of operations from discontinued operations is as follows:

	Three months ended			Three months ended			Nine months ended			Nine months ended
	September 30,			September 30,			September 30,			September 30,
	2019			2018			2019			2018
Net Revenue	$	3,480,878		$	1,944,466		$	7,550,475		$	5,111,017
Cost of Goods Sold		3,767,192			1,931,715			7,748,178			5,049,774
Gross (loss) profit		(286,314	)		12,751			(197,703	)		61,243
General and administrative		278,960			281,974			832,623			898,814
Depreciation and amortization		11,276			12,488			33,885			37,241
Total Expense		290,236			294,462			866,508			936,055
Loss from Operations		(576,550	)		(281,711	)		(1,064,211	)		(874,812	)
Other (expense) income		(866	)		783			1,007			(935	)
Foreign currency (loss) gain		(15,436	)		116,944			(21,412	)		106,581
Loss before taxation		(592,852	)		(163,984	)		(1,084,616	)		(769,166	)
Taxation		-			-			-			-
Loss from discontinued operations, net of taxation	$	(592,852	)	$	(163,984	)	$	(1,084,616	)	$	(769,166	)