Disposal of Investment in Frictionless and Beyond Fintech

6 Months Ended

Jun. 30, 2023

Disposal of Investment in Frictionless and Beyond Fintech [Abstract]

DISPOSAL OF INVESTMENT IN FRICTIONLESS AND BEYOND FINTECH

4 DISPOSAL OF INVESTMENT IN FRICTIONLESS AND BEYOND FINTECH

On May 12, 2023, the Company entered into the May 2023 Frictionless Agreement to unwind the equity ownership stakes that the Company and Frictionless have in each other and in Beyond Fintech. Pursuant to the May 2023 Frictionless Agreement: (i) the Company assigned to Frictionless all common stock of Frictionless owned by the Company (representing a 10% ownership interest in Frictionless); (ii) the warrant to purchase 30,000,000 shares of Common Stock previously issued by the Company to Frictionless as of December 30, 2022 was cancelled; (iii) the Company assigned to Frictionless all shares of common stock of Beyond Fintech owned by the Company (representing a 51% ownership interest in Beyond Fintech) (the “Beyond Fintech Shares”); and (iv) the rights previously granted to the Company to (a) acquire additional equity interests in Frictionless, (b) participate in future financings of Frictionless and (c) appoint a board member of Frictionless were terminated. The consideration to the Company for the assignment of the Beyond Fintech Shares to Frictionless is $250,000, which will be paid by Frictionless exclusively in the form of 20% credits against invoices for work done by Frictionless for the Company for the 18 month period following the closing under the existing software services between the Company and Frictionless. The May 2023 Frictionless Agreement has customary representations, indemnification and mutual release provisions. The closing of the transactions contemplated by the May 2023 Frictionless Agreement occurred on May 12, 2023.

The assets and liabilities disposed of were as follows:

	Amount
Assets
Current Assets
Cash	$	339
Non-current assets
Intangible assets		327,211
Security deposit		15,000
Investment		500,000
		842,211
Total assets		842,550
Liabilities
Current Liabilities
Accounts payable		97,126
Net assets sold		745,424
Proceeds due on disposal		(250,000	)
Net loss on disposal	$	495,424