DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

12 Months Ended

Dec. 31, 2019

Notes To Financial Statements Abstract

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

NOTE 16 – DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

On January 1, 2019, Reign Brands, Inc., a subsidiary of Reign Resources Corporation, entered into an Asset Purchase Agreement (the “Agreement”) with Co-Op Jewelers LLC (“Co-Op”), whereby Reign Brands, Inc. sold operating assets of Reign Brands, Inc., consisting of substantially all of the assets related to Coordinates Collection (“CC”). On January 1, 2019 (the “Closing Date”), the parties executed the Asset Purchase Agreement and the final exhibits.

Upon the closing of the Agreement, Reign Brands, Inc. sold substantially all of the operating assets of the CC business, consisting of fixed assets and intellectual property in exchange for an aggregate of $100,000 in cash. The Agreement contained customary closing conditions.

The following table reconciles the gain realized from the disposal of discontinued operations:

	January 1, 2019
Cash	$	100,000
Intangible assets, net		481,947
Goodwill		(481,947	)
Estimated fair value of contingent payments, net		137,007
Other current liabilities		1,308
Gain on disposal of discontinued operations	$	238,315

As a result of the pending sale, the Company has reclassified CCI as assets and liabilities held for sale as of December 31, 2018. Discontinued operations during the year ended December 31, 2018 consist of the operations from CCI.

The following tables lists the assets of discontinued operations and held for sale and liabilities of discontinued operations and held for sale as of December 31, 2018 and the discontinued operations for CCI for the year ended December 31, 2018:

	December 31, 2018
Assets
Current assets
Account receivable	$	2,096
Total current Assets of discontinued operations		2,096
Property ,plant and equipment,net		—
TOTAL ASSETS OF DISCONTINUED OPERATIONS AND HELD FOR SALE	$	2,096
LIABILITIES
LIABILITIES
Current liabilities
Accounts Payable	$	—
Estimated fair value of contingent payment,net		137,007
Deferred revenue		21,977
Other current liabilities		3,994
Total Current liabilities of discontinued operations		162,978
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS AND HELD FOR SALE	$	162,978

	For the Year Ended
	December 31, 2018
Net revenue	$	659,142
Cost of sales		227,157
Gross profit		431,985
Operating expenses
Advertising and marketing expenses		317,666
Stock based compensation related party		—
General and administrative		429,316
Total operating expenses		746,982
Net loss of discontinued operations and held for sale	$	(314,997	)