2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Discontinued Operations (Policies)

9 Months Ended

Sep. 30, 2021

Policies

Discontinued Operations

Discontinued Operations

On June 11, 2021, the Company entered into and closed an asset purchase agreement (the “Asset Purchase Agreement”) with Liquid Web, LLC (“Buyer”) under which it sold the web hosting and maintenance revenue stream (the “Asset Sale”) to the Buyer for a Purchase Price of $251,966 which included the “Indemnity Holdback” amount of $25,197.  The Buyer will pay the Company the “Indemnity Holdback” amount within 45 days following the six-month anniversary of the closing date (June 11, 2021) in accordance with the Asset Purchase Agreement.

The Company did not classify any assets or liabilities specific to the Purchased Assets.  Therefore, the purchase price from the Purchased Assets are recorded as a Gain on Sale of Discontinued Operations in our statement of operations for the quarter ended September 30, 2021.  As a result of the Company entering into the Asset Purchase Agreement, the Company’s web hosting revenue stream has been characterized as discontinued operations in its financial statements as disclosed within the disaggregated revenue schedule in footnote 3.

Pursuant to the Asset Purchase Agreement, the Company will continue to maintain, support, and deliver on all customer services during the transition period of 90 days following the Closing Date.  The Company will continue to invoice the hosting customers in the ordinary course of business.  Any payments received from the customers, on or after the Closing Date are the property of Liquid Web.  The Company will remit the payment for collected revenue less taxes collected and net of hosting expenses to the Buyer no later than the 15th day of the following month. As of September 30, 2021, the Company shows zero due to the buyer.

The following table summarizes the results of operations for the three months ended September 30, 2021 and 2020.

		Three months ended September 30, 2021 (unaudited)						Three months ended September 30, 2020 (unaudited)
		Third Parties		Related Parties		Total		Third Parties		Related Parties		Total
Hosting Revenue		1,598		-		1,598		78,449		-		78,449
Cost of Sales		(321)		-		(321)		34,216		-		34,216
Net Income from Discontinued Operations	$	1,919	$	-	$	1,919	$	44,233	$	-	$	44,233

  The following table summarizes the results of operations for the nine months ended September 30, 2021 and 2020. 

		Nine months ended September 30, 2021 (unaudited)						Nine months ended September 30, 2020 (unaudited)
		Third Parties		Related Parties		Total		Third Parties		Related Parties		Total
Hosting Revenue		129,934		-		129,934		256,943		-		256,943
Cost of Sales		56,320		-		56,320		96,516		-		96,516
Net Income from Discontinued Operations	$	73,614	$	-	$	73,614	$	160,427	$	-	$	160,427