4. Discontinued Operations

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

4. Discontinued Operations

4 Discontinued Operations 

Subsequent to year end, on February 14, 2017, GreeneStone completed a series of transactions (referred to collectively as the “Restructuring Transactions”), including a share purchase agreement (the “SPA”) whereby GreeneStone acquired the stock of the company holding the Muskoka Healthcare Clinic real estate, an asset purchase agreement (the “APA”) and lease (the “Lease”) whereby the Company sold all of the Muskoka clinic business assets and leased the clinic building to the buyer, and a real estate purchase agreement and asset purchase agreement whereby the Company purchased the real estate and business assets of Seastone Delray (the “Florida Purchase”).

The Muskoka clinic business represented substantially all of the operating assets of the Company and has been disclosed as a discontinued operation for the years ended December 31, 2016 and 2015.  

The assets and liabilities of discontinued operations as of December 31, 2016 and 2015, respectively is as follows:

	December 31, 2016	December 31, 2015
Current assets
Accounts receivable, net	$         123,358	$         183,583
Prepaid expenses and other current assets	11,253	15,489
Total current assets	134,611	199,072
Non-current assets
Plant and equipment, net	129,127	193,131
Deposits	-	8,217
Total assets	263,738	400,420
Current liabilities
Deferred revenues	80,519	181,075
Discontinued operation	183,219	219,345

Income from discontinued operations is as follows:

	Year ended December 31, 2016	Year ended December 31, 2015
Revenues	$      3,653,399	$      3,138,878
Operating expenses
Depreciation and amortization	63,391	90,862
General and administrative	751,553	734,559
Management fees	-	(447)
Professional fees	(3,889)	48,765
Rent	385,401	383,163
Salaries and wages	1,592,444	1,752,327
Total operating expenses	2,788,900	3,009,229
Operating income	864,499	129,649
Other Income (expense)
Other income	720	-
Other expense	(617)	(30,616)
Interest expense	(154,605)	(172,524)
Foreign exchange movements	25,990	(86,728)
Net income (loss) before taxation	735,987	(160,219)
Taxation	-	-
Net income (loss) from discontinued operations	$         735,987	$       (160,219)