Sale of property

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Sale of property

5. Sale of property

On April 2, 2019, the Company entered into a Commercial Contract with a third party whereby the real property at 801 Andrews Avenue, Delray Beach, Florida, consisting of land and condominiums thereon, was sold for $3,500,000. This transaction closed on April 26, 2019.

The loss realized on the disposal was calculated as follows:

	Amount
Proceeds received	$	4,975,174
Less: closing costs		(182,344	)
Provision for additional expenses		(36,470	)
Net proceeds received		4,756,360
Assets sold:
Land		2,753,928
Buildings thereon, net of depreciation		2,949,452
Furniture and fixtures, net of depreciation		72,792
		5,776,172
Loss on disposal of property	$	1,019,812

On October 10, 2019, in terms of a deed of transfer the Company disposed of the remaining property located at 810 Andrews Avenue, Delray Beach, Florida to a convertible note holder in partial settlement of the convertible note outstanding for net proceeds of $1,475,174. Subsequent to year end an additional $36,470 of expenses related to the property disposal were incurred, these expenses were provided for at year end.