Note 3 - Newco4pharmacy Transaction

12 Months Ended

Dec. 31, 2016

Note 3 – Newco4pharmacy Transaction

On December 9, 2015, Trunity Holdings, Inc. acquired 100% of the membership interests of Newco4pharmacy, LLC. The consideration paid was the issuance of a newly created Series X Preferred stock which was exchanged on December 31, 2015 for 10,000,000 shares of the Company’s common stock. The $106,900 fair value of the preferred stock issued and common stock exchanged approximated the fair value of the assets acquired from Newco4pharmacy, LLC which consisted of cash. Acquisition costs were nominal pertaining to the transaction.

On December 31, 2015, the Company completed the restructuring and spin-out of software educational business, resulting in True Nature Holding, Inc. becoming purely focused on acquiring a series of businesses which specialize in compounding pharmacy activities, largely direct to consumers, doctors and veterinary professionals. The results of the operations associated with the Spin-Out company and Trunity Holdings, Inc., qualifies as discontinued operations.

The results of operations associated with discontinued operations were as follows:


	For the Year ending December 31, 2015
Net Sales		$ 464,786
Cost of sales		220,228
Gross Profit		244,558

Operating Expenses:
Research and development		734,985
Selling, general and administrative		938,799
Total operating expenses		1,673,784

Operating Loss from Discontinued Operations		(1,429,226)

Other Expense:
Interest expense, net		(775,564)
Disposal on fixed assets		—
Gain (Loss) on debt extinguishment		1,867,428

Net Loss from Discontinued Operations		$ (337,362)

Other Comprehensive Gain Net of Tax:
Foreign currency translation adjustments		24,815
Comprehensive Loss from Discontinued Operations		$ (312,547)