Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

Discontinued Operations

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

NOTE 13 –DISCONTINUED OPERATIONS

2019 REGS services division

During the fourth quarter of 2019, the Company ceased bidding on, and accepting contracts for the services division of its REGS subsidiary. No contracts have been uncompleted; therefore, the division does not have any performance obligations at December 31, 2019. Fifteen employees in the division were terminated at December 31, 2019. The Company is investigating the sale of REGS services division assets as of December 31, 2019. Accordingly, the revenue and expenses associated with the services division are presented as “Discontinued operations” on our consolidated statement of operations and on our consolidated statement of cash flows for the three months ended March 31, 2020, and corresponding 2019 results were reclassified from the reporting classification in fiscal year 2019 for comparative purposes. For the three months ended March 31, 2020 and 2019 we recorded net loss from discontinued operations equal to $0 and $336,700, respectively.

Major classes of line items constituting pretax loss on discontinued operations:

	For the three months ended
	March 31,
	2020		2019

Services revenue	$	-	$	220,200

Services costs		-		(402,300	)
General and administrative expenses		-		(122,400	)
Salaries and related expenses		-		(104,500	)
Other income (expense)		-		72,300
Total expenses		-		(556,900	)

Operating income		-		(336,700	)
Income tax benefit		-		-
Total income from discontinued operations	$	-	$	(336,700	)