Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

Discontinued Operations

12 Months Ended

Dec. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

NOTE 15 –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 as of December 31, 2019. Fifteen employees in the division were terminated as of December 31, 2019. The Company is investigating the sale of REGS services division remaining assets as of December 31, 2020. 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 year ended December 31, 2019 results. For the years ended December 31, 2020 and 2019 we recorded net income from discontinued operations equal to $0 and $1,785,400, respectively.

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

	For the year ended
	December 31,
	2020		2019

Services revenue	$	-	$	1,661,500

Services costs		-		(2,481,400	)
General and administrative expenses		-		(502,400	)
Salaries and related expenses		-		(512,400	)
Other income (expense)		-		49,300
Total expenses		-		(3,446,900	)

Operating income		-		(1,785,400	)
Income tax benefit		-		-

Total income from discontinued operations	$	-	$	(1,785,400	)