Quarterly report pursuant to Section 13 or 15(d)

ABANDONMENT OF SUBSIDIARY

ABANDONMENT OF SUBSIDIARY

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

NOTE 17 – ABANDONMENT OF SUBSIDIARY

On September 1, 2021, the Company’s board of directors, by unanimous consent, adopted a resolution to abandon the Company’s wholly owned subsidiary, REGS, LLC. The abandonment resulted in a gain to the Company of approximately $1.5 million for both the three-month period and the nine-month period ended September 30, 2021. For the three and nine months ended September 30, 2021 and 2020, all operations from REGS have been reported as discontinued operations.

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


	For the three months ended						For the nine months ended
	September 30,						September 30,
	2021			2020			2021			2020

Services revenue	$	-		$	142,300		$	177,200		$	171,400

Services costs		(55,800	)		(192,600	)		(314,900	)		(368,400	)
General and administrative expenses		(22,900	)		(26,200	)		(40,800	)		(79,900	)
Salaries and related expenses		(51,200	)		(72,500	)		(150,800	)		(254,100	)
Other income (expense)		145,200			12,400			210,800			186,200
Gain on debt extinguishment		410,600			-			410,600			-
Total expenses		425,900			(278,900	)		114,900			(516,200	)

Operating income (loss)		425,900			(136,600	)		292,100			(344,800	)
Income tax benefit		-			-			-			-

Total income (loss) from discontinued operations	$	425,900		$	(136,600	)	$	292,100		$	(344,800	)

The net assets and liabilities disposed of, resulting in the gain on the abandonment, are summarized in the following table:

	Three and Nine Months Ended
	September 30, 2021
Assets, net		(18,900	)
Liabilities - Other, net including intercompany assets		391,500
IRS payroll tax liability		1,085,400
Gain on abandonment		1,458,000