Annual report pursuant to Section 13 and 15(d)

ABANDONMENT OF SUBSIDIARY (Tables)

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ABANDONMENT OF SUBSIDIARY (Tables)
12 Months Ended
Dec. 31, 2021
Abandonment Of Subsidiary  
SCHEDULE OF CONSTITUTING BALANCE SHEET AND PRETAX INCOME (LOSS) ON DISCONTINUED OPERATIONS

Major classes of line items constituting the balance sheet on discontinued operations:

 

    September 3,     December 31,  
    2021     2020  
             
ASSETS                
Cash and cash equivalents   $ -       500  
Inventory     -       88,800  
Prepaid expenses and other current assets     -       14,500  
Property and equipment, net     -       700  
Right of use assets     -       30,600  
Other assets     18,900       9,900  
TOTAL ASSETS   $ 18,900     $ 145,000  
                 
LIABILITIES                
Accounts payable   $ 169,100       267,500  
Accrued liabilities     220,800       227,700  
Payroll taxes payable     1,076,800       1,085,400  
Customer deposits     10,200       10,200  
Paycheck protection program liabilities     -       337,500  
Current portion of lease liabilities     -       31,000  
Accrued interest - related party     -       1,800  
TOTAL LIABILITIES   $ 1,476,900     $ 1,961,100  

 

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

 

             
    For the years ended  
    December 31,  
    2021     2020  
             
Services revenue   $ 177,200     $ 171,400  
                 
Services costs     (314,900 )     (423,700 )
General and administrative expenses     (40,800 )     (102,300 )
Salaries and related expenses     (150,800 )     (328,600 )
Other income     210,800       253,400  
Gain on debt extinguishment     410,600       -  
Total expenses     114,900       (601,200 )
                 
Operating income (loss)     292,100       (429,800 )
Income tax benefit     -       -  
                 
Total income (loss) from discontinued operations   $ 292,100     $ (429,800 )
SCHEDULE OF NET ASSETS AND LIABILITIES DISPOSED OF RESULTING IN THE GAIN ON THE ABANDONMENT

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

 

    Year Ended  
    December 31, 2021  
Assets, net     (18,900 )
Liabilities - Other, net including intercompany assets     400,100  
IRS payroll tax liability     1,076,800  
Gain on abandonment     1,458,000