Discontinued Operations

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 3 – Discontinued Operations

On September 30, 2019, the Company entered into an Asset Purchase Agreement with Surge Holdings, Inc., a Nevada corporation (“SURG”) pursuant to which the Company agreed to sell and assign to SURG all the assets and certain specified liabilities of its ECS Prepaid, Electronic Check Services and the Central State Legal Services businesses in consideration of $5,000,000 to be paid through the issuance of 3,333,333 shares of SURG’s common stock and a convertible promissory note in favor of the Company in the principal amount of $4,000,000. The 3,333,333 shares of SURG’s common stock have been pledged to a third party for providing working capital needs of the Company (See Note 8).

The ECS Prepaid, Electronic Check Services and the Central State Legal Services businesses have been presented as discontinued operations on the accompanying financial statements.

The operating results for ECS Prepaid, Electronic Check Services and the Central State Legal Services have been presented in the accompanying consolidated statement of operations for the three months ended March 31, 2020 and 2019 as discontinued operations and are summarized below:

	Three Months Ended March 31,
	2020		2019
Revenue	$	-	$	8,801,308
Cost of revenue		-		8,645,869
Gross Profit		-		155,439
Operating expenses		-		342,762
Loss from operations		-		(187,323	)
Other income (expenses)		-		(3	)
Net loss	$	-	$	(187,326	)

As a result of this transaction, the Company recognized a gain on the disposition of discontinued operations of $1,381,803 during the third quarter of 2019.