Discontinued Operations

9 Months Ended

Sep. 30, 2023

Discontinued Operations

Discontinued Operations

Note 2 – Discontinued Operations

On February 18, 2022, the Company, effective March 1, 2022 entered into a Revenue Sharing Agreement (“RSA”) with Mahaser LTD. (“Mahaser”) pursuant to which the Company shares in revenues generated by Mahaser e-commerce sales through the online retail platform in the United States of America. Mahaser owns an e-commerce platform as a store which is the legal, exclusive owner of Ravenholm Electronics. The Company will operate the e-commerce platform and entitled to 95% for all revenue generated by and received by Mahaser from March 1, 2022 through December 31, 2022. The RSA provides that the Company will be entitled to appoint a manager to Mahaser. As consideration, the Company will pay Mahaser $100,000 no later than March 1, 2022 and issue Mahaser 1,000,000 shares of the Company’s restricted common stock. Effective July 1, 2023, the Company agreed to terminate the RSA with Mahaser Ltd.

The following table presents the aggregate carrying amounts of assets and liabilities of discontinued operations of Mahaser Ltd. in the consolidated balance sheet as of September 30, 2023:

Carrying amounts of assets included as part of discontinued operations:
Cash and cash equivalents	$	41,077
Accounts receivable, net		35,536
Inventory		12,860
Other current assets		452
Total assets classified as discontinued operations in the consolidated balance sheet	$	89,925
Carrying amounts of liabilities included as part of discontinued operations:
Accounts payable and accrued expenses	$	77,947
Notes payable, noncurrent		91,332
Total liabilities classified as discontinued operations in the consolidated balance sheet	$	169,279

The financial results of Mahaser Ltd. are present as income from discontinued operations, net of income taxes on our consolidated income through September 30, 2023, when our deconsolidation occurred. The following table presents the financial results of Mahaser:

	Period ended September 30,
	2023		2022
Revenues	$	349,204	$	771,446
Cost of revenue		324,918		530,003
Gross profit		24,286		241,443
Operating expense
Professional expenses		20,039		6,925
General and administrative expenses		42,605		199,818
Total operating expense		62,644		206,743
Loss from operations of discontinued operations		(38,358)		34,701
Other expense
Other income		10		2
Nonoperating expense - interest expense and financing		37		127
Total other expense		47		129
Loss from discontinued operations before provision for income taxes		(38,405)		34,572
Provision for income taxes		—		—
Loss from discontinued operations, net of income taxes	$	(38,405)	$	34,572