Discontinued Operations

12 Months Ended

Dec. 31, 2023

Discontinued Operations

Discontinued Operations

Note 3 – 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 December 31, 2022:

Carrying amounts of assets included as part of discontinued operations:
Cash and cash equivalents	$	93,581
Accounts receivable, net		25,244
Inventory		11,569
Total assets classified as discontinued operations in the consolidated balance sheet	$	130,394
Carrying amounts of liabilities included as part of discontinued operations:
Accounts payable and accrued expenses	$	136,734
Notes payable, noncurrent		34,628
Total liabilities classified as discontinued operations in the consolidated balance sheet	$	171,362

The financial results of Mahaser Ltd. are present as loss from discontinued operations, net of income taxes on our consolidated income through December 31, 2023 and 2022, when our deconsolidation occurred. The following table presents the financial results of Mahaser:

	Year ended December 31,
	2023			2022
Revenues	$	349,204		$	1,107,555
Cost of revenue		324,918			817,754
Gross profit		24,286			289,801
Operating expense
Professional expenses		20,039			28,635
General and administrative expenses		42,605			302,012
Total operating expense		62,644			330,647
Loss from operations of discontinued operations		(38,358	)		(40,846	)
Other expense
Other income		10			2
Nonoperating expense - interest expense and financing		37			127
Total other expense		27			132
Loss from discontinued operations before provision for income taxes		(38,385	)		(40,978	)
Provision for income taxes		—			—
Loss from discontinued operations, net of income taxes	$	(38,385	)	$	(40,978	)