DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2021

DISCONTINUED OPERATIONS.

DISCONTINUED OPERATIONS

NOTE 3. DISCONTINUED OPERATIONS

On July 16, 2021, we entered into an Asset Purchase Agreement with an individual to sell substantially all of the assets of NBC for a total of $150,000 and 10% of profits generated by the buyer in the states of Michigan, Mississippi, and Massachusetts for a period of twelve months from the closing. On August 2, 2021, the sale of NBC was completed. The condensed consolidated balance sheets include 2019 discontinued operations cash balances of $5,101 and $5,551 as of September 30, 2021 and December 31, 2020, respectively, and accounts payable balances of $53,128 and $54,641 as of September 30, 2021 and December 31, 2020, respectively. The below table does not include the 2019 discontinued operations.

Assets and liabilities of discontinued operations for the Operations Segment included the following:

	September 30,		December 31,
	2021		2020
Accounts receivable, net	$	3,821	$	187,185
Prepaid expenses and other current assets		—		519,274
Current assets discontinued operations		3,821		706,459
Property and equipment, net		—		43,697
Noncurrent assets discontinued operations		—		43,697
Accounts payable and accrued expenses		21,235		169,492
Customer deposits		40,000		517,931
Current liabilities discontinued operations	$	61,235	$	687,423

A summary of the discontinued operations for the Operations Segment is presented as follows:

	Three months ended				Nine months ended
	September 30,				September 30,
	2021		2020		2021		2020
Product revenues	$	463	$	632,623	$	614,764	$	3,099,113
Service revenues		4,116		132,873		523,994		495,623
Total revenues		4,579		765,496		1,138,758		3,594,736
Cost of sales		29,480		685,885		1,157,035		3,140,326
Selling, general and administrative		12,721		205,363		342,554		658,720
Professional fees		143		10,300		4,944		15,970
Depreciation and amortization		2,840		3,921		11,359		11,590
Total costs and expenses		45,184		905,469		1,515,892		3,826,606
Loss from discontinued operations	$	(40,605)	$	(139,973)	$	(377,134)	$	(231,870)

The condensed consolidated statement of operations include 2019 discontinued operations gain of $69,005 and loss of $78,620 for the three and nine months ended September 30, 2020, respectively, and are not reflected in the above table.

The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows. The following table provides selected information on cash flows related to discontinued operations for the Operations Segment for the nine months ended September 30, 2021 and 2020.

	Nine months ended
	September 30,
	2021		2020
Accounts receivables	$	183,364	$	(18,344)
Prepaid expenses and other current assets		519,274		83,168
Depreciation and amortization		11,359		11,590
Capital expenditures		—		(6,696)
Accounts payable and accrued expenses		(148,257)		(12,394)
Customer deposits		(477,931)		(259,862)