Discontinued Operations

9 Months Ended

Sep. 30, 2020

I I U Inc | Stock Purchase Agreement

Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]

Discontinued Operations

Note 10. Discontinued Operations

On January 8, 2020, the Company entered into a Stock Purchase Agreement (“SPA”) with Craven pursuant to which the Company sold to Craven all of the issued and outstanding shares of IIU for $3,562,569.  The purchase price was paid by Craven through the cancellation of the $3,461,782 Craven Convertible Note plus forgiveness of $100,787 of accrued interest. The Company originally paid $4,969,586 of goodwill. As a result, goodwill was impaired by $1.65 million. The sale of IIU resulted in a gain of $16,428.  

The impact of this transaction is reflected as a discontinued operation in the consolidated financial statements. Pursuant to ASU 2014-08, the major classes of assets and liabilities of IIU were as follows:

	As of December 31, 2019
Major classes of assets
Cash	$   246,914
Related party receivable	27,738
Prepaid expenses	2,301
Total major classes of current assets – discontinued assets	276,953
Fixed assets, net	27,245
Total major classes of assets – discontinued assets	$   304,198
Accounts payable and accrued expenses	$   144,006
Note payable – short term	100,672
Other liabilities	21,153
Income taxes payable	14,226
Total major classes of current liabilities – discontinued liabilities	280,057
Debt	517,584
Total major classes of liabilities - discontinued liabilities	$   797,641

The operating results for IIU, Inc. have been presented in the accompanying consolidated financial statements of operations for the three and nine months ended September 30, 2020 and 2019 as discontinued operations are summarized below:

	Three Months Ended September 30, 2020	Three Months Ended September 30, 2019	Nine Months Ended September 30, 2020	Nine Months Ended September 30, 2019
Revenue	$              -	$      221,085	$              -	$       501,244
Total operating costs and expenses	-	101,068	-	428,445
Gain (Loss) from discontinued operations	-	120,017	-	72,799
Other expense, net	-	16,455	-	33,166
Gain on disposal of discontinued operations	-	-	16,428	-
Net gain (loss) from discontinued operations	$               -	$  103,562	$     16,428	$   39,633
Net cash provided by operating activities	$                -	$ (48,205)	$                -	65,624
Net cash (used in) provided by investing activities	-	(76,695)	(246,914)	(25,368)
Net cash used in financing activities	-	(18,418)		(56,304)