Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v3.20.4
Discontinued Operations
12 Months Ended
Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

Note 6 – Discontinued Operations

 

The Company conducted a strategic review of the screening and testing products business. Following such review, in early July 2020, the Company ceased the production and sale of its rapid, point-of-care screening and testing products. The Company had been experiencing declining sales revenue and production backlogs for these products and, as it previously reported, had eliminated its sales force for such products.

 

The assets and liabilities of the discontinued operations have been reflected in the Consolidated Balance Sheet as of December 31, 2020 and consist of the following:

 

    As of  
    December 31,  
    2020  
Current Assets:        
Prepaid Expenses   $ 12,002  
Total Assets   $ 12,002  
         
Current Liabilities:        
Trade and Other Payables of Discontinued Operations   $ 59,393  
Total Current Liabilities     59,393  
Non-Current Liabilities     -  
Total Liabilities   $ 59,393  
         
Shareholders’ Equity   $ -  
         
Total Liabilities and Shareholders’ Equity   $ 59,393  

 

The results from the discontinued operations have been reflected in the Consolidated Statement of Comprehensive Loss for the year ended December 31, 2020 and consist of the following:

 

    For the  
    Year  
    Ended  
    December 31,  
    2020  
Product Revenue   $ 361,827  
Product Cost of Sales     (659,405 )
Gross Loss     (297,578 )
         
Research and Development Expenses     2,788  
Administrative Expenses     417,730  
Sales and Marketing Expenses     51,311  
Regulatory and Compliance Expenses     197,312  
Litigation Settlement Expenses     3,981,131  
Amortization of Non-Current Assets     17,601  
Impairment of Prepaid Royalties     291,442  
Impairment of Production Equipment     18,680  
Impairment of Intangible Assets     152,822  
         
Loss from Discontinued Operations   $ (5,428,395 )

 

As a result of the discontinued operations, the previously presented 2019 financial statements have been revised to present the consolidated financial statements of the continuing operations separate from the discontinued operations. The effects on the Consolidated Balance Sheet as of December 31, 2019 were as follows:

 

    December 31, 2019  
    As previously              
    Reported     Adjustment     As Revised  
ASSETS                  
Current Assets                        
Cash   $ 517,444     $ -     $ 517,444  
Marketable Securities     9,164,273       -       9,164,273  
Accounts Receivable, net     42,881       42,881       -  
Deposits and Other Receivables     -       -       -  
Inventories, net     198,985       198,985       -  
Prepaid Expenses     387,231       53,172       334,059  
Current Assets – discontinued operations     -       (295,038 )     295,038  
Total Current Assets     10,310,814       -       10,310,814  
                         
Non-Current Assets                        
Prepaid Expenses, net of current     252,308       252,308       -  
Restricted Cash     115,094       -       115,094  
Plant, Property and Equipment, net     33,574       33,574       -  
Intangible assets, net     170,423       170,423       -  
Other assets     2,722       -       2,722  
Non-current Assets – discontinued operations             (456,305 )     456,305  
Total Non-Current Assets     574,121       -       574,121  
                         
Total Assets   $ 10,884,935     $ -     $ 10,884,935  
                         
LIABILITIES                        
Current Liabilities                        
Trade and Other Payables     1,529,765       637,882       891,883  
Current Liabilities – discontinued operations     -       (637,882 )     637,882  
Total Current Liabilities     1,529,765       -       1,529,765  
                         
Total Liabilities     1,529,765       -       1,529,765  
                         
Commitments and Contingencies                        
                         
SHAREHOLDERS’ EQUITY                        
Preferred Stock, No par value, 50,000,000 total preferred shares authorized     -       -       -  
Common stock, No par value, 100,000,000 shares authorized 1,738,837 issued and outstanding as of December 31, 2019     128,920,414       -       128,920,414  
Accumulated Other Comprehensive Income     17,886       -       17,886  
Accumulated Deficit     (119,583,130 )     -       (119,583,130 )
Total Shareholders’ Equity     9,355,170       -       9,355,170  
                         
Total Liabilities and Shareholders’ Equity   $ 10,884,935     $ -     $ 10,884,935  

 

The effects on the Consolidated Statement of Comprehensive Loss for the year ended December 31, 2019 were as follows:

 

    For the Year Ended  
    December 31, 2019  
    As Previously Reported     Adjusted     As Revised  
Product Revenue   $ 1,577,033     $ 1,577,033     $ -  
Product Cost of Sales     (1,098,286 )     (1,098,286 )     -  
Gross Income     478,747       478,747       -  
                         
Research and Development Expenses     -       -       -  
Administrative Expenses     3,728,514       356,411       3,372,103  
Sales and Marketing Expenses     238,036       213,036       25,000  
Compliance and Regulatory Expenses     276,788       276,788       -  
Litigation Settlement Expenses     141,478       66,478       75,000  
Amortization of Non-Current Assets     40,008       40,008       -  
Impairment of Intangible Assets     32,980       32,980       -  
                         
Loss from Operations     (3,979,057 )     (506,954 )     (3,472,103 )
                         
Other (Income) Expense                        
Loss on Disposal of Non-Current Assets     9,576       -       9,576  
Foreign Currency Transaction (Gain) Loss     5,051       -       5,051  
Gain on Investments     (3,952 )     -       (3,952 )
Interest and Dividend Income     (101,483 )     -       (101,483 )
Total Other Income     (90,808 )     -       (90,808 )
                         
Loss from Continuing Operations     (3,888,249 )     -       (3,381,295 )
                         
Loss from Discontinued Operations     -       (506,954 )     (506,954 )
                         
Loss Before Income Taxes     (3,888,249 )     -       (3,888,249 )
                         
Income Tax Benefit     -       -       -  
                         
Net Loss     (3,888,249 )     -       (3,888,249 )
                         
Other Comprehensive Income                        
Net Unrealized Gain on Marketable Securities     43,799       -       43,799  
Total Other Comprehensive Income     43,799       -       43,799  
                         
Comprehensive Loss   $ (3,844,450 )     -     $ (3,844,450 )

 

The depreciation, amortization and significant operating noncash items of the discontinued operations were as follows:

 

    For the Year Ended  
    December 31,  
    2020     2019  
Depreciation and amortization   $ 29,452     $ 74,064  
Impairment of Prepaid Royalties     291,442       -  
Impairment of intangible assets     152,822       32,980  
Impairment of production equipment     18,680       -  
Inventory adjustment for net realizable value     197,723       -  
Reserve for obsolete inventory     -       371,997  
Share based compensation - shares issued to Chubeworkx     2,510,000       -  
    $ 3,200,119     $ 479,041