| Schedule of Discontinued Operation of Balance Sheet and Operation Statement |
Carrying amounts of major classes of
assets and liabilities classified as held for sale and included as part of discontinued operations in the condensed consolidated
balance sheets consisted of the following:
| |
|
September 30, 2017 |
|
|
December 31, 2016 |
|
| |
|
(unaudited) |
|
|
(unaudited) |
|
| Cash |
|
$ |
8,690 |
|
|
$ |
2,962 |
|
| Accounts receivable, net |
|
|
6,503 |
|
|
|
267,681 |
|
| Prepaid expenses and other current assets |
|
|
53,582 |
|
|
|
67,257 |
|
| Current assets classified as held for sale |
|
$ |
68,775 |
|
|
$ |
337,900 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
$ |
- |
|
|
$ |
53,012 |
|
| Goodwill |
|
|
914,972 |
|
|
|
- |
|
| Deposits |
|
|
13,750 |
|
|
|
23,750 |
|
| Non-current assets classified as held for sale |
|
$ |
928,722 |
|
|
$ |
76,762 |
|
| |
|
|
|
|
|
|
|
|
| Accounts payable (includes related parties) |
|
$ |
837,989 |
|
|
$ |
422,864 |
|
| Accrued expenses |
|
|
253,991 |
|
|
|
1,253,117 |
|
| Current portion of notes payable |
|
|
276,632 |
|
|
|
- |
|
| Current liabilities classified as held for sale |
|
$ |
1,368,612 |
|
|
$ |
1,675,981 |
|
| |
|
|
|
|
|
|
|
|
| Non-current liabilities classified as held for sale |
|
$ |
- |
|
|
$ |
26,598 |
|
Major line items constituting loss from
discontinued operations in the consolidated statements of operations for the nine months ended September 30, 2017 and 2016 consisted
of the following:
| |
|
September 30, 2017 |
|
|
September 30, 2016 |
|
| |
|
|
(unaudited) |
|
|
|
(unaudited) |
|
| Revenue from services |
|
$ |
224,224 |
|
|
$ |
1,154,967 |
|
| Cost of services |
|
|
9,282 |
|
|
|
162,266 |
|
| Gross profit |
|
|
214,942 |
|
|
|
992,701 |
|
| Operating expenses |
|
|
1,225,638 |
|
|
|
4,073,873 |
|
| Other income (expenses) |
|
|
42,775 |
|
|
|
(253,142 |
) |
| Loss from discontinued operations |
|
$ |
(1,053,471 |
) |
|
$ |
(2,828,030 |
) |
|
| Schedule of Fair Value of Acquired Assets and Liabilities Acquisition |
The Company has one year to revalue
goodwill and other intangible assets in accordance with GAAP per ASC 850-10-25-14.
| Cash |
|
$ |
7,990 |
|
| Accounts receivable, net |
|
|
6,503 |
|
| Accounts payable and accrued expenses |
|
|
(458,736 |
) |
| Deferred revenue |
|
|
(20,000 |
) |
| Loans payable short-term |
|
|
(142,514 |
) |
| Note payable long-term |
|
|
(134,118 |
) |
| Total identifiable net liabilities |
|
|
(740,875 |
) |
| Goodwill |
|
|
914,972 |
|
| Total consideration |
|
$ |
174,097 |
|
|
| Schedule of Pro Forma Information |
These unaudited pro forma statements
have been prepared for comparative purposes only and are not intended to be indicative of what our results would have been had
the acquisition occurred at the beginning of the periods presented or the results which may occur in the future.
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
(unaudited) |
|
|
(unaudited) |
|
| |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
| Net Revenue |
|
$ |
1,439,151 |
|
|
$ |
122,432 |
|
|
$ |
3,460,125 |
|
|
$ |
4,251,890 |
|
| Loss from discontinued operations |
|
|
(475,065 |
) |
|
|
452,083 |
|
|
|
(1,070,620 |
) |
|
|
(1,871,057 |
) |
| Net loss |
|
|
(10,930,151 |
) |
|
|
(10,770,201 |
) |
|
|
(31,189,252 |
) |
|
|
(21,158,568 |
) |
| Deemed dividend from triggher of down |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| round provision feature |
|
|
(2,280,280 |
) |
|
|
- |
|
|
|
(53,341,619 |
) |
|
|
- |
|
| Net loss to common shareholders |
|
$ |
(13,210,431 |
) |
|
$ |
(10,770,201 |
) |
|
$ |
(84,530,871 |
) |
|
$ |
(21,158,568 |
) |
| Loss per share basic and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss per share – discontinued operations |
|
$ |
(0.40 |
) |
|
$ |
(4.92 |
) |
|
$ |
(1.57 |
) |
|
$ |
(35.71 |
) |
| Net loss per common share |
|
$ |
(10.99 |
) |
|
$ |
(117.32 |
) |
|
$ |
(123.69 |
) |
|
$ |
(403.88 |
) |
|