NOTE 7: DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

Discontinued Operations

During May 2019, the Company decided to discontinue most of its operating activities pursuant to the Asset Purchase Agreement entered into with CAKE Software, Inc. (see Note 1).

In accordance with the provisions of ASC 205-20, the Company has separately reported the assets and liabilities of the discontinued operations in the consolidated balance sheets. The assets and liabilities have been reflected as discontinued operations in the consolidated balance sheets as of December 31, 2023 and 2022, and consist of the following:

In accordance with the provisions of ASC 205-20, the Company has excluded the results of discontinued operations from its results of continuing operations in the accompanying consolidated statements of operations.  There were no results of operations pertaining to discontinued operations for the years ended December 31, 2023 and 2022.

Assets Held for Sale

As of December 31, 2022, the Company determined that its property and equipment in Wray, Colorado (via CFN Real Estate II) were to be listed for sale.  Accordingly, the Company reported the disposal group of the long-lived assets at its lower of the carrying value or the fair value less cost to sell.

The assets and liabilities have been reflected as discontinued operations in the consolidated balance sheet as of December 31, 2022, and consist of the following:

On April 12, 2023, the Company sold its property, including the machinery and equipment, at Wray, Colorado for $699,000 and received net proceeds of $608,300 after selling expenses.  Accordingly, the Company recorded a gain on disposal of $9,253.

In connection with the sale, the Company repaid $525,000, including $500,000 in principal and $25,000 in accrued interest, on CFN Real Estate II’s related note payable with Physician Strategic, resulting in a gain on extinguishment of debt of $13,219.

As of December 31, 2023 and 2022, the assets held for sale balance was $0 and $599,047, respectively.