Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS

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DISCONTINUED OPERATIONS
 3 Months Ended
Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS

NOTE 9 – DISCONTINUED OPERATIONS

 

In March 2018, the Company approved the spin-off VoiceInterop into a separate company under a Form S-1 registration to be filed with the United States Securities and Exchange Commission.

 

On April 23, 2018, the board of Directors declared a stock dividend for certain shareholders of the Company. The Company distributed to its shareholders owning Common Stock and Series C and D Preferred stock an aggregate of 17,819,827 shares of shares of Common Stock of VoiceInterop. Each common shareholder received .075 shares of VoiceInterop common stock for each one (1) share of Cleartronic stock held by the shareholder, and each shareholder of Series C and D Preferred stock received 0.375 shares of VoiceInterop common stock for each one (1) share of Series C or Series D Preferred stock held by the shareholder.

 

On November 14, 2019, VoiceInterop, Inc.'s, S-1 Registration Statement was declared effective by Securities and Exchange Commission. On February 14, 2020, the distribution of shares was approved by FINRA and completed and deconsolidation was completed. The Company recorded $225,316 to additional paid in capital for deconsolidation of VoiceInterop, Inc. and discontinued operations are not presented.  

 

The following table illustrates the reporting of the discontinued operations included in the Condensed Consolidated Unaudited Statements of Operations for the three months ended December 31, 2019.

 

 

For the Three

Months Ended

December 31, 2019

(Unaudited)

Revenue

 $               13,143

Cost of Revenue

                    1,750

Gross Profit

                    11,393

 

 

Operating Expenses:

 

   Selling expenses

                     783

   Administrative expenses

                    20,947

   Professional Fees

                         8,558

   Total Operating Expenses

                   30,288

 

 

Loss from operations

                   (18,895)

 

 

Other Income (Expense)

 

Other Income

                    3,450

Interest and other expense

                    (7,981)

Total Other Income (Expense)

(4,531)

 

 

Loss Before Income Taxes

                   (23,426)

Provision for Income Taxes

                            -

Loss from discontinued operations

     $              (23,426)

 

 

Loan Payable - related party

 

During the years ended September 30, 2020, the Company owed $16,262 to two officers, of which $7,262 is included in liabilities from discontinued operations.  The loan is non-interest bearing and payable on demand.  As of September 30, 2020, the loan balance of $9,000 was paid in full and $7,626 included in liabilities from discontinued operations was deconsolidated as of February 14, 2020.    

 

Operating lease asset and liability

 

The Company leases its office space from VoiceInterop the Company's former wholly owned subsidiary and now 96% owned by our shareholders.  On February 14, 2020, VoiceInterop was deconsolidated and is no longer our subsidiary. Rent expense paid to the related party was $4,473 and $4,200 for the three months ended December 31, 2020 and 2019, respectively.

 

As of February 14, 2020, the operating lease liabilities of $66,114 and lease assets of $62,226 were included in liabilities from discontinued operations and were deconsolidated.