Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

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DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE
 3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

NOTE 15 – DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

 

On January 1, 2019, Reign Brands, Inc., a subsidiary of Reign Sapphire Corporation, entered into an Asset Purchase Agreement (the “Agreement”) with Co-Op Jewelers LLC (“Co-Op”), whereby Reign Brands, Inc. sold operating assets of Reign Brands, Inc., consisting of substantially all of the assets related to Coordinates Collection (“CC”). On January 1, 2019 (the “Closing Date”), the parties executed the Asset Purchase Agreement and the final exhibits.

 

Upon the closing of the Agreement, Reign Brands, Inc. sold substantially all of the operating assets of the CCI business, consisting of fixed assets and intellectual property in exchange for an aggregate of $100,000 in cash. The Agreement contained customary closing conditions.

 

As a result of the sale, the Company had reclassified CCI as assets and liabilities held for sale as of December 31, 2018. Discontinued operations during the three months ended March 31, 2018 consist of the operations from CCI.

 

The following tables lists the assets of discontinued operations and held for sale and liabilities of discontinued operations and held for sale as of December 31, 2018 and the discontinued operations for CCI for the three months ended March 31, 2018:

 

    December 31,  
    2018  
ASSETS      
Current Assets:        
Accounts Receivable   $ 2,096  
Total Current Assets of Discontinued Operations     2,096  
Property, Plant and Equipment, net     —  
TOTAL ASSETS OF DISCONTINUED OPERATIONS AND HELD FOR SALE   $ 2,096  
         
LIABILITIES        
         
LIABILITIES        
Current Liabilities:        
Accounts Payable   $ —  
Estimated fair value of contingent payments, net     137,007  
Deferred revenue     21,977  
Other current liabilities     3,994  
Total Current Liabilities of Discontinued Operations     162,978  
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS AND HELD FOR SALE   $ 162,978  

 

 

    For the Three  
    Months Ended  
    March 31,  
    2018  
       
Net revenues   $ 250,101  
Cost of sales     72,868  
Gross profit     177,233  
         
Operating expenses        
Advertising and marketing expenses     136,519  
Stock based compensation - related party     —  
General and administrative     167,863  
Total operating expenses     304,382  
         
Net loss of discontinued operations and held for sale   $ (127,149 )