Sigyn Therapeutics, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

12 Months Ended

Dec. 31, 2018

DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

NOTE 16 – 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 (“CCI”). 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 pending sale, the Company has reclassified CCI as assets and liabilities held for sale as of December 31, 2018 and 2017 and restated December 31, 2017 financial information for comparable purposes. Discontinued operations during the years ended December 31, 2018 and 2017 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 2017 and the discontinued operations for CCI for the years ended December 31, 2018 and 2017:

	December 31,
	2018		2017
ASSETS
Current Assets:
Accounts Receivable	$	2,096	$	9,730
Total Current Assets of Discontinued Operations		2,096		9,730
Property, Plant and Equipment, net		—		1,106,736
TOTAL ASSETS OF DISCONTINUED OPERATIONS AND HELD FOR SALE	$	2,096	$	1,116,466

LIABILITIES

LIABILITIES
Current Liabilities:
Accounts Payable	$	—	$	121,442
Estimated fair value of contingent payments, net		137,007		287,957
Deferred revenue		21,977		81,455
Other current liabilities		3,994		7,781
Total Current Liabilities of Discontinued Operations		162,978		498,635
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS AND HELD FOR SALE	$	162,978	$	498,635

	For the Years Ended December 31,
	2018			2017

Net revenues	$	659,142		$	1,245,744
Cost of sales		227,157			490,951
Gross profit		431,985			754,793

Operating expenses
Advertising and marketing expenses		317,666			458,915
Stock based compensation - related party		—			248,250
General and administrative		429,316			453,595
Total operating expenses		746,982			1,160,760

Net loss of discontinued operations and held for sale	$	(314,997	)	$	(405,967	)