Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v3.7.0.1
Discontinued Operations
 12 Months Ended
Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

4. DISCONTINUED OPERATIONS

 

On November 29, 2016, the Company’s Board of Directors determined that it was in the Company’s best interest to close down CAP and the Company ceased is broker-dealer operations December 31, 2016. On February 21, 2017, the Company’s request to FINRA for Broker-Dealer Withdrawal (“BDW”) became effective.

 

Results of Discontinued Operations

 

Summarized operating results of discontinued operations are presented in the following table:

 

   

For The Years Ended

December 31,

  
    2016     2015  
Revenues   $ 12,192     $ 141,460  
Gross profit   $ 12,192     $ 141,460  
Operating expenses   $ (2,254,551 )   $ (1,991,049 )
Interest income, net   $ 81     $ 185  
Loss from discontinued operations   $ (2,242,278 )   $ (1,849,404 )

 

Revenues from discontinued operations includes non-cash warrant revenues from affiliates of $22,972 and $63,546, as well as unrealized losses on affiliate warrants of $92,824 and $184,530 for the years ended December 31, 2016 and 2015, respectively.

 

Operating expenses from discontinued operations includes non-cash warrant and stock compensation totaling, in the aggregate, $284,092 and $403,159 for the years ended December 31, 2016 and 2015, respectively.

 

Summarized assets and liabilities of discontinued operations are presented in the following table:

 

    December 31,  
    2016     2015  
Related party receivable   $ 155,420     $ 96,792  
Advances and loans to registered representatives, net of allowance of $513,520 and $118,000 at December 31, 2016 and 2015, respectively     -       189,612  
Forgivable loans receivable     -       233,190  
Prepaid expenses and other current assets     52,734       105,449  
Prepaid commissions, net of allowance of $0 and $57,000 at December 31, 2016 and 2015, respectively     -       143,387  
Total current assets of discontinued operations   $ 208,154     $ 768,430  
                 
Accounts payable and accrued expenses   $ 44,104     $ 56,796  
Total current liabilities of discontinued operations   $ 44,104     $ 56,796