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Discontinued Operations

12 Months Ended

Dec. 31, 2024

Discontinued Operations [Abstract]

Discontinued Operations

3. Discontinued Operations

During the year ended December 31, 2024, the Transferred Assets met the criteria for classification as assets held for sale and discontinued operations as the Company received stockholder approval of the sale of its Transferred Assets at its special meeting of stockholders held on December 30, 2024. Accordingly, the assets and liabilities related to the Transferred Assets are presented as discontinued operations for all periods presented. Subsequent to year end, on January 2, 2025, the Company completed the Divestiture as described above and received cash proceeds of $1.35 million.

The following table summarizes the operating results of the Transferred Assets for the periods indicated:

		For the Year Ended December 31,
		2024				2023
Revenue
Subscription revenue		$	7,582,654			$	9,684,668
Advertising revenue			400,595				333,144
Total Revenue			7,983,249				10,017,812
Costs and expenses
Cost of revenue			2,948,854				2,953,351
Sales and marketing expense			697,400				786,718
Product development expense			4,620,406				4,650,375
General and administrative expense			186,746				--
Impairment loss in connection with Divestiture			3,663,020				--
Total Costs and Expenses			12,116,426				8,390,444
(Loss) Income from discontinued operations			(4,133,177	)			1,627,368
Income tax liability			(24,357	)			(7,695	)
Net (loss) income from discontinued operations		$	(4,157,534	)		$	1,619,673

Furthermore, in connection with the Divestiture, the Company evaluated the held for sale disposal group for impairment as follows:

		December 31, 2024
Estimated proceeds from sale of Transferred Assets, net of $283K of expenses		$	1,067,031
Net carrying value of the disposal group			(4,916,796	)
Impairment loss on held for sale assets		$	(3,849,765	)

The Company allocated the impairment loss in connection with the assets held for sale to goodwill.

The following table summarizes the assets and liabilities of the Transferred Assets included in the consolidated balance sheets for the periods indicated, after recognition of the impairments described above and are included as assets and liabilities attributed to discontinued operations:

		As of December 31,
		2024				2023
Assets
Accounts receivable, net		$	72,925			$	92,704
Prepaids and other current assets			--				246,124
Total current assets			72,925				338,828
Goodwill			2,663,229				6,326,250
Total Assets - discontinued operations		$	2,736,154			$	6,665,078
Liabilities
Accounts payable		$	311,506			$	692,746
Accrued expenses			116,532				172,697
Deferred revenue			1,596,199				1,498,920
Total Liabilities - discontinued operations		$	2,024,237			$	2,364,363

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- References

No definition available.

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- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/205-20/tableOfContent

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 360
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/360/tableOfContent

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