ENTERPRISE DIVERSIFIED, INC. This section is intended to provide readers of our financial statements information regarding our financial condition, results of operations, and items that management views as important. The following discussion and analysis should be read in conjunction with the Company's accompanying consolidated financial statements and accompanying notes as of and for the years endedDecember 31, 2020 and 2019. The discussion of results, causes, and trends should not be construed to imply any conclusion that such results or trends will necessarily continue in the future. Additionally, it should be noted that a uniform comparative analysis cannot be performed for all segments, as a segment's limited financial history or recent restructuring results in less comparable financial performance.
Summary of Financial Performance
Common stockholders' equity increased from$10,633,958 atDecember 31, 2019 , to$14,043,411 atDecember 31, 2020 . This change was primarily attributable to$3,267,052 of net income in the asset management operations segment,$467,824 of net income in the internet operations segment,$202,676 of net income in the real estate operations segment, and$165,186 of net income resulting from discontinued operations under the home services operations segment, and was partially offset by$823,334 of net loss in the other operations segment. Corporate expenses for the year endedDecember 31, 2020 , included in the net loss from other operations, totaled$966,862 . Total comprehensive net income for the year endedDecember 31, 2020 equaled$3,279,404 . 6 --------------------------------------------------------------------------------
Balance Sheet Analysis
This section provides an overview of changes in our assets, liabilities, and
equity and should be read together with our accompanying consolidated financial
statements, including the accompanying notes to the financial statements. The
table below provides a balance sheet summary for the periods presented and is
designed to provide an overview of the balance sheet changes from quarter to
quarter.
December 31, September 30, December 31,
2020 2020 June 30, 2020 March 31, 2020 2019
ASSETS
Cash and equivalents $ 341,007 $ 337,149 $ 425,985 $ 553,468 $ 666,810
Accounts receivables, net 144,791 49,824 28,394 35,298 52,889Investments, at fair value 13,574,462 11,135,580 9,586,178
8,354,270 10,126,204
Real estate, total 241,876 378,698 383,128 376,499 479,425
Goodwill and other assets 555,044 524,772 545,407 548,725 574,316
Total assets $ 14,857,180 $ 12,426,023 $ 10,969,092 $ 9,868,260 $ 11,899,644
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable $ 65,524 $ 63,573 $ 77,670 $ 188,732 $ 157,934
Accrued expenses 306,063 176,904 119,839 124,255 198,374
Deferred revenue 192,088 213,498 210,671 201,430 204,960
Notes payable and other
liabilities 250,094 646,791 666,608 561,004 704,418
Total liabilities 813,769 1,100,766 1,074,788 1,075,421 1,265,686
Total stockholders' equity 14,043,411 11,325,257 9,894,304
8,792,839 10,633,958
Total liabilities and
stockholders' equity
Financial Condition, Liquidity, and Capital Resources
During 2020,Enterprise Diversified carried out its business strategy in four operating segments: Asset Management Operations, Real Estate Operations, Internet Operations, and Other Operations. During periods prior to the quarter endedJune 30, 2019 , the Company also operated through a fifth reportable segment, Home Services Operations. However, as of the year endedDecember 31, 2020 , and for all prior periods presented, home services operations are reported as discontinued operations. Our primary focus is on generating cash flow so that we have the flexibility to pursue opportunities as they present themselves. We will only invest cash in each segment if we believe that the return on this invested capital is appropriate for the risk associated with the investment. This consideration is measured against all investment opportunities available to us and is not limited to these particular segments or the Company's historical operations. Cash and equivalents totaled$341,007 at the year endedDecember 31, 2020 , compared to$666,810 at year-endDecember 31, 2019 . Real estate held for investment decreased to$241,876 at the year endedDecember 31, 2020 , compared to$380,515 at year-endDecember 31, 2019 , and real estate held for resale decreased to$0 at the year endedDecember 31, 2020 , compared to$98,910 at year-endDecember 31, 2019 . Total notes payable also decreased to$250,094 at the year endedDecember 31, 2020 , from$511,025 at year-endDecember 31, 2019 . The decreases in real estate and notes payable are primarily due to the opportunistic sales of certainEDI Real Estate rental properties. The Company does not expect to make significant reinvestments into property and equipment used in operating activities at this time.
The Company currently believes that our existing balances of cash, cash equivalents, and cash generated from operations will be sufficient to satisfy our currently anticipated cash requirements through at least the next 12 months.
The aging of accounts receivable as ofDecember 31, 2020 , andDecember 31, 2019 , is as shown: December 31, 2020 December 31, 2019 Current $ 142,121 $ 50,909 30 - 60 days 1,836 1,495 60 + days 834 485 Total $ 144,791 $ 52,889
We have no material capital expenditure requirements.
During the quarterly period endedJune 30, 2020 , the Company received loan proceeds in the amount of$125,102 under the Paycheck Protection Program, as amended (the "PPP"), administered by theU.S. Small Business Administration . The PPP, established as part of theU.S. Coronavirus Aid, Relief, and Economic Security Act of 2020 (the "CARES Act"), generally provided for economic assistance in the way of loans to qualifying business for amounts up to two-and-a-half times the average monthly payroll expenses of the qualifying business. Under the PPP, amounts of loan principal and accrued interest were eligible for forgiveness after a period, as selected by the borrower, of either eight or twenty-four weeks, provided the borrower used the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintained its payroll levels. The amount of loan forgiveness was subject to reduction if the borrower terminated employees or reduced salaries during the selected time period. The Company applied for and was granted loan forgiveness by theSmall Business Administration for the full value of its PPP loan inDecember 2020 . The principal value of the loan, along with accrued interest, has been recognized as other income on the accompanying consolidated statements of operations for the year endedDecember 31, 2020 . During the quarter endedSeptember 30, 2017 ,EDI Real Estate, LLC , as a borrower, issued two promissory notes, each secured by a property held for investment. These notes carry annual interest rates of 6%, pay interest quarterly, and are dueSeptember 15, 2022 , with early payoff permitted. DuringJanuary 2020 , one of these notes was paid off. Additionally, during the quarter endedSeptember 30, 2018 ,EDI Real Estate, LLC issued a promissory note secured by additional properties held for investment. This note carries an annual interest rate of 5.6% and fully matures onSeptember 1, 2033 , with early payoff permitted. The interest rate on this note is subject to change once each five-year period based on an index rate plus a margin of 2.750 percentage points. The index rate is calculated as a monthly average yield onU.S. Treasury Securities , adjusted to a constant maturity of five years. 7 --------------------------------------------------------------------------------
Notes payable as of
Interest Rates Average Term 2020 2019
Interest-bearing amount due on
promissory note through EDI Real Estate ,
LLC 5.60% 15 years $ 154,094 $ 373,425
Interest-bearing amount due on real
estate held for investment through EDI
Real Estate, LLC 6.00% 5 years 96,000 137,600
Less current portion (5,609 ) (11,453 )
Long-term portion $ 244,485 $ 499,572 The timing of future payments of notes payable are as follows:
2021$ 5,609 2022 101,507 2023 5,828 2024 6,145 2025 and thereafter 131,005 Total$ 250,094
Off-Balance Sheet Arrangements
We were not a party to any material off-balance sheet arrangements as of
Other Contractual Obligations
In 2016, the Company made a strategic determination to fund a seed investment, throughWillow Oak , to assist in the launch ofAlluvial Fund, LP , a private investment fund that was launched onJanuary 1, 2017 by an unaffiliated sponsor and general partner,Alluvial Capital Management, LLC . The Company had determined thatWillow Oak's support ofAlluvial Capital Management, LLC and its direct investment inAlluvial Fund were both beneficial and necessary undertakings in conjunction with establishing an asset management operations business and gaining credibility within that industry. As ofDecember 31, 2020 ,Willow Oak continues to hold its remaining direct investment inAlluvial Fund . Investment gains and losses are reported as revenue on the accompanying consolidated statements of operations. Also through the asset management operations segment, an operating lease on office space inNew York City commenced onOctober 1, 2017 , and extended throughSeptember 30, 2020 . OnOctober 1, 2020 , the Company renewed this lease on a month-to-month basis at a reduced rate for limited access given the state of theNew York City rental market as a result of the COVID-19 pandemic. Through the former home services operations segment, an operating lease on warehouse and office space inScottsdale, Arizona , commenced onMay 1, 2018 . This lease would have extended throughMay 31, 2021 . This lease was not conveyed with the divestiture onMay 24, 2019 .Specialty Contracting Group, LLC (formerly known asHVAC Value Fund, LLC ) was the lessee party to the lease. However,Specialty Contracting Group , in connection with its dissolution and winding up, surrendered possession of the premises to the landlord, in default of this lease. As ofDecember 31, 2020 , the remaining balance of the lease liability has been written off as the likelihood for any future collection is remote. This reduction in liability is included as income from discontinued operations on the accompanying consolidated statements of operations for the year endedDecember 31, 2020 . As has been previously reported, onJune 27, 2019 , the Company sold 65% of its membership interest inMt Melrose, LLC to an unaffiliated third-party purchaser,Woodmont Lexington, LLC ("Woodmont"). Under the terms of the parties' membership interest purchase agreement, the Company agreed to indemnify Woodmont against any losses actually incurred as a result of breaches of the Company's representations and warranties made under the agreement. To date, Woodmont has made several claims for indemnification under the agreement, all of which have been rejected and disputed by the Company. Also, in connection with the transaction, the Company and Woodmont entered into a certain Amended and Restated Limited Liability Company Agreement ofMt Melrose, LLC (the "A&R LLC Agreement"). The A&R LLC Agreement sets forth the general terms and conditions governing the arrangements between the two members. The A&R LLC Agreement provides that the business and affairs of Mt Melrose will be managed exclusively by one or more managers; and Woodmont is designated as the sole manager. In addition, the Company expressly agreed to a three-year "standstill" arrangement, during which time the Company will not in any way participate, directly or indirectly, in the management or control of Mt Melrose; and with respect to any matters requiring a vote of the members, the Company will vote with (i.e., the same as) Woodmont. Subsequent to the transaction, Woodmont, as the manager of MtMelrose , has purported that the Company's membership interest in Mt Melrose has been diluted to 20.8%. The Company disputes this assertion and maintains that it has retained its 35% membership interest.
Discussion Regarding COVID-19 Potential Impacts
Due to the continuing uncertainty surrounding the COVID-19 pandemic, the Company has experienced, and continues to expect, market volatility as primarily related to its investment in theAlluvial Fund . As reported in prior periods, this volatility can create periods when the asset management operations segment produces negative revenue amounts. Due to the size of the investment, these negative revenue amounts can also have a sizable impact on the Company's balance sheets at a given point-in-time. The nature of this investment has inherent market risks, and short-term results can be unpredictable. Thus far, such periods of volatility have not had significant short-term cash flow impacts to the Company; however, due to the Company's relative size, there is an inherent lack of affordable, short-term lending options in the event of an unexpected negative cash flow situation. As previously mentioned, during the quarterly period endedJune 30, 2020 , the Company received loan proceeds in the amount of$125,102 under the Paycheck Protection Program.The Small Business Administration determined that companies of our size generally were less likely to have access to adequate sources of liquidity in the current economic environment, and because of this, established a safe harbor whereby borrowers that received PPP loans with an original principal amount of less than$2 million were deemed to have made the required certification concerning the necessity of the loan request in good faith. Management continues to monitor and assess all Company operations for additional potential impacts of the COVID-19 pandemic. As of the year endedDecember 31, 2020 , the Company has not been forced to make significant operational changes as a result of the pandemic. Management does not anticipate additional challenges in meeting existing obligations, nor do we expect significant customer or vendor interruptions. However, the extent to which the continuing COVID-19 pandemic ultimately may impact our business, financial condition, liquidity and results of operations likely will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the continuing pandemic, the direct and indirect impact of the continuing pandemic on our employees, customers and service providers, as well as theU.S. economy, and the actions taken by governmental authorities and other third parties in response to the continuing pandemic. 8 --------------------------------------------------------------------------------
Results of Operations Asset Management Operations The Company operates its asset management operations business through its wholly-owned subsidiaries,Willow Oak Asset Management, LLC ("Willow Oak"),Willow Oak Capital Management, LLC ,Willow Oak Asset Management Affiliate Management Services, LLC ("Willow Oak AMS") andWillow Oak Asset Management Fund Management Services, LLC ("Willow Oak FMS"). These subsidiaries were formed onOctober 10, 2016 ,May 24, 2018 , andAugust 21, 2020 , respectively. During the segment's first year of operations, Willow Oak entered into three fee share agreements with multiple private investment partnerships and made an additional investment through another partnership arrangement. During the year endedDecember 31, 2018 , two new partnerships were formed, multiple fee share agreements were entered into, and a new service offering, Fund Management Services, was launched. During the year endedDecember 31, 2019 , one new joint venture was formed in whichWillow Oak Capital Management is a non-managing beneficial owner. During the year endedDecember 31, 2020 , we assisted in the launch of a new private investment fund, and two new wholly-owned entities, Willow Oak AMS and Willow Oak FMS, were formed to advance strategic relationships with external investment firms. Additionally, Willow Oak formalized a new strategic relationship with an investment firm, becoming a non-managing beneficial owner in exchange for the provision of certain ongoing FMS and operational services. As ofDecember 31, 2020 , Willow Oak continues to hold a direct investment in theAlluvial Fund, LP . The realized and unrealized investment gains and losses are reported as revenue on the accompanying consolidated statements of operations. This treatment can result in reporting negative revenue figures for a given period. Willow Oak continues to earn revenue through the remaining fee share arrangements, as well as through fund management services. During the year endedDecember 31, 2020 , the asset management operations segment produced$3,690,473 of revenue. Cost of revenue was$0 and operating expenses totaled$425,704 . Other income attributable to the asset management operations segment totaled$2,283 . Net income for the year endedDecember 31, 2020 , totaled$3,267,052 . This compares to the year endedDecember 31, 2019 , when the asset management operations segment produced$1,773,276 of revenue, cost of revenue was$0 , and operating expenses totaled$410,226 . Additionally, other income for the year endedDecember 31, 2019 , was$36,565 , and total net income for the year endedDecember 31, 2019 , was$1,399,615 . The increase in revenue in 2020 is due to market volatility and increased returns through the Company's Alluvial investment along with an increase in fee share revenues from the new service and affiliate relationships. The slight increase in operating expenses is primarily due to higher payroll expenses as the segment expands its fund management services offerings. Other income for the segment is primarily due to sub-lease rental income earned through the Company'sNew York office space. As ofDecember 31, 2020 , the fair value of long-term investments held through the asset management operations segment totaled$13,520,616 . This compares to the fair value of long-term investments held atDecember 31, 2019 , which totaled$10,072,358 . The increase in investments is attributable to positiveAlluvial Fund performance during the year endedDecember 31, 2020 . Management notes that, while short-term market volatility can have a significant effect on reported revenue for a given period, the Company's overall investment strategy is ultra-long-term focused.
The tables below provide a summary of income statement amounts over time. These figures are specific to the asset management operations segment and are presented for the annual and quarterly periods designated below.
Year Ended December Year Ended December
Annual 31, 2020 31, 2019
Revenues $ 3,690,473 $ 1,773,276
Cost of revenue - -
Operating expenses 425,704 410,226
Other income (expense) 2,283 36,565
Comprehensive income (loss) $ 3,267,052 $ 1,399,615
Year Ended December Year Ended December
Asset Management Operations Revenue 31, 2020 31, 2019
Unrealized gains on investment activity $ 3,424,267 $ 1,607,644
Management and performance fee revenue 176,598
65,171
Fund management services revenue 89,608 100,461
Total revenue $ 3,690,473 $ 1,773,276
December 31, September
Quarterly 2020 30, 2020 June 30, 2020 March 31, 2020
Revenues $ 2,559,658 $ 1,607,150 $ 1,268,819 $ (1,745,154 )
Cost of revenue - - - -
Operating expenses 102,353 120,368 93,742 109,241
Other income (expense) - - - 2,283
Comprehensive income (loss)
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--------------------------------------------------------------------------------Real Estate Operations EDI Real Estate Operations For the year endedDecember 31, 2020 , theEDI Real Estate operations generated revenue of$578,313 , which includes rental revenue of$59,313 , and the cost of revenues of$326,636 , which includes$43,726 of cost of rental revenues. Operating expenses for the year endedDecember 31, 2020 , were$31,937 and other expenses totaled$17,064 . Net income forEDI Real Estate operations for the year endedDecember 31, 2020 , totaled$202,676 . This compares to the year endedDecember 31, 2019 , whenEDI Real Estate operations generated revenue of$171,792 , including rental revenue of$76,792 , cost of revenues of$209,410 , including cost of rental revenues of$104,279 , operating expenses of$42,080 , other expenses of$75,359 , and a total net loss of$155,057 . Other expenses incurred during the years endedDecember 31, 2020 and 2019, were primarily interest-related expenses. Significant deferred maintenance expenses incurred in the prior year did not recur, which resulted in a current year decrease in the cost of rental revenue.
For the year ended
During the year endedDecember 31, 2020 , four properties held for resale were sold for gross proceeds of$519,000 . Net proceeds totaled$229,209 . This compares to their carrying value of$232,744 , which resulted in net gains of$286,256 being recognized on the sales. This compares to the year endedDecember 31, 2019 , when one property held for resale was sold for gross proceeds of$95,000 and net proceeds totaled$84,869 . This compared to its carrying value of$95,000 , which resulted in no gain or loss being recognized on the sale during the year endedDecember 31, 2019 . No properties were purchased during the years endedDecember 31, 2020 or 2019. No impairment adjustments were recorded during the year endedDecember 31, 2020 . During the year endedDecember 31, 2019 , net impairment adjustments of$26,170 were recorded on real estate held for resale throughEDI Real Estate, LLC in order to properly reflect market value throughout the year.
Through
EDI Real Estate December 31, 2020 December 31, 2019 Units occupied or available for rent 4
6
Vacant lots held for investment 3
-
Total units held for investment 7 6 Units held for resale - 2 Vacant lots held for resale - 3 Total units held for resale - 5
Units held for investment consist of single-family residential rental units.
The leases in effect, as of
EDI Real Estate December 31, 2020 December 31, 2019 Total real estate held for investment $ 303,158 $
484,590
Accumulated depreciation (61,282 ) (104,075 ) Real estate held for investment, net 241,876
380,515
Real estate held for resale, net $ - $ 98,910 Mt Melrose Operations As described in Note 4, management previously determined that the Company no longer has a controlling financial interest in Mt Melrose. All activity prior to the deconsolidation event was included on our consolidated statements of operations for given prior reporting periods under the real estate segment. No Mt Melrose activity is included on the consolidated statements of operations for the year endedDecember 31, 2020 . For the year endedDecember 31, 2019, Mt Melrose activity is only included throughJune 27, 2019 , the date of the majority sale of the Company's membership interest. As ofJune 27, 2019 , all previously consolidated assets and liabilities ofMt Melrose, LLC have been removed from our consolidated balance sheets. Accordingly, there are no consolidated Mt Melrose assets as of the years endedDecember 31, 2020 and 2019 included on the accompanying consolidated balance sheets. For the year endedDecember 31, 2019 , the Mt Melrose portfolio generated rental revenue of$365,971 . The cost of rental revenue totaled$276,049 . Operating expenses for the year endedDecember 31, 2019 , were$295,945 . Other expenses totaled$4,580,940 and the net loss for the year endedDecember 31, 2019 , totaled$4,786,963 . Other expenses for the year endedDecember 31, 2019 are primarily related to the loss recognized on the equity sale of the Mt Melrose entity mentioned previously, which totaled$4,157,809 .
During the year ended
10
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During the year ended December 31, 2019, Mt Melrose sold nineteen residential
properties and five vacant lots for gross proceeds of $775,850 . Net proceeds
totaled $151,672 . This compares to their carrying value of $755,918 , which
resulted in a net gain of $16,932 . No purchases were made during the year ended
December 31, 2019 .
During the year ended December 31, 2019 , an impairment adjustment of $126,827
was recorded on a commercial warehouse held for resale in order to properly
reflect market value at that time. Later in the year, the commercial warehouse
was sold for gross proceeds of $850,000 . Net proceeds after closing costs and a
promissory note payoff were $487,944 , which resulted in a loss on the sale in
the amount of $56,467 . This loss is included in other expenses under the real
estate segment for the year ended December 31, 2019 .
Effective on June 27, 2019 , the end of the consolidation period, the Company
recognized a loss on the partial sale of Mt Melrose in the amount of $4,157,809 ,
which has been reported separately on the accompanying consolidated statements
of operations under the real estate segment for the year ended December 31,
2019 . The amount of the loss is based upon the value of the Company's remaining
interest in the subsidiary, less the Company's previous carrying value of the
subsidiary.
For the years ended December 31, 2020 and 2019, the Company's remaining
investment in Mt Melrose is carried on our consolidated balance sheets as
$53,846 . This carrying value is reflective of the mechanics of the June 27,
2019 transaction, rather than management's perceived value of the Company's
remaining interest. By way of the Mt Melrose transaction, the Company was able
to significantly reduce direct and overhead expenses, improve net cash flows,
and fully deconsolidate approximately $6.4 million of debt. Additionally, the
Company was afforded the opportunity to refocus growth opportunities to its
asset management operations segment. These circumstances, rather than the cash
consideration received, are what strategically prompted the majority sale of the
Mt Melrose entity. Additional debt restructurings and sales of previously
inactive real estate properties have allowed the portfolio to continue its
redirection, which management believes will provide long-term returns greater
than its current carrying value.
The tables below provide a summary of income statement amounts over time. These
figures are specific to the real estate segment as a whole and are presented for
the annual and quarterly periods designated below. Revenue and expenses related
to the Mt Melrose portfolio of properties are included through the consolidation
period, which ended on June 27, 2019 upon the Company's majority equity sale of
the entity.
Year Ended December Year Ended December
Annual 31, 2020 31, 2019
Revenues $ 578,313 $ 537,763
Cost of revenue 326,636 485,459
Operating expenses 31,937 338,025
Other income (expense) (17,064 ) (4,712,766 )
Comprehensive income (loss) $ 202,676 $ (4,998,487 )
December 31, September 30,
Quarterly 2020 2020 June 30, 2020 March 31, 2020
Revenues $ 358,541 $ 16,129 $ 16,494 $ 187,149
Cost of revenue 175,156 12,157 7,114 132,209
Operating expenses 8,286 5,940 1,075 16,636
Other income (expense) (3,610 ) (5,456 ) (6,730 ) (1,268 )
Comprehensive income (loss)
1,575 $ 37,036
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Internet Operations Revenue attributed to the internet operations segment during the year endedDecember 31, 2020 , totaled$978,946 and cost of revenue totaled$321,582 . Operating expenses for the segment totaled$193,791 for the year endedDecember 31, 2020 , and other income totaled$4,251 . Net income for the internet segment was$467,824 for the year endedDecember 31, 2020 . This compares to the year endedDecember 31, 2019 , when revenue totaled$1,066,229 , cost of revenues totaled$330,654 , operating expenses were$223,118 , other income was$10,169 , and comprehensive income was$519,572 . Included in the segment's comprehensive income for the year endedDecember 31, 2019 , was an accumulated other comprehensive loss related to the recognition of foreign currency translation adjustments. Other income for the years endedDecember 31, 2020 and 2019, is primarily the result of refundable sales tax credits and credit card rewards. As ofDecember 31, 2020 , we have a total of 7,009 customer accounts across theU.S. andCanada . This compares to the year endedDecember 31, 2019 , when we had a total of 7,466 customer accounts. As ofDecember 31, 2020 , approximately 60% of our internet segment revenue is driven by internet access services, with the remaining 40% being earned though web hosting and other web-based storage services.
Approximately 92% of our customer accounts are
The tables below provide a summary of income statement amounts over time. These
figures are specific to the internet operations segment and are presented for
the annual and quarterly periods designated below.
Year Ended December Year Ended December
Annual 31, 2020 31, 2019
Revenues $ 978,946 $ 1,066,229
Cost of revenue 321,582 330,654
Operating expenses 193,791 223,118
Other income (expense) 4,251 10,169
Other comprehensive income (loss) - (3,054 )
Comprehensive income (loss) $ 467,824 $ 519,572
December 31, September 30,
Quarterly 2020 2020 June 30, 2020 March 31, 2020
Revenues $ 237,935 $ 242,237 $ 245,215 $ 253,559
Cost of revenue 69,753 85,412 79,229 87,188
Operating expenses 50,270 49,239 46,434 47,848
Other income (expense) 351 777 2,753 370
Comprehensive income (loss)
122,305$ 118,893
Discontinued Operations - Home Services Operations
As noted previously,Specialty Contracting Group, LLC's historical operations are now classified as "discontinued operations" in our consolidated financial statements, and all presented prior periods have also been reclassified to discontinued operations for comparability. Net income reported from discontinued operations related to the home services operations segment for the year endedDecember 31, 2020 was$165,186 . Included in this amount is$147,113 of extinguished debt from expired historical obligations. Also included in net income is a$20,484 loss recovery on discontinued operations that represents royalties earned in accordance with the Rooter Hero royalty arrangement mentioned previously. This compares to the net loss of$1,510,475 reported from discontinued operations related to the home services operations segment for the year endedDecember 31, 2019 . 12
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Other Operations The Company's other operations segment did not produce any revenue or cost of goods sold during the year endedDecember 31, 2020 . Operating expenses totaled$966,862 and other income was$143,528 for the year endedDecember 31, 2020 . Included in other income for the other operations segment is$125,839 of debt extinguishment as a result of the forgiveness of the Company's PPP loan. Corporate operating expenses accounted for the full$966,862 of reported operating expenses. This resulted in a net loss of$823,334 for the other operations segment for the year endedDecember 31, 2020 . This compares to the year endedDecember 31, 2019 , when our other operations segment produced$212,631 of revenue and no cost of goods sold. Operating expenses totaled$1,101,098 and other income was$96,551 for the year endedDecember 31, 2019 . The other income was primarily related to a realized gain on the sale of Triad Guaranty, Inc. stock. Corporate operating expenses accounted for the full$1,101,098 of reported operating expenses for our other operations. This resulted in a net loss of$791,916 for our other operations segment for the year endedDecember 31, 2019 . Corporate expenses were lower for the year endedDecember 31, 2020 primarily due to a decrease in accounting fees, legal fees, and payroll allocations but were offset by an increase in director fees, which are non-cash. The tables below provide a summary of income statement amounts over time. These figures are specific to other business segments, including corporate and various other investments, and are presented for the annual and quarterly periods designated below. Year Ended December Year Ended December Annual 31, 2020 31, 2019 Revenues $ - $ 212,631 Cost of revenue - - Operating expenses 966,862 1,101,098 Other income (expense) 143,528 96,551 Comprehensive income (loss) $ (823,334 ) $ (791,916 ) December 31, September Quarterly 2020 30, 2020 June 30, 2020 March 31, 2020 Revenues $ - $ - $ - $ - Cost of revenue - - - - Operating expenses 307,873 165,165 204,391 289,433 Other income (expense) 129,546 6,540 3,750 3,692
Comprehensive income (loss)
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