ANNUAL INTEGRATED REPORT 2021 slide image

ANNUAL INTEGRATED REPORT 2021

159 ANNUAL INTEGRATED REPORT 2021 | AXTEL 22 = years. Dividends paid from previously taxed profits are not subject to tax withholding or additional tax payments. As of December 31, 2021, the tax value of the CUFIN and tax value of the Capital Contribution Account (CUCA from Spanish) amounted to $1,302,234 and $27,692,963, respectively. In case of capital reduction, the procedures established by the Income Tax Law provide that any surplus of stockholders' equity be given over the balances of the fiscal accounts of the capital contributed, the same tax treatment applicable to dividends. DISCONTINUED OPERATIONS Revenues Cost of sales Gross profit Administration and selling expenses Operating loss Loss before taxes Income taxes Loss net income. Gain on sale of the discontinued operation Income from discontinued operations, net of income taxes 2019 $ 302,367 (263,283) 39,084 (317,567) (278,483) (278,483) 83,545 (194,938) 519,016 $ 324,078 As of the date of the transaction held in 2019, the gain on sale of discontinued operations for $519,016, net of taxes, was determined by comparing the sale price of $1,150,000, less the net assets sold, transaction costs and tax effects for a total of $630,984. Condensed information regarding the cash flows of the discontinued operation for the period ended May 1, 2019: Masive Segment Disposition On May 1, 2019, the Company entered into a final agreement for the divestiture of the last phase of its fiber optic business (FTTX) from the massive segment located in León, Puebla, Toluca, Guadalajara and Querétaro in the amount of $1,150 million pesos to Megacable Holdings, S. A. B. de C. V. and subsidiaries ("Megacable"). Axtel transferred to Megacable 55 thousand residential customers and micro-businesses, 1,370 km of fiber network and other assets related to the operation of the massive segment in these cities. Condensed information related to the consolidated statement of income of the discontinued operation for the period ended May 1, 2019: 23 Cash flows from operating activities Cash flows from investment activities REVENUES a. Income for services: Voice Hosting 2019 $ (29,633) 1,150,000 2021 2020 $1,023,919 $ 1,283,749 2019 $ 1,873,716 Managed networks 3,598,641 4,074,645 4,056,632 Internet data 4,553,229 4,551,367 4,419,477 Administrative applications 222,787 305,967 360,404 359,020 518,727 740,579 System integration 686,741 770,191 557,797 Security 506,289 464,395 410,300 Cloud services 335,385 298,565 269,069 Other services 103,483 88,375 95,659 Total $11,389,494 $12,355,981 $12,783,633
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