Discontinued Operations

6 Months Ended

Jun. 30, 2024

Discontinued Operations [Abstract]

Discontinued Operations

Note 3 — Discontinued Operations

ASC 360, “Property, Plant, and Equipment” requires that a long-lived asset (disposal group) to be sold shall be classified as held for sale in the period in which a set of criteria have been met, including criteria that the sale of the asset (disposal group) is probable, and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. On January 29, 2024, the Company contributed nearly all of the assets of Ceautamed into First Health for a 49% ownership of First Health.

For comparability purposes, certain prior period line items relating to the assets held for sale have been reclassified and presented as discontinued operations for all periods presented in the accompanying consolidated statements of operations, consolidated statements of cash flows, and the consolidated balance sheets.

In accordance with ASC 205-20-S99, “Allocation of Interest to Discontinued Operations,” the Company elected to not allocate consolidated interest expense to discontinued operations where the debt is not directly attributable to or related to discontinued operations.

The following information presents the major classes of line item of assets and liabilities included as part of discontinued operations in the consolidated balance sheets as of June 30, 2024 and December 31, 2023:

		June 30, 2024				December 31, 2023
ASSETS
Current assets:
Cash		$	—			$	29,872
Accounts receivable, net			—				18,688
Inventory			—				89,997
Prepaid expenses and other current assets			—				6,500
Total current assets			—				145,057

Property and equipment, net			—				4,188
Intangible assets, net			—				3,765,962
Operating lease right-of-use assets			—				702,818
Total other assets			—				4,472,968
Total assets		$	—			$	4,618,025

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable		$	—			$	528,129
Accrued expenses			—				109,623
Contract liabilities			—				99,408
Lease liability, current			—				72,431
Debt, current, net of debt discounts			—				51,767
Total current liabilities			—				861,358

Long-term liabilities:
Lease liability, noncurrent			—				647,258
Total long-term liabilities			—				647,258
Total liabilities		$	—			$	1,508,616

The following information presents the major classes of line items constituting the after-tax loss from discontinued operations in the consolidated statements of operations for the six months ended June 30, 2024 and 2023:

		June 30, 2024				June 30, 2023
Revenues
Products		$	158,612			$	991,492
Cost of revenues
Products			18,989				562,872
Gross profit			139,624				428,620
Operating expenses
General and administrative			28,542				93,596
Compensation			18,205				125,286
Professional services			—				(4,000	)
Depreciation and amortization expense			—				546,203
Total operating expenses			46,747				761,085
Operating profit (loss)			92,877				(332,465	)
Other income (expense)
Other income (expense)			—				8,826
Gain on extinguishment of debt			—				67,332
Interest expense			(3,444	)			(147,133	)
Total other income (expense)			(3,444	)			(70,976	)
Net income (loss) from discontinued operations			89,433				(403,441	)
Income tax expense			—				—
Net income (loss)		$	89,433			$	(403,441	)