| SCHEDULE OF DISCONTINUED OPERATION |
The
following table summarizes the significant line items included in Net Loss from Discontinued Operations, in the Consolidated Statements
of Operations for the thirty-six-week period ended September 13, 2024:
SCHEDULE OF DISCONTINUED OPERATION
| | |
Thirty-Six Week
Period Ended
September 13, 2024
| |
| SALES, NET | |
$ | 46,349,908 | |
| COST OF SALES | |
| 28,691,071 | |
| GROSS PROFIT | |
| 17,658,837 | |
| | |
| | |
| OPERATING EXPENSES, NET | |
| | |
| Selling, general and administrative | |
| 19,212,986 | |
| Gain on sale of asset | |
| (205,146 | ) |
| TOTAL OPERATING EXPENSES, NET | |
| 19,007,840 | |
| | |
| | |
| LOSS FROM OPERATIONS | |
| (1,349,003 | ) |
| | |
| | |
| OTHER INCOME (EXPENSE) | |
| (2,426,556 | ) |
| | |
| | |
| NET LOSS FROM DISCONTINUED OPERATIONS | |
$ | (3,775,559 | ) |
There
were no assets or liabilities classified as discontinued operations as of December 31, 2025 and December 31, 2024.
The
following table summarizes the significant operating cash and noncash items, capital expenditures and financing activities of discontinued
operations for the period ended September 13, 2024:
| | |
Thirty-Six-Week
Period Ended September
13, 2024 | |
| Net loss | |
$ | (3,775,559 | ) |
| Depreciation and amortization | |
| 1,069,958 | |
| Loss on warrant liability extinguishment | |
| 1,888,889 | |
| Gain on sale of building | |
| (205,146 | ) |
| Non-cash interest expense | |
| 72,250 | |
| Change in allowance for credit losses | |
| - | |
| Loss on vendor settlement | |
| - | |
| Amortization of right-of-use asset | |
| 2,381,131 | |
| Write-down of obsolete and slow-moving inventory | |
| 2,032,995 | |
| Change in contingent consideration | |
| - | |
| Impairment of goodwill | |
| - | |
| Accounts receivable | |
| (253,460 | ) |
| Inventories | |
| (2,000,669 | ) |
| Prepaid expenses and vendor deposits | |
| (48,693 | ) |
| Other current assets | |
| 20,520 | |
| Due from related party | |
| (2,736,272 | ) |
| Other assets | |
| (83,482 | ) |
| Accounts payable and accrued expenses | |
| 998,829 | |
| Contract liabilities | |
| (156,904 | ) |
| Lease liability | |
| (2,280,459 | ) |
| NET CASH USED IN OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS | |
| (3,076,072 | ) |
| | |
| | |
| Payment for acquisition | |
| (5,475,000 | ) |
| Proceeds from sale of Saugerties building | |
| 749,000 | |
| Purchases of property and equipment | |
| (145,680 | ) |
| NET CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS | |
| (4,871,680 | ) |
| | |
| | |
| Proceeds from security purchase agreement | |
| 1,700,000 | |
| Proceeds from acquisition loan | |
| 7,500,000 | |
| Principal payments on loan payable | |
| (349,082 | ) |
| Due from related party | |
| (1,819,570 | ) |
| Net transfers to HCWC related to Spin-Off | |
| (506,176 | ) |
| NET CASH PROVIDED BY FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS | |
| 6,525,172 | |
| | |
| | |
| NET DECREASE IN CASH | |
$ | (1,422,580 | ) |
|