| Schedule of Discontinued Operations Net of Tax |
The following table presents components of discontinued operations, net of tax for the years ended December 31, 2025 and 2024:
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
Revenues |
|
$ |
6,190,179 |
|
|
$ |
31,992,511 |
|
Cost of goods sold |
|
|
26,197,708 |
|
|
|
19,017,498 |
|
Gross profit |
|
|
(20,007,529 |
) |
|
|
12,975,013 |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
General and administrative expenses: |
|
|
|
|
|
|
Salaries and benefits |
|
|
2,423,687 |
|
|
|
209,815 |
|
Other general and administrative expenses |
|
|
4,044,848 |
|
|
|
3,231,563 |
|
Total general and administrative expenses |
|
|
6,468,535 |
|
|
|
3,441,378 |
|
Total operating expenses |
|
|
6,468,535 |
|
|
|
3,441,378 |
|
|
|
|
|
|
|
|
Net operating income (loss) |
|
|
(26,476,064 |
) |
|
|
9,533,635 |
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
Interest income |
|
|
27,266 |
|
|
|
138,795 |
|
Interest expense |
|
|
(607,121 |
) |
|
|
(723,436 |
) |
Loss on early extinguishment of debt |
|
|
- |
|
|
|
(696,502 |
) |
Gain on termination of leases |
|
|
1,896,276 |
|
|
|
- |
|
Loss on disposition of assets |
|
|
(8,658,598 |
) |
|
|
- |
|
Total other expense |
|
|
(7,342,177 |
) |
|
|
(1,281,143 |
) |
|
|
|
|
|
|
|
Income (loss) of discontinued operations before income tax |
|
|
(33,818,241 |
) |
|
|
8,252,492 |
|
Income tax provision |
|
|
- |
|
|
|
(123,579 |
) |
Net income (loss) |
|
$ |
(33,818,241 |
) |
|
$ |
8,128,913 |
|
|
|
|
|
|
Cash received |
$ |
|
1,500,000 |
|
Liabilities assumed by Trea Grove LLC |
|
|
635,380 |
|
Less: |
|
|
|
Assets sold: |
|
|
|
Assets held for sale |
|
|
(713,256 |
) |
Construction in process - freeze dryers |
|
|
(2,768,908 |
) |
Freeze dryers, net |
|
|
(6,744,473 |
) |
Leasehold improvements, net |
|
|
(1,459,067 |
) |
Other property plant and equipment, net |
|
|
(1,778,534 |
) |
Accumulated depreciation |
|
|
2,670,261 |
|
Net loss on disposition of assets |
|
|
(8,658,598 |
) |
Severance expense |
|
|
(2,442,500 |
) |
Deal costs |
|
|
(230,742 |
) |
Loss on sale of assets |
$ |
|
(11,331,840 |
) |
Balance Sheet The asset and related liabilities related to the discontinued operations were disposed or derecognized prior to December 31, 2025, therefore the assets and liabilities for the year ended December 31, 2025 represent those of the ongoing operation. Balance sheet amounts from the year ended December 31, 2024 have been reclassified as assets and liabilities related to discontinued operations. The following table represents the assets and liabilities reclassified from their December 31, 2024 presentation.
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
Assets of discontinued operation |
|
|
|
|
|
|
Accounts receivable, net |
|
$ |
60,333 |
|
|
$ |
460,147 |
|
Inventory, net |
|
|
- |
|
|
|
20,369,112 |
|
Current assets of discontinued operation |
|
|
60,333 |
|
|
|
20,829,259 |
|
Total property and equipment, net |
|
|
- |
|
|
|
11,673,520 |
|
Right of use assets |
|
|
- |
|
|
|
16,258,505 |
|
Security deposits |
|
|
- |
|
|
|
1,057,586 |
|
Total assets of discontinued operation |
|
$ |
60,333 |
|
|
$ |
49,818,870 |
|
|
|
|
|
|
|
|
Liabilities of discontinued operation |
|
December 31, 2024 |
|
|
December 31, 2024 |
|
Current portion of operating lease liabilities |
|
$ |
2,599,102 |
|
|
$ |
2,473,115 |
|
Long term portion of operating lease liabilities |
|
|
- |
|
|
|
15,113,554 |
|
Total liabilities of discontinued operation |
|
$ |
2,599,102 |
|
|
$ |
17,586,669 |
|
|