v3.26.1
DISCONTINUED OPERATIONS (Tables)
 6 Months Ended
Jun. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
SCHEDULE OF DISCONTINUED OPERATIONS

The following table provides the components of assets and liabilities related to discontinued operations that were included in the Company’s Consolidated Balance Sheets for the periods presented:

 

   June 30,   December 31, 
   2026   2025 
Current assets          
Accounts receivable, net  $1,200   $16,200 
Prepaids   4,003    51,663 
Current assets related to discontinued operations  $5,203   $67,863 
           
Current liabilities          
Accrued bonuses and commissions (1)  $342,705   $1,125,371 
Accrued royalties and expenses   2,880    108,107 
Current liabilities related to discontinued operations  $345,585   $1,233,478 

 

(1)Accrued bonuses and commissions is comprised of severance for terminated THP employees.

 

The assets and liabilities included in discontinued operations represent balances that are expected to be collected and expenses to be paid as part of the winding down of THP.

 

The following table provides the operating results of discontinued operations that were included in the Company’s Consolidated Statements of Operations for the periods presented:

 

   2026   2025   2026   2025 
   Three Months Ended
June 30,		  

Six Months Ended

June 30,

 
   2026   2025   2026   2025 
Net revenue  $-   $26,582   $16,358   $26,582 
                     
Operating expenses                    
Selling, general, and administrative   41,720    1,918,875    297,162    4,230,277 
Research and development   -    200,679    -    364,458 
Depreciation and amortization(1)   -    425,685    -    856,063 
Total operating expenses   41,720    2,545,239    297,162    5,450,798 
                     
Operating loss   (41,720)   (2,518,657)   (280,804)   (5,424,216)
                     
Other income (expense)                    
Other income(2)   -    -    300,000    - 
Loss on disposal of property and equipment   -    -    -    (1,258)
Total other income (expense)   -    -    300,000    (1,258)
                     
Net income (loss) from discontinued operations  $(41,720)  $(2,518,657)  $19,196   $(5,425,474)

 

(1)Depreciation expense of $7,021 and $12,482 was reclassified as continuing operations in the three and six months ended June 30, 2025, respectively, and is therefore no longer reflected in discontinued operations.

 

(2)Other income relates to due diligence payments received to compensate the Company for costs incurred to maintain limited operations of certain software, technology and cloud related services while an interested party conducted its due diligence. In March 2026, the due diligence period ended and was not extended.

 

 

The following table provides operating, investing and financing cash flow information for discontinued operations for the periods presented:

 

   2026   2025 
  

Six Months Ended

June 30,

 
   2026   2025 
Operating Activities:          
Depreciation and amortization  $-   $856,063 
Loss on disposal of property and equipment   -    1,258 
Share-based compensation   -    155,802 
Accounts receivable, net   15,000    (8,700)
Prepaid and other assets   47,660    (329,506)
Accrued royalties and expenses   (105,227)   277,836 
Accrued bonuses and commissions   (782,666)   (337,607)
Investing Activities:          
Purchases of property and equipment  $-   $(3,368,324)
CarePICS Acquisition   -    (2,122,146)
Financing Activities:          
Payoff of debt assumed in CarePICS Acquisition  $-   $(1,650,000)
Supplemental noncash investing and financing activities:          
Non-monetary exchange to acquire intangible assets  $-   $2,084,278 
Earnout liability generated by CarePICS Acquisition   -    1,355,603