v3.26.1
DISCONTINUED OPERATIONS (Tables)
 6 Months Ended
Jun. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
SCHEDULE OF NET GAIN ON ADDITIONAL PAID IN CAPITAL

The net gain (APIC) was calculated as follows (in thousands):

 

     
Reduction of cash and cash equivalents  $(2,388)
Reduction of accounts receivable, net   (4,730)
Reduction of inventory, net   (282)
Reduction of other current assets   (996)
Reduction in property and equipment, net of accumulated depreciation   (48)
Reduction in accounts payable and accrued liabilities   55,000 
Increase in other current liabilities   (1,808)
Increase in related party notes payable   (10,000)
Increase in additional paid-in capital  $(34,748)
      
Income Taxes Payable on transaction  $960 
Additional paid-in capital reduction  $960 
SCHEDULE OF DISCONTINUED OPERATIONS

Details of net income (loss) from discontinued operations, net of taxes, are as follows (in thousands):

 

For the six months ended  June 30, 2026   June 30, 2025 
Revenues  $-   $24,599 
Cost of goods sold   -    19,115 
Selling, general and administrative   -    7,281 
Research & Development   -    40 
Depreciation   -    14 
Amortization   -    - 
Interest expense   -    1,050 
Other expenses (income)   -    (1,176)
Current tax   -    - 
Net Income (Loss) from Discontinued Ops (Net of Tax)  $-   $(1,725)

 

For the three months ended  June 30, 2026   June 30, 2025 
Revenues  $-   $12,675 
Cost of goods sold   -    10,149 
Selling, general and administrative   -    4,082 
Research & Development   -    18 
Depreciation   -    11 
Amortization   -    - 
Interest expense   -    848 
Other expenses (income)   -    (1,431)
Current tax   -    - 
Net Income (Loss) from Discontinued Ops (Net of Tax)  $-   $(1,002)

 

Because the transaction was effective June 30, 2025, no assets or liabilities disposed in the sale were included on the balance sheet as of December 31, 2025. The balances of the disposed assets and liabilities as of December 31, 2024 were as follows:

 

Assets     
Current Assets     
Accounts receivable, net  $10,608 
Inventory, net   4,197 
Prepaid expenses   482 
Other current assets   61 
Total current assets   15,348 
      
Property and equipment, net of accumulated depreciation   8 
Right of use lease asset   471 
Total Assets  $15,827 
      
LIABILITIES AND STOCKHOLDERS’ EQUITY     
Current liabilities     
Accounts payable and accrued liabilities  $56,863 
Accrued payroll and sales tax   1,490 
Lease liability – current portion   103 
Other current liabilities   206 
Total Current Liabilities   58,662 
Deferred revenue   5,891 
Lease liability   178 
Total liabilities  $64,731 
SCHEDULE OF SUPPLEMENTAL CASH-FLOW INFORMATION FOR DISCONTINUED OPERATIONS

Cash flows related to the discontinued business have not been segregated and are included in the condensed consolidated statements of cash flows. The following table provides supplemental cash-flow information for the discontinued operations (in thousands):

 

   Six months ended
June 30, 2026		   Six months ended
June 30, 2025		 
Depreciation and amortization   -    (2,304)
Capital expenditures   -    (771)
Other significant non-cash items          
Cancelation of lease   -    471