v3.23.3
DISCONTINUED OPERATIONS
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS

NOTE 15 - DISCONTINUED OPERATIONS

 

Rotmans closed its showroom on December 14, 2022. The Company has accounted for the closing as discontinued operations in accordance with ASC No. 205-20, Discontinued Operations. The results of operations are reported as discontinued operations in 2023 and 2022. The assets and liabilities have been reported in the condensed consolidated balance sheets as assets and liabilities of discontinued operations.

 

 

The loss from discontinued operations for the three and six months ended June 30, 2023 and 2022 are as follows:

 

   2023   2022   2023   2022 
   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2023   2022   2023   2022 
                 
Revenue  $50,000   $3,150,710   $157,479   $6,866,448 
                     
Cost of revenue   -    1,442,022    122,650    3,064,071 
                     
Gross profit   50,000    1,708,688    34,829    3,802,377 
                     
Operating expenses:                    
Salaries, wages and benefits   101,954    726,436    366,625    1,575,580 
Agent fees   -    327,007    -    745,186 
Professional fees   23,099    111,326    121,692    167,916 
Advertising   (824)   306,103    66,456    593,357 
Rent   181,061    177,184    360,843    352,518 
Service charges   319    82,635    20,919    188,038 
Depreciation and amortization   4,640    115,461    9,824    230,922 
Other operating   124,733    367,469    651,238    820,797 
                     
Total operating expenses   434,982    2,213,621    1,597,597    4,674,314 
                     
Loss from operations   (384,982)   (504,933)   (1,562,768)   (871,937)
                     
Other income (expense):                    
Interest expense   (76,737)   (95,688)   (160,439)   (190,282)
Gain on settlement of debt, net   -    -    39,770    - 
Gain on sale of property and equipment   213,776    -    213,776    - 
Other income   26,594    33,752    32,290    67,704 
                     
Total other income (expense), net   163,633    (61,936)   125,397    (122,578)
                     
Net loss from discontinued operations  $

(221,349

)  $

(566,869

)  $

(1,437,371

)  $

(994,515

)

 

 

Details of the balance sheet items for discontinued operations as are as follows:

 

   2023   2022 
         
Current assets:          
Cash  $131,112   $123,325 
Accounts receivable   187,342    1,853,972 
Other receivables   33,334    684,775 
Inventories   -    76,379 
Prepaid expenses and other   399,616    288,520 
           
Total current assets  $751,404   $3,026,971 
           
Non-current assets:          
Property and equipment, net  $114,889   $490,420 
Operating lease right-of-use assets, net   6,642,285    7,008,276 
Other assets   5,274    5,274 
           
Total non-current assets  $6,762,448   $7,503,970 
           
Current liabilities:          
Accounts payable  $254,937   $339,426 
Accrued expenses   125,525    726,410 
Operating lease liabilities - current maturities   811,000    737,000 
Finance lease liabilities - current maturities   181,000    119,000 
Related party debt - current maturities   22,518    406,753 
           
Total current liabilities  $1,394,980   $2,328,589 
           
Non-current liabilities:          
Operating lease liabilities, net of current maturities  $4,807,453   $5,189,140 
Finance lease liabilities, net of current maturities   262,527    324,527 
           
Total non-current liabilities  $5,069,980   $5,513,667 

 

The consolidated statements of cash flows do not present the cash flows from discontinued operations separately from cash flows from continuing operations. Included in adjustments to reconcile net loss to net cash used in operating activities for the six months ended June 30, 2023 and 2022 are the following discontinued operations items:

 

   2023   2022 
         
Depreciation  $9,824   $106,756 
Bad debts   4,537    3,461 
Amortization of intangible assets   -    124,166 
Noncash lease expense   73,408    153,016 
Gain on settlement of debt, net   (39,770)   -