SCHEDULE OF DISCONTINUED OPERATIONS |
SCHEDULE OF DISCONTINUED OPERATIONS
| |
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 | ) | |
| - | |
|