Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.23.2
Discontinued Operations
 6 Months Ended
Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS

NOTE 10 – DISCONTINUED OPERATIONS

 

During the three months ended March 31, 2023, we discontinued our at-home services in New York, NY, our Clinics operations in Los Angeles, CA, as well as our services in the U.K. During the three months ended June 30, 2023, we sold our assets associated with the Clinics operations in Los Angeles, CA, and the lease associated with the related property was assumed by the buyer in the transaction. Accordingly, as of June 30, 2023, the previously discontinued operations of our Clinics segment have been disposed of. 

 

As of June 30, 2023, the carrying amounts of the classes of assets and liabilities related to the discontinued operations of the Clinics operations were $0.

 

The results of operations from discontinued operations for the three and six months ended June 30, 2023 and 2022, have been reflected as discontinued operations in the condensed consolidated statements of operations and consist of the following:

 

    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2023     2022     2023     2022  
Revenues   $
-
     $ 13,581     $
-
     $ 27,239  
Cost of services    
-
       15,101      
-
       28,038  
Gross margin    
-
       (1,520 )    
-
       (799 )
                                 
Selling, general and administrative     165,146       467,016       502,063       793,395  
Loss from discontinued operations     (165,146 )     (468,535 )     (502,063 )     (794,194 )
Gain on forgiveness of accounts payable    
-
      
-
      
-
       45,000  
Gain on sale of assets    
-
      
-
       65,048      
-
  
Loss from discontinued operations, before income tax     (165,146 )     (468,535 )     (437,015 )     (749,194 )
Income tax expense    
-
      
-
      
-
      
-
  
Net loss from discontinued operations, net of tax     (165,146 )     (468,535 )     (437,015 )     (749,194 )
                                 
Weighted-average common shares outstanding, basic and diluted
     26,128,022       23,444,135       26,100,681       23,226,253  
Basic and diluated loss per share from discontinued operations
   $ (0.01 )   $ (0.02 )   $ (0.02 )   $ (0.03 )

 

The following table presents the gain on the sale of assets in Los Angeles, CA:

 

    As of
June 30,
2023		  
Cash proceeds   $ 27,500  
Proceeds to receive in installments     122,500  
Total   $ 150,000  
Less transaction costs     (11,250 )
Less book value of assets     (73,702 )
Gain on sale, before income tax   $ 65,048  
Income tax expense    
-
  
Gain on sale, net of tax   $ 65,048  

 

The following table presents non-cash items related to discontinued operations, which are included in the Company’s unaudited condensed consolidated statement of cash flows:

 

    Six months ended
June 30,
2023		  
Cash Flows From Operating Activities:      
Gain on sale of assets   $ (65,048 )
         
Supplemental disclosure of cash flow information:        
Amount due from sale of assets   $ 122,500