| Discontinued Operations |
NOTE 7– DISCONTINUED OPERATIONS
Pursuant to the merger agreement, the Company is working to divest its legacy operations and operating assets. The Company is actively pursuing the sale of its JDL and Ecessa businesses and has met the criteria to report the operations of these businesses as discontinued operations beginning in the fourth quarter of 2022.
The assets and liabilities of the discontinued operations that are classified as held for sale are as follows:
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
December 31, 2022 |
Trade accounts receivable |
|
$ |
961,968 |
|
$ |
752,420 |
Inventories |
|
|
154,998 |
|
|
145,808 |
Other current assets |
|
|
184,857 |
|
|
255,871 |
Total current assets |
|
$ |
1,301,823 |
|
$ |
1,154,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant, and equipment |
|
$ |
72,951 |
|
$ |
69,270 |
Right of use asset |
|
|
35,621 |
|
|
46,025 |
Intangible assets |
|
|
2,110,550 |
|
|
2,110,550 |
Goodwill |
|
|
45,688 |
|
|
45,688 |
Total noncurrent assets |
|
$ |
2,264,810 |
|
$ |
2,271,533 |
|
|
|
|
|
|
|
|
Total assets held for sale
|
|
$ |
3,566,633 |
|
$ |
3,425,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
250,632 |
|
$ |
381,992 |
Accrued compensation and benefits |
|
|
141,956 |
|
|
184,585 |
Operating lease liability |
|
|
39,237 |
|
|
50,170 |
Other accrued liabilities |
|
|
9,565 |
|
|
10,727 |
Deferred revenue |
|
|
627,809 |
|
|
533,685 |
Total current liabilities |
|
$ |
1,069,199 |
|
$ |
1,161,159 |
|
|
|
|
|
|
|
Deferred revenue |
|
$ |
262,455 |
|
$ |
250,875 |
Total noncurrent liabilities |
|
$ |
262,455 |
|
$ |
250,875 |
|
|
|
|
|
|
|
Total liabilities held for sale |
|
$ |
1,331,654 |
|
$ |
1,412,034 |
The financial results of the discontinued operations are as follows:
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31 |
|
|
|
2023 |
|
2022 |
|
Sales |
|
$ |
1,752,182 |
|
$ |
86,932 |
|
Cost of sales |
|
|
1,244,368 |
|
|
57,508 |
|
Selling, general and administrative expenses |
|
|
448,705 |
|
|
23,522 |
|
Transaction costs |
|
|
14,426 |
|
|
— |
|
Operating income before income taxes |
|
|
44,683 |
|
|
5,902 |
|
Income tax expense |
|
|
— |
|
|
— |
|
Income from discontinued operations |
|
$ |
44,683 |
|
$ |
5,902 |
|
|