Discontinued Operations (Tables)
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3 Months Ended |
Apr. 01, 2023 |
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| Discontinued Operations and Disposal Groups [Abstract] |
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| Schedule Of discontinued amount included in assets and liabilities |
The assets and liabilities have been reflected as discontinued operations in the consolidated balance sheets as of December 31, 2022, and consist of the following:
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December 31, 2022 |
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Assets from discontinued operations |
|
|
|
Cash and cash equivalents |
|
$ |
53 |
|
Trade and other receivables, net |
|
|
7,816 |
|
Inventories |
|
|
366 |
|
Prepaid expenses and other current assets |
|
|
377 |
|
Total current assets from discontinued operations |
|
|
8,612 |
|
Property and equipment, net 1 |
|
|
2,705 |
|
Right of use asset - operating leases |
|
|
5,290 |
|
Intangible assets, net 2 |
|
|
735 |
|
Deposits and other assets |
|
|
249 |
|
Total other assets from discontinued operations |
|
|
8,979 |
|
Total assets from discontinued operations |
|
$ |
17,591 |
|
Liabilities from discontinued operations |
|
|
|
Accounts payable |
|
$ |
4,423 |
|
Accrued liabilities - other 3 |
|
|
3,278 |
|
Accrued liability - California sales taxes 4 |
|
|
6,264 |
|
Lease obligation short-term - operating leases |
|
|
1,631 |
|
Short term debt 5 |
|
|
4,172 |
|
Current portion of note payable |
|
|
381 |
|
Related party note |
|
|
233 |
|
Total current liabilities from discontinued operations |
|
|
20,382 |
|
Lease obligation long-term - operating leases |
|
|
3,816 |
|
Notes payable - long-term portion 6 |
|
|
1,339 |
|
Long-term portion related party note payable 7 |
|
|
605 |
|
Total noncurrent liabilities from discontinued operations |
|
|
5,760 |
|
Total liabilities from discontinued operations |
|
$ |
26,142 |
|
1 The Company's property and equipment consisted of the following:
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|
|
|
|
|
|
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Useful Life
(Years) |
|
December 31, 2022 |
|
Buildings and improvements |
|
3-30 |
|
$ |
85 |
|
Equipment |
|
3-15 |
|
|
3,915 |
|
Projects under construction |
|
|
|
|
1,447 |
|
Property and equipment |
|
|
|
|
5,447 |
|
Less accumulated depreciation |
|
|
|
|
(2,742 |
) |
Total property and equipment, net, from discontinued operations |
|
|
|
$ |
2,705 |
|
Depreciation expense was $60,000 and $79,000 for the 13 weeks ended April 1, 2023 and April 2, 2022, respectively.
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| Schedule of discontinued operations in the consolidated statements of operations |
The results of operations for these entities for the 13 weeks ended April 1, 2023 and April 2, 2022 have been reflected as discontinued operations in the consolidated statements of operations and comprehensive income (loss) and consist of the following:
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13 weeks ended |
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|
|
April 1, 2023 |
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|
April 2, 2022 |
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Revenues |
|
$ |
3,795 |
|
|
$ |
9,324 |
|
Cost of revenues |
|
|
3,992 |
|
|
|
7,471 |
|
Gross profit |
|
|
(197 |
) |
|
|
1,853 |
|
Operating expenses from discontinued operations: |
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|
|
|
|
|
Selling, general and administrative expenses |
|
$ |
(14,355 |
) |
|
$ |
2,263 |
|
Total operating expenses from discontinued operations |
|
|
(14,355 |
) |
|
|
2,263 |
|
Operating loss from discontinued operations |
|
|
14,158 |
|
|
|
(410 |
) |
Other income (expense) from discontinued operations |
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|
|
|
|
|
Interest expense, net |
|
|
(181 |
) |
|
|
(190 |
) |
Loss on litigation settlement |
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|
|
|
|
(115 |
) |
Other expense, net |
|
|
(1 |
) |
|
|
(690 |
) |
Total other income (loss), net |
|
|
(182 |
) |
|
|
(995 |
) |
Income (loss) before provision for income taxes from discontinued operations |
|
|
13,976 |
|
|
|
(1,405 |
) |
Income tax provision |
|
|
3,229 |
|
|
|
3 |
|
Net income (loss) from discontinued operations |
|
$ |
10,747 |
|
|
$ |
(1,408 |
) |
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| Schedule of discontinued operations in the consolidated statements of cash flows |
The cash flow activity from discontinued operations for the 13 weeks ended April 1, 2023 and April 2, 2022 have been reflected as discontinued operations in the consolidated statements of cash flows and consist of the following:
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13 weeks ended |
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|
April 1, 2023 |
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|
April 2, 2022 |
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DISCONTINUED OPERATING ACTIVITIES: |
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|
|
|
|
|
Net income (loss) from discontinued operations |
|
|
10,747 |
|
|
|
(1,408 |
) |
Depreciation and amortization |
|
|
96 |
|
|
|
133 |
|
Amortization of debt issuance costs |
|
|
11 |
|
|
|
3 |
|
Amortization of right-of-use assets |
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|
53 |
|
|
|
(16 |
) |
Change in deferred taxes |
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|
3,229 |
|
|
|
— |
|
Gain on sale of ARCA, net of cash |
|
|
(15,967 |
) |
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
2,932 |
|
|
|
(740 |
) |
Inventories |
|
|
299 |
|
|
|
(40 |
) |
Prepaid expenses and other current assets |
|
|
55 |
|
|
|
19 |
|
Accounts payable and accrued expenses |
|
|
866 |
|
|
|
1,802 |
|
Other assets |
|
|
(1 |
) |
|
|
40 |
|
Net cash provided by (used in) operating activities from discontinued operations |
|
$ |
2,320 |
|
|
$ |
(207 |
) |
DISCONTINUED INVESTING ACTIVITIES: |
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|
|
|
|
|
Purchases of property and equipment |
|
|
(123 |
) |
|
|
(127 |
) |
Purchase of intangible assets |
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|
(33 |
) |
|
|
— |
|
Net cash used in investing activities from discontinued operations |
|
$ |
(156 |
) |
|
$ |
(127 |
) |
DISCONTINUED FINANCING ACTIVITIES: |
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|
|
|
|
Proceeds from note payable |
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|
5,162 |
|
|
|
— |
|
Payment on related party note |
|
|
(38 |
) |
|
|
— |
|
Proceeds from issuance of short term notes payable |
|
|
(7,291 |
) |
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|
— |
|
Payments on notes payable |
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|
(45 |
) |
|
|
(63 |
) |
Net cash used in financing activities from discontinued operations |
|
$ |
(2,212 |
) |
|
$ |
(63 |
) |
Effect of changes in exchange rate on cash and cash equivalents |
|
|
(5 |
) |
|
|
(41 |
) |
DECREASE IN CASH AND CASH EQUIVALENTS |
|
|
(53 |
) |
|
|
(438 |
) |
CASH AND CASH EQUIVALENTS, beginning of period |
|
|
53 |
|
|
|
704 |
|
CASH AND CASH EQUIVALENTS, end of period |
|
$ |
— |
|
|
$ |
266 |
|
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| Schedule of company's property and equipment |
1 The Company's property and equipment consisted of the following:
|
|
|
|
|
|
|
|
|
Useful Life
(Years) |
|
December 31, 2022 |
|
Buildings and improvements |
|
3-30 |
|
$ |
85 |
|
Equipment |
|
3-15 |
|
|
3,915 |
|
Projects under construction |
|
|
|
|
1,447 |
|
Property and equipment |
|
|
|
|
5,447 |
|
Less accumulated depreciation |
|
|
|
|
(2,742 |
) |
Total property and equipment, net, from discontinued operations |
|
|
|
$ |
2,705 |
|
|
| Schedule of company's intangible assets |
2 The Company's intangible assets consisted of the following:
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|
|
|
|
|
|
December 31,
2022 |
|
Patent and domains |
|
$ |
19 |
|
Computer software |
|
|
1,682 |
|
Intangible assets |
|
|
1,701 |
|
Less accumulated amortization |
|
|
(966 |
) |
Total intangible assets |
|
$ |
735 |
|
|
| Summary of company's accrued liabilities |
3 The Company's accrued liabilities consisted of the following:
|
|
|
|
|
|
|
December 31,
2022 |
|
Compensation and benefits |
|
$ |
685 |
|
Contract liability |
|
|
290 |
|
Accrued incentive and rebate checks |
|
|
2,037 |
|
Accrued taxes |
|
|
219 |
|
Other |
|
|
47 |
|
Total accrued expenses |
|
$ |
3,278 |
|
Historically t
|
| Summary of company's accrual relating to the California sales tax assessment |
4 The Company's accrual relating to the California sales tax assessment consisted of the following:
|
|
|
|
|
|
|
December 31,
2022 |
|
Accrued liability - CA sales tax assessment |
|
$ |
4,132 |
|
Accrued liability - interest on CA sales tax assessment |
|
|
2,132 |
|
Total |
|
$ |
6,264 |
|
|
| Summary of company's short term debt |
5 The Company's short-term debt consisted of the following:
|
|
|
|
|
|
|
December 31,
2022 |
|
Gulf Coast Bank and Trust Company |
|
$ |
4,206 |
|
Gulf Coast Bank and Trust Company loan origination fees |
|
|
(34 |
) |
Total |
|
$ |
4,172 |
|
|
| Summary of company's long-term debt |
6 The Company's long-term debt consisted of the following:
|
|
|
|
|
|
|
December 31,
2022 |
|
KLC Financial |
|
$ |
1,781 |
|
KLC Financial loan origination fees |
|
|
(61 |
) |
Total |
|
|
1,720 |
|
Less current portion |
|
|
(381 |
) |
Total |
|
$ |
1,339 |
|
|
| Summary of Company's related party debt |
7 The Company's related party debt consisted of the following:
|
|
|
|
|
|
|
December 31,
2022 |
|
Isaac Capital Group LLC |
|
$ |
838 |
|
Total |
|
|
838 |
|
Less current portion |
|
|
(233 |
) |
Total |
|
$ |
605 |
|
|