Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Tables)

v3.23.3
Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations 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:
December 31, 2022
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:
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 
2 The Company’s intangible assets consisted of the following:
December 31,
2022
Patent and domains $ 19 
Computer software 1,682 
Intangible assets 1,701 
Less accumulated amortization (966)
Total intangible assets $ 735 
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 
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 
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 
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 
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 
The results of operations for these entities for the 13 and 39 weeks ended September 30, 2023 and October 1, 2022, respectively, have been reflected as discontinued operations in the consolidated statements of operations and comprehensive income (loss) and consist of the following:
13 Weeks Ended 39 Weeks Ended
September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022
Revenues $ —  $ 8,587  $ 3,795  $ 28,449 
Cost of revenues —  7,553  3,992  23,913 
Gross profit —  1,034  (197) 4,536 
Operating expenses from discontinued operations:
Selling, general and administrative expenses $ —  $ 2,248  1,469  6,761 
Gain on sale of GeoTraq —  —  (15,824) (10,241)
Total operating expenses from discontinued operations —  2,248  (14,355) (3,480)
Operating income from discontinued operations —  (1,214) 14,158  8,016 
Other income (expense) from discontinued operations
Interest expense, net —  (280) (181) (698)
Loss on litigation settlement —  —  —  (115)
Other income (expense), net —  (688) (1) (1,685)
Total other income (loss), net —  (968) $ (182) $ (2,498)
Income before provision for income taxes from discontinued operations —  (2,182) 13,976  5,518 
Income tax provision (benefit) (28) 16  3,158  23 
Net income from discontinued operations $ 28  $ (2,198) $ 10,818  $ 5,495 
The cash flow activity from discontinued operations for the 39 weeks ended September 30, 2023 and October 1, 2022 have been reflected as discontinued operations in the consolidated statements of cash flows and consist of the following:
39 weeks ended
September 30, 2023 October 1, 2022
DISCONTINUED OPERATING ACTIVITIES:
Net income (loss) from discontinued operations 10,818  5,495 
Depreciation and amortization 96  344 
Amortization of debt issuance costs 11  10 
Amortization of right-of-use assets 53  54 
Change in deferred taxes 3,157  — 
Gain on sale of ARCA, net of cash (15,967) — 
Gain on sale of GeoTraq —  (10,241)
Changes in assets and liabilities:
Accounts receivable 2,932  (1,165)
Inventories 299  899 
Prepaid expenses and other current assets 55  248 
Accounts payable and accrued expenses 866  1,692 
Other assets —  (43)
Net cash provided by operating activities from discontinued operations $ 2,320  $ (2,707)
DISCONTINUED INVESTING ACTIVITIES:
Purchases of property and equipment (123) (736)
Purchase of intangible assets (33) (214)
Net cash used in investing activities from discontinued operations $ (156) $ (950)
DISCONTINUED FINANCING ACTIVITIES:
Proceeds from note payable 5,162  4,052 
Payment on related party note (38) (107)
Proceeds from issuance of short-term notes payable (7,291) — 
Payments on notes payable (45) (559)
Net cash used in financing activities from discontinued operations $ (2,212) $ 3,386 
Effect of changes in exchange rate on cash and cash equivalents (5) — 
DECREASE IN CASH AND CASH EQUIVALENTS (53) (271)
CASH AND CASH EQUIVALENTS, beginning of period 53  704 
CASH AND CASH EQUIVALENTS, end of period $ —  $ 433