Discontinued Operations |
3. DISCONTINUED OPERATIONS
The Company sold Just Fresh and its South Africa
Hooters locations in 2019. Because of the sale, the Company has reclassified the operations of Just Fresh and the South Africa
Hooters locations to discontinued operations as of September 30, 2020 and December 31, 2019, and for the three and nine months
ended September 30, 2020 and 2019.
The carrying amount of major classes of assets and liabilities included
as part of discontinued operations are as follows:
|
|
September 30, 2020 |
|
|
December 31, 2019 |
|
|
|
|
|
|
|
|
(Note 1) |
|
Other receivable |
|
$ |
30,084 |
|
|
$ |
149,000 |
|
Total assets |
|
|
30,084 |
|
|
|
149,000 |
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
|
179,625 |
|
|
|
435,600 |
|
Total liabilities |
|
|
179,625 |
|
|
|
435,600 |
|
|
|
|
|
|
|
|
|
|
Net assets of discontinued operations |
|
$ |
(149,541 |
) |
|
$ |
(286,600 |
) |
The major line items comprising the loss of discontinued operations
are as follows:
|
|
Three Months
September 30, 2020 |
|
|
Three Months
September 30, 2019 |
|
Restaurant revenues |
|
$ |
— |
|
|
$ |
2,327,427 |
|
Expenses: |
|
|
|
|
|
|
|
|
Administration expenses |
|
|
— |
|
|
|
(141,306 |
) |
Cost of sales |
|
|
— |
|
|
|
(867,335 |
) |
Depreciation and amortization |
|
|
— |
|
|
|
(81,167 |
) |
Restaurant operating expenses |
|
|
— |
|
|
|
(1,195,578 |
) |
Other income |
|
|
— |
|
|
|
13,303 |
|
|
|
|
— |
|
|
|
(2,272,083 |
) |
Income of discontinued operations |
|
|
— |
|
|
$ |
55,344 |
|
|
|
Nine Months
September 30, 2020 |
|
|
Nine Months
September 30, 2019 |
|
Restaurant revenues |
|
$ |
— |
|
|
$ |
7,047,442 |
|
Expenses: |
|
|
|
|
|
|
|
|
Administration expenses |
|
|
— |
|
|
|
(494,533 |
) |
Cost of sales |
|
|
— |
|
|
|
(2,589,736 |
) |
Depreciation and amortization |
|
|
— |
|
|
|
(246,271 |
) |
Restaurant operating expenses |
|
|
— |
|
|
|
(3,770,721 |
) |
Other income |
|
|
— |
|
|
|
121,315 |
|
|
|
|
— |
|
|
|
(6,979,946 |
) |
Income of discontinued operations |
|
$ |
— |
|
|
$ |
67,496 |
|
Cash flows from discontinued operations is as follows:
|
|
Nine Months Ended |
|
|
|
September 30, 2020 |
|
|
September 30, 2019 |
|
Cash flows used in Operations Activities |
|
$ |
— |
|
|
$ |
(309,822 |
) |
Cash flows used in Investing Activities |
|
|
— |
|
|
|
(2,586 |
) |
Cash flows provided by Financing Activities |
|
|
— |
|
|
|
178,905 |
|
Effect of exchange rate changes from discontinued operations on cash |
|
|
|
|
|
|
10,563 |
|
Net cash used in Discontinued Operations |
|
$ |
— |
|
|
$ |
(122,940 |
) |
|