| Discontinued Operations |
5. DISCONTINUED OPERATIONS
As noted in Note 4, 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 December 31, 2019 and 2018 and for the years ended December
31, 2019 and 2018.
The carrying amount of major classes of assets
and liabilities included as part of discontinued operations are as follows:
| |
|
December 31, 2019 |
|
|
December 31, 2018 |
|
| Cash |
|
$ |
- |
|
|
$ |
106,095 |
|
| Accounts receivable |
|
|
- |
|
|
|
61,884 |
|
| Note receivable |
|
|
149,000 |
|
|
|
- |
|
| Inventory |
|
|
- |
|
|
|
143,100 |
|
| Property, plant and equipment |
|
|
- |
|
|
|
711,569 |
|
| Operating lease assets |
|
|
- |
|
|
|
- |
|
| Goodwill and intangible assets |
|
|
- |
|
|
|
1,369,456 |
|
| Other assets |
|
|
- |
|
|
|
80,729 |
|
| Total assets |
|
|
149,000 |
|
|
|
2,472,833 |
|
| |
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
|
435,600 |
|
|
|
1,210,368 |
|
| Debt |
|
|
- |
|
|
|
76,909 |
|
| Total liabilities |
|
|
435,600 |
|
|
|
1,287,277 |
|
| |
|
|
|
|
|
|
|
|
| Net Assets of discontinued operations |
|
$ |
(286,600 |
) |
|
$ |
1,185,556 |
|
The major line items comprising the loss of
discontinued operations are as follows:
| |
|
Year Ended |
|
| |
|
December 31, 2019 |
|
|
December 31, 2018 |
|
| Restaurant revenues |
|
$ |
8,203,692 |
|
|
$ |
9,880,237 |
|
| Expenses: |
|
|
|
|
|
|
|
|
| Administrative expenses |
|
|
588,368 |
|
|
|
716,642 |
|
| Cost of sales |
|
|
3,067,867 |
|
|
|
3,586,874 |
|
| Depreciation and amortization |
|
|
252,234 |
|
|
|
346,761 |
|
| Asset impairment charge |
|
|
857,357 |
|
|
|
59,693 |
|
| Restaurant operating expenses |
|
|
4,460,078 |
|
|
|
5,156,041 |
|
| Other |
|
|
(538 |
) |
|
|
(156,829 |
) |
| |
|
|
9,225,366 |
|
|
|
9,709,182 |
|
| Income (Loss) of discontinued operations |
|
$ |
(1,021,674 |
) |
|
$ |
171,055 |
|
|