Sonnet BioTherapeutics, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

Discontinued Operations

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

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 March 31, 2020 and 2019 and for the years ended December 31, 2019.

The carrying amount of major classes of assets and liabilities included as part of discontinued operations are as follows:

	(Unaudited)
	Three Months			Year Ended
	March 31, 2020			December 31, 2019
Note receivable	$	149,000		$	149,000
Total assets		149,000			149,000

Accounts payable and accrued liabilities		247,600			435,600
Total liabilities		247,600			435,600

Net Assets of discontinued operations	$	(98,600	)	$	(286,600	)

The major line items comprising the loss of discontinued operations are as follows:

	(Unaudited)		(Unaudited)
	Three Months		Three Months
	March 31, 2020		March 31, 2019
Restaurant revenues	$	-	$	2,360,182
Expenses:
Administrative expenses		-		158,737
Cost of sales		-		855,504
Depreciation and amortization		-		83,044
Restaurant operating expenses		-		1,276,061
Other		-		2,390
		-		2,375,736
Income (Loss) of discontinued operations	$	-	$	(15,554	)