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Discontinued Operations (Tables)
12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations

On March 20, 2024, the Company entered into the Purchase Agreement to sell AxoBio and closed on such sale on March 26, 2024 as detailed in Note 1. The assets and liabilities of AxoBio are classified as available for sale in the accompanying consolidated balance sheets and consist of the following:

 

December 31,

 

 

2023

 

 

2022

 

Assets available for sale

 

 

 

 

 

Cash and cash equivalents

$

804,277

 

 

$

 

Accounts receivable, net

 

7,713,600

 

 

 

 

Prepaid expenses

 

251,086

 

 

 

 

Inventories

 

3,038,179

 

 

 

 

Property and equipment, net

 

63,384

 

 

 

 

Intangible assets, net

 

22,262,568

 

 

 

 

Goodwill

 

19,188,278

 

 

 

 

Total assets available for sale

$

53,321,372

 

 

$

 

 

 

 

 

 

 

Liabilities available for sale

 

 

 

 

 

Accounts payable

$

8,520,243

 

 

$

 

Accrued interest

 

134,961

 

 

 

 

Accrued interest, related party

 

98,982

 

 

 

 

Other accrued expenses

 

468,652

 

 

 

 

Loans payable, current

 

1,505,070

 

 

 

 

Related party loans, current

 

5,610,000

 

 

 

 

Earnout liability

 

8,000,000

 

 

 

 

Deferred income taxes

 

5,536,923

 

 

 

 

Total liabilities available for sale

$

29,874,831

 

 

$

 

The significant components of discontinued operations in the accompanying consolidated statements of income are as follows:

 

 

Year Ended December 31,

 

 

2023

 

 

2022

 

Revenue

$

4,456,816

 

 

$

 

Cost of sales

 

3,620,651

 

 

 

 

Gross profit

 

836,165

 

 

 

 

Operating expenses:

 

 

 

 

 

Selling and marketing

 

6,829,520

 

 

 

 

Research and development

 

403,616

 

 

 

 

General and administrative

 

2,525,715

 

 

 

 

Depreciation and amortization

 

1,015,894

 

 

 

 

Total operating expenses

 

10,774,745

 

 

 

 

Loss from operations

 

(9,938,580

)

 

 

 

Other income (expense):

 

 

 

 

 

Other income

 

7

 

 

 

 

Amortization of debt discount

 

(7,070

)

 

 

 

Interest expense, related party

 

(164,611

)

 

 

 

Interest expense

 

(32,221

)

 

 

 

Inventory write-down

 

(4,754,357

)

 

 

 

Change in fair value of earnout liability

 

13,482,292

 

 

 

 

Total other (expense) income

 

8,524,040

 

 

 

 

Loss before income taxes

 

(1,414,540

)

 

 

 

Income tax benefit, deferred

 

2,174,705

 

 

 

 

Discontinued operations, net

$

760,165

 

 

$

 

 

NOTE 16 – Subsequent Events

 

As more fully described in Note 1, the Company entered into the Purchase Agreement on March 20, 2024 to sell AxoBio to its former stockholders. The sale transaction contemplated by the Purchase Agreement closed on March 26, 2024.