GeoTraq (Tables)

12 Months Ended

Dec. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations

The following table details the final calculation of the gain on sale of the Recycling Subsidiaries, as shown on the income statement (in $000’s):

Total minimum consideration	$	6,023
Payment from buyer	3
Net consideration	$	6,026
Accounts payable	5,323
Accrued liabilities	1,857
Accrued liabilities - California state sales tax	6,320
Lease liabilities	5,285
Debt	2,139
Accumulated other comprehensive loss	(604)
Total disposal of liabilities	20,320
Total consideration	26,346
Cash	145
Accounts receivable	4,884
Inventory	67
Property, plant and equipment	2,767
Intangible assets	732
Right-of-use assets	5,075
Other assets	574
Total disposal of assets	14,244
Total gain on sale	$	12,102

The following table illustrates the calculation of the gain on sale of GeoTraq, including the charges to income referenced above, as shown on the income statement (in $000’s):

Purchase price	$	13,500
Discount on note receivable	(4,013)
Premium on shares received	46
Derecognition of GeoTraq inventory	(105)
Gain on sale	$	9,428

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 (in $000’s):

	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 (in $000’s):

	Useful Life (Years)	December 31, 2022
Buildings and improvements	3 - 30	$	69
Equipment	3 - 15	2,556
Projects under construction		1,447
Property and equipment		4,072
Less accumulated depreciation		(1,367)
Total property and equipment, net, from discontinued operations		$	2,705

2 The Company’s intangible assets consisted of the following (in $000’s):

	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 (in $000’s):

	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 (in $000’s):

	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 (in $000’s):

	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 (in $000’s):

	December 31, 2022
KLC Financial	$	1,781
KLC Financial loan origination fees	(61)
Total	1,720
Less current portion	(381)
Total	$	1,339

The Company’s related party debt consisted of the following (in $000’s):

	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 year ended December 30, 2023 and December 31, 2022, respectively, have been reflected as discontinued operations in the consolidated statements of operations and comprehensive income (loss) and consist of the following (in $000’s):

	December 30, 2023		December 31, 2022
Revenues	$	3,795	$	39,611
Cost of revenues	3,992		31,992
Gross profit	(197)		7,619
Operating expenses from discontinued operations:
Selling, general and administrative expenses	1,467		8,652
Gain on sale of ARCA	(12,102)		—
Gain on sale of GeoTraq	—		(9,428)
Total operating expenses from discontinued operations	(10,635)		(776)
Operating income from discontinued operations	10,438		8,395
Other expense from discontinued operations
Interest expense, net	(181)		(957)
Loss on litigation settlement	—		(1,008)
Other expense, net	(3)		(1,349)
Total other expense, net	(184)		(3,314)
Income before provision for income taxes from discontinued operations	10,254		5,081
Income tax provision	971		2,109
Net income from discontinued operations	$	9,283	$	2,972

The cash flow activity from discontinued operations for the year ended December 30, 2023 and December 31, 2022 have been reflected as discontinued operations in the consolidated statements of cash flows and consist of the following (in $000’s):

	December 30, 2023		December 31, 2022
DISCONTINUED OPERATING ACTIVITIES:
Net income from discontinued operations	9,283		2,972
Depreciation and amortization	96		555
Amortization of debt issuance costs	11		31
Loss on litigation settlement	—		1,009
Amortization of right-of-use assets	52		55
Gain on sale of ARCA, net of cash	(12,248)		—
Gain on sale of GeoTraq	—		(9,428)
Changes in assets and liabilities:
Accounts receivable	2,932		1,482
Inventories	299		738
Prepaid expenses and other current assets	56		583
Accounts payable and accrued expenses	1,837		(454)
Other assets	1		(44)
Net cash provided by (used in) operating activities from discontinued operations	$	2,319	$	(2,501)
DISCONTINUED INVESTING ACTIVITIES:
Purchases of property and equipment	(123)		(808)
Purchase of intangible assets	(32)		(701)
Net cash used in investing activities from discontinued operations	$	(155)	$	(1,509)
DISCONTINUED FINANCING ACTIVITIES:
Proceeds from note payable	5,162		17,545
Payments on related party note	(38)		(162)
Payments on notes payable	(7,336)		(13,390)
Net cash used in (provided by) financing activities from discontinued operations	$	(2,212)	$	3,993
Effect of changes in exchange rate on cash and cash equivalents	(5)		(4)
DECREASE IN CASH AND CASH EQUIVALENTS	(53)		(21)
CASH AND CASH EQUIVALENTS, beginning of period	53		74
CASH AND CASH EQUIVALENTS, end of period	$	—	$	53