Sale of In-Store Marketing Business and Presentation as Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2023

Sale of In-Store Marketing Business and Presentation as Discontinued Operations

Summary of gain on sale of buiness

Gross sale price	$	3,500,000
Adjustments per Purchase Agreement		(1,555,000	)
Adjusted Price		1,945,000
Liabilities assumed in excess of assets		1,308,000
Transaction costs not previously expensed		(209,000	)
Gain on sale of In-Store Marketing Business	$	3,044,000

Summary of balance sheet adjustments

	December 31,		December 31,
	2023		2022
Current Assets:
Accounts receivable	$	292,000	$	5,557,000
Inventories		-		29,000
Prepaid production costs		-		535,000
Other prepaid expense		-		50,000
Current assets related to discontinued operations	$	292,000	$	6,171,000
Other Assets:
Property and equipment, net	$	-	$	71,000
Operating lease right-of-use assets		-		144,000
Non-current assets related to discontinued operations	$	-	$	215,000
Current Liabilities:
Accounts payable	$	7,000	$	2,515,000
Sales tax		169,000		717,000
Accrued liabilities		81,000		1,003,000
Current portion of operating lease liabilities		-		4,000
Deferred revenue		-		2,427,000
Current liabilities related to discontinued operations	$	257,000	$	6,666,000
Long-Term Liabilities:
Operating lease liabilities	$	-	$	140,000
Non-current liabilities related to discontinued operations	$	-	$	140,000

Summary of operations adjustments

Years Ended December 31	2023			2022
Net services revenues	$	21,078,000		$	18,800,000
Cost of services		16,087,000			15,499,000
Gross Profit		4,991,000			3,301,000
Operating Expenses:
Selling		1,136,000			1,325,000
Marketing		805,000			1,050,000
General and administrative		679,000			878,000
Total Operating Expenses		2,620,000			3,253,000
Gain from litigation settlement, net		-			12,000,000
Operating Income		2,371,000			12,048,000
Other income		91,000			68,000
Income from discontinued operations before income taxes		2,462,000			12,116,000
Income tax benefit		(12,000	)		(224,000	)
Income from discontinued operations, net of tax	$	2,474,000		$	12,340,000
Gain from sale of discontinued operations before income taxes	$	3,044,000		$	-
Income tax expense		83,000			-
Gain from sale of discontinued operations, net of tax	$	2,961,000		$	-