| Schedule of discontinued operations to assets and liabilities held for sale |
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June 30,
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December 31,
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2019
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2018
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Accounts receivable, net
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$
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2,500
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$
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270,768
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Inventories, net
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129,017
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131,342
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Prepayments and other current assets
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6,182
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22,322
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Property and equipment, net (1)
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255,709
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329,738
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Intangible assets, net (1)
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—
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342,153
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Current assets held for sale (2)
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$
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393,408
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$
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1,096,323
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Accounts payable
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$
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8,199
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$
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356,113
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Accrued expenses
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465,487
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521,642
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Current liabilities held for sale
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$
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473,686
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$
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877,755
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(1)
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Includes an impairment charge of $765,000 of which $405,000 was recognized during the six months ended June 30, 2019, calculated as the net book value of assets held for sale prior to the impairment less the expected net proceeds from the planned sale. The expected net proceeds are based on the estimated fair value of the net assets held for sale less the estimated cost to sell the net assets held for sale.
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(2)
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The assets of the discontinued operations classified as held for sale are classified as current on the June 30, 2019 and December 31, 2018 balance sheets because it is probable that the sale will occur and proceeds will be collected within one year.
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The following is a reconciliation of the major classes of line items constituting loss from discontinued operations to loss from discontinued operations shown in the Statement of Operations:
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2019
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2018
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2019
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2018
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Revenue
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$
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1,500
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$
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619,942
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$
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115,000
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$
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801,442
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Cost of revenue
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41,542
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584,800
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140,310
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919,763
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Research and development
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24,766
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583,323
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185,050
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1,246,562
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General and administrative
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13,468
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14,360
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38,974
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24,249
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Sales and marketing
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(1,200)
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69,989
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34,917
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324,232
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Impairment (1)
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265,000
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—
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405,000
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—
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Loss from discontinued operations
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$
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(342,076)
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$
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(632,530)
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$
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(689,251)
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$
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(1,713,364)
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(1)
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Impairment charge was calculated as the net book value of assets held for sale prior to the impairment less the expected net proceeds from the planned sale. The expected net proceeds are based on the estimated fair value of the net assets held for sale less the estimated cost to sell the net assets held for sale.
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