| Schedule of discontinued operations to assets and liabilities held for sale |
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December 31,
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2018
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Accounts receivable, net
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$
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270,768
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Inventories, net
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131,342
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Prepayments and other current assets
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22,322
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Property and equipment, net
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329,738
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Intangible assets, net
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342,153
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Current assets held for sale (1)
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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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356,113
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Accrued expenses
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521,642
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Current liabilities held for sale
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$
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877,755
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(1)
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The assets of the discontinued operations classified as held for sale are classified as current on the December 31, 2018 balance sheet as it was deemed probable that the sale would occur and proceeds would 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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Nine months ended
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September 30,
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September 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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—
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$
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342,661
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$
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115,000
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$
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1,144,103
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Cost of revenue
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1,337
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552,127
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141,647
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1,471,890
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Research and development
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12,613
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527,631
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197,663
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1,774,193
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General and administrative
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40,332
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9,513
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79,306
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33,762
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Sales and marketing
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24,514
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264,705
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59,431
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588,937
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Impairment (1)
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—
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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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(78,796)
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$
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(1,011,315)
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$
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(768,047)
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$
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(2,724,679)
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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 were 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. For the three and nine months ended September 30, 2019, the Company recorded a loss on the sale of discontinued operations of $9,107.
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