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Discontinued Operations and Assets and Liabilities Held For Sale
 12 Months Ended
Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE

NOTE 3 – DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES HELD FOR SALE

 

On January 29, 2018, the Company entered into a Legacy Asset Sale Agreement (the "Asset Sale Agreement") with Mark McLaughlin (the Company's former President and Chief Executive Officer) whereby the Company sold the assets of the legacy beta glucan business for $850,000. On February 7, 2018, the Company and Mr. McLaughlin entered into an amendment to the Asset Sale Agreement (the "Asset Sale Agreement Amendment") to amend the purchase price of the assets, whereby Mr. McLaughlin agreed, through a newly formed entity, to purchase the assets and liabilities of the yeast beta glucan manufacturing business, for the following: (i) 2,000,000 shares of the Company's common stock (valued at $0.23 per share or $460,000), payable on February 12, 2018, (the "Closing Date"), (ii) $190,000 payable on the Closing Date, (iii) $200,000 payable within 120 days following the Closing Date, and (iv) the waiver of all rights to any severance payment in the amount of $150,000. The total purchase price per the Asset Sale Agreement Amendment was $1,000,000. The total assets and liabilities transferred in the sale was $255,248, resulting in a gain on sale of $744,752.

 

Operating results for the year ended December 31, 2018, and 2017 for the yeast beta glucan manufacturing business are presented as discontinued operations and the assets and liabilities classified as held for sale are presented separately in the balance sheet.

 

A breakdown of the discontinued operations is presented as follows:

 

   Year Ended 
   December 31, 
   2018   2017 
Net Sales  $363,613   $1,372,879 
Cost of Sales   56,666    465,810 
Gross Profit   306,947    907,069 
Operating expenses   125,960    746,248 
Income from discontinued operations   180,987    160,821 
Gain on sale   744,752    - 
Net income from discontinued operations  $925,739   $160,821 

 

Assets and liabilities of discontinued operations held for sale included the following:

 

   December 31, 
   2017 
Current assets:     
Trade accounts receivable, net  $270,580 
Inventory, net   25,903 
   $296,483 
      
Current liabilities:     
Accounts payable and accrued expenses  $51,733 
   $51,733