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3. Discontinued Operations
 3 Months Ended
Mar. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

Prior to September 2019, we operated a number of company-owned offices. Subsequently, all owned offices were sold. The vast majority of these offices became franchisees. As a result, we no longer operate any company owned offices and operating results from company-owned locations are included in our consolidated financial statements as discontinued operations. The income from discontinued operations as reported on our consolidated statements of operations was comprised of the following amounts:

 

    Quarter ended  
    March 31, 2020     March 31, 2019  
Revenue   $ -     $ 179,747  
Cost of staffing services     -       149,288  
Gross profit     -       30,459  
Gain on sale     -       -  
SG&A     -       4,190  
Net income before tax     -       26,269  
Provision (benefit) for income taxes     -       6,567  
Net income   $ -     $ 19,701  

 

We continue to be involved with the offices we sold through franchise agreements. The term of our franchise agreements is five years, subject to renewal at the end of the current term. For the quarter ended March 31, 2020 and March 31, 2019, approximately $783,000 and $-0- is included in royalty revenue in our consolidated statement of operations that originated from sold locations that subsequently became franchisees.