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3. Discontinued Operations

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Prior to September 2019, we operated a number of company-owned offices. Subsequently, all of these company-owned offices were sold, the vast majority becoming franchisees, and we now no longer operate any company-owned offices. Operating results from company-owned offices 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:

		Three months ended								Six months ended
		June 30, 2020				June 30, 2019				June 30, 2020				June 30, 2019
Revenue		$	-			$	202,579			$	-			$	382,326
Cost of staffing services			-				170,960				-				320,248
Gross profit			-				31,619				-				62,078
SG&A			-				4,443				-				8,634
Net income before tax			-				27,176				-				53,444
Provision for income taxes			-				6,794				-				13,361
Net income		$	-			$	20,382			$	-			$	40,083

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. Franchise royalties from sold locations that subsequently became franchisees for the three months ended June 30, 2020 and June 30, 2019 were approximately $570,000 and $-0-, respectively. For the six months ended June 30, 2020 and June 30, 2019, these franchise royalties were approximately $1.4 million and $-0-, respectively.