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3. Discontinued Operations | 12 Months Ended
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Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Prior to October 2019, we operated a number of company-owned offices which were acquired in the Merger with Command Center. All of these company-owned offices were sold in the third quarter of 2019, the vast majority becoming franchisees, and we now no longer operate any company-owned offices. We also made the strategic decision to sell the assets of Command Center’s four California offices outside of our franchise system to an unaffiliated third party, and we no longer conduct business in the state of California. A summary of total consideration received, and assets sold is as follows:
Notes receivable |  | $ | 14,884,620 |
Accounts receivable |  |  | 2,204,286 |
Cash |  |  | 221,845 |
Consideration received |  | $ | 17,310,751 |
Customer lists |  | $ | 17,015,857 |
Lease and utility deposits |  |  | 100,009 |
Fixed assets |  |  | 57,448 |
Gain |  |  | 137,437 |
Sale price allocation |  | $ | 17,310,751 |
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:
|  | Year ended |
|  | December 31, 2020 |  |  | December 31, 2019 |
Revenue |  | $ | - |  |  | $ | 13,932,769 |
Cost of staffing services |  |  | - |  |  |  | 9,946,836 |
Gross profit |  |  | - |  |  |  | 3,985,933 |
Gain on sale |  |  | - |  |  |  | 137,437 |
Selling, general and administrative expense |  |  | - |  |  |  | (3,836,045 | )
Net income before tax |  |  | - |  |  |  | 287,325 |
Provision for income taxes |  |  | - |  |  |  | 71,831 |
Net income |  | $ | - |  |  | $ | 215,494 |
We continue to be involved with the offices we sold through franchise agreements. The term of our franchise agreement is five years, subject to renewal at the end of the current term. Franchise royalties from sold locations that subsequently became franchisees were approximately $3.0 million and $1.4 million, for the years ended December 31, 2020 and December 31, 2019, respectively.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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