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Discontinued Operations | 9 Months Ended
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Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | 4. Discontinued Operations On March 16, 2020, to try and mitigate the spread of COVID-19, San Diego County health officials issued orders mandating that all restaurants must end dine-in services. As a result of these temporary closures and the deteriorating business conditions at both the Company’s cryptocurrency mining and restaurant businesses, the Company concluded that discontinuing the operations of Digital Farms and I.AM was ultimately in its best interest. Digital Farms was established to pursue a variety of digital currencies and mined the top three cryptocurrencies for its own account. Although the Company has ceased operations at Digital Farms, since the assets and operations have not yet been abandoned, sold or distributed, these assets do not yet meet the requirement for presentation as discontinued operations. In the first quarter of 2020, management determined that the permanent closing of the restaurant operations met the criteria for presentation as discontinued operations. Accordingly, the results of the restaurant operations are presented as discontinued operations in our condensed consolidated statements of operations and comprehensive loss and are excluded from continuing operations for all periods presented. In addition, the assets and liabilities of the restaurant operations are classified as held for sale in our condensed consolidated balance sheets for all periods presented. The following tables summarize the major classes of assets and liabilities included as part of discontinued operations:
|  | September 30, |  |  | December 31, |
|  | 2020 |  |  | 2019 |
|  | (Unaudited) |  |  |  |
Current assets |  |  |  |  |  |
Cash and cash equivalents |  | $ | — |  |  | $ | 5,170 |
Accounts receivable |  |  | — |  |  |  | 83,885 |
Inventories, net |  |  | — |  |  |  | 60,341 |
Prepaid expenses and other current assets |  |  | — |  |  |  | 131,956 |
Total current assets classified as held for sale |  |  | — |  |  |  | 281,352 |
Property and equipment, net |  |  | — |  |  |  | 504,802 |
Right-of-use assets |  |  | — |  |  |  | 1,098,466 |
Total assets classified as held for sale |  | $ | — |  |  | $ | 1,884,620 |
Current liabilities |  |  |  |  |  |  |  |
Accounts payable and accrued expenses |  | $ | 788,314 |  |  | $ | 881,601 |
Operating lease liability, current |  |  | 322,125 |  |  |  | 229,574 |
Other current liabilities |  |  | 461,738 |  |  |  | 482,375 |
Total current liabilities classified as held for sale |  |  | 1,572,177 |  |  |  | 1,593,550 |
Long term liabilities |  |  |  |  |  |  |  |
Operating lease liability, non-current |  |  | 786,815 |  |  |  | 951,072 |
Total liabilities classified as held for sale |  | $ | 2,358,992 |  |  | $ | 2,544,622 |
The restaurant operations are included in our results as discontinued operations through March 16, 2020, the date of closing of the restaurants. The following tables summarize the major classes of line items included in loss from discontinued operations:
|  | For the Three Months Ended |  |  | For the Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Revenue |  | $ | — |  |  | $ | 1,036,834 |  |  | $ | 543,327 |  |  | $ | 3,371,465 |
Cost of revenue |  |  | — |  |  |  | (293,765 | ) |  |  | (160,310 | ) |  |  | (908,256 | )
Selling and marketing |  |  | — |  |  |  | (61,618 | ) |  |  | — |  |  |  | (162,268 | )
General and administrative |  |  | — |  |  |  | (964,829 | ) |  |  | (555,445 | ) |  |  | (3,017,578 | )
Impairment of property and equipment |  |  | — |  |  |  | — |  |  |  | (1,525,316 | ) |  |  | — |
Interest expense |  |  | — |  |  |  | (789 | ) |  |  | — |  |  |  | (789 | )
Loss from discontinued operations |  | $ | — |  |  | $ | (284,167 | ) |  | $ | (1,697,744 | ) |  | $ | (717,426 | )

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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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