XML 26 R10.htm IDEA: XBRL DOCUMENT
v3.21.1

DISCONTINUED OPERATIONS AND DECONSOLIDATION OF I.AM | 12 Months Ended
--- | ---
Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS AND DECONSOLIDATION OF I.AM | 4. Discontinued Operations and Deconsolidation of I.AM 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 the Company’s restaurant businesses, during the first quarter of 2020, the Company concluded that discontinuing the operations of I.AM was ultimately in its best interest. In addition, during the first quarter of 2020, due to deteriorating business conditions in the cryptocurrency mining sector, the Company ceased operations at Digital Farms. The Company’s decision to cease cryptocurrency mining operations in 2020 was based several factors, which had negatively affected the number of active miners the Company operated, including the market prices of digital currencies at the time, power cost considerations available to Digital Farms, and a significant increase in the difficulty of mining blocks of cryptocurrency. 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 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 consolidated balance sheets for all periods presented. On November 2, 2020, I.AM filed a voluntary petition for bankruptcy under Chapter 7 in the United States Bankruptcy Court in the Central District of California, Santa Ana Division, case number 8:20-bk-13076. As a result of I.AM’s bankruptcy filing on November 2, 2020, Ault Global ceded authority for managing the business to the Bankruptcy Court. For this reason, the Company concluded that Ault Global had lost control of I.AM, and no longer had significant influence over I.AM. Therefore, the Company deconsolidated I.AM effective with the filing of the Chapter 11 bankruptcy in November 2020 and recorded a gain on deconsolidation of 2,358,992. The following tables summarize the major classes of assets and liabilities included as part of discontinued operations as of December 31, 2019:
|  | December 31, 2019 |
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 |  | $ | 881,601 |
Operating lease liability, current |  |  | 229,574 |
Other current liabilities |  |  | 482,375 |
Total current liabilities classified as held for sale |  |  | 1,593,550 |
Long term liabilities |  |  |  |
Operating lease liability, non-current |  |  | 951,072 |
Total liabilities classified as held for sale |  | $ | 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 Year Ended |
|  | December 31, |
|  | 2020 |  |  | 2019 |
Revenue |  | $ | 543,327 |  |  | $ | 4,149,646 |
Cost of revenue |  |  | (160,310 | ) |  |  | (1,149,645 | )
Selling and marketing |  |  | — |  |  |  | (221,813 | )
General and administrative |  |  | (555,445 | ) |  |  | (4,146,815 | )
Impairment of property and equipment and right-of-use assets |  |  | (1,525,316 | ) |  |  | — |
Impairment of Impairment of intangible assets |  |  | — |  |  |  | (610,000 | )
Impairment of goodwill |  |  | — |  |  |  | (265,252 | )
Gain on deconsolidation of I.AM |  |  | 2,358,992 |  |  |  | — |
Interest expense |  |  | — |  |  |  | (789 | )
Income (loss) from discontinued operations |  | $ | 661,248 |  |  | $ | (2,244,668 | )

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration