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PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

7. PROPERTY AND EQUIPMENT, NET

 

At December 31, 2020 and 2019, property and equipment consist of:

 

    December 31,  
    2020     2019  
Cryptocurrency machines and related equipment   $ 567,216     $ 567,216  
Computer, software and related equipment     3,056,711       2,518,187  
Office furniture and equipment     489,315       441,613  
Leasehold improvements     1,352,124       1,230,407  
      5,465,366       4,757,423  
Accumulated depreciation and amortization     (3,342,636 )     (2,970,030 )
Property and equipment, net   $ 2,122,730     $ 1,787,393  

 

Under the guidance of ASC 360, Impairment or Disposal of Long-lived Assets, a long-lived asset or asset group (including intangibles) will be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. During the first quarter of 2020, based upon the deteriorating business conditions for restaurants in the San Diego County as result of the spread of COVID-19 and the decline in projected cash flows over the life of the restaurant equipment, the Company performed an undiscounted cash flow test to determine if the restaurant equipment was impaired. The undiscounted cash flows were less than the carrying amount of the Company’s restaurant equipment and therefore, the carrying amount of the assets were compared to the fair value of the restaurant equipment, and the Company determined that there were impairment charges to be recorded on the restaurant equipment. Impairment charges for the year ended December 31, 2020 were in an amount equal to the cost of the Company’s restaurant equipment, net of depreciation of $504,802, and are included as a component of net loss from discontinued operations (see Note 4).

 

For the years ended December 31, 2020 and 2019, depreciation expense amounted to $391,597 and $2,570,511, respectively.