Discontinued Operations

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

Note 2. DISCONTINUED OPERATIONS

As discussed in Note 1, the Company closed EPC and ECC as of March 31, 2019. Also, as discussed in Note 1, the Company sold WMI in December 2018. As such, these subsidiaries are reported as discontinued operations for the years ended December 31, 2019 and 2018. As required, the Company has retrospectively recast its consolidated statements of operations and balance sheets for all periods presented. The Company has not segregated the cash flows of these subsidiaries in the consolidated statements of cash flows. Management was also required to make certain assumptions and apply judgment to determine historical expenses related to the discontinued operations presented in prior periods. Unless noted otherwise, discussion in the Notes to Consolidated Financial Statements refers to the Company's continuing operations only.

The following table presents a reconciliation of the major financial lines constituting the results of operations for discontinued operations to the net loss from discontinued operations presented separately in the consolidated statement of operations:

	December 31,
	2019			2018
Net revenue		132,000			15,631,000
Cost of goods sold		105,000			15,406,000
Gross profit		27,000			225,000
Operating expenses:
Selling, general and administrative		155,000			1,830,000
Impairment of Goodwill		-			(109,000	)
Impairment on abandonment of assets		-			(386,000	)
Total operating expenses		(128,000	)		(2,100,000	)
Interest expense		(3,000	)		(4,000	)
Other income (expense), net		(3,000	)		7,000
Loss from discontinued operations before income taxes		(134,000	)		(2,097,000	)
Provision for income taxes		-			(3,000	)
Loss from discontinued operations, net of taxes		(134,000	)		(2,100,000	)

The following table presents a reconciliation of WMI's net cash flow from operating, investing and financing activities for the periods indicated below:

	2019			2018
Net cash used in operating activities - discontinued operations	$	(149,000	)	$	(439,000	)
Net cash used in investing activities - discontinued operations	$	-		$	49,000
Net cash provided by financing activities - discontinued operations	$	-		$	475,000
Depreciation and amortization	$	(6,000	)	$	156,000