Discontinued Operations

12 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

17. Discontinued Operations

Because it was determined the assets of FHV LLC were insufficient to satisfy FHV LLC’s obligations to creditors, as of September 28, 2018, FHV LLC executed an Assignment for the Benefit of Creditors under California law, whereby all of the assets of FHV LLC have been assigned to a third party fiduciary who will liquidate such assets and distribute the proceeds to FHV LLC’s creditors pursuant to the priorities established and permitted by law.

Discontinued operations for the twelve months ended June 30, 2019 and 2018 consist of the operations from the FHV LLC subsidiary.

Gain (Loss) from Discontinued Operations
	For the twelve months ended June 30,
	2019			2018
Revenues:
Vending machine sales, net	$	-		$	178,110
Franchise fees		-			15,475
Company owned machine sales		-			-
Royalties		8,041			296,422
Other		2,050			59,159
Total revenue, net		10,091			549,166
Cost of revenues		5,237			182,286
Gross margin		4,854			366,880
Operating expenses:
Personnel		-			987,805
Marketing		-			28,981
Professional fees		26,451			6,927
Insurance		-			48,589
Rent		6,199			45,235
Depreciation and amortization		-			11,624
Stock compensation		-			155,953
Research and development		-			3,000
Provision for legal settlement		-			446,894
Other		6			151,432
Total operating expenses		32,656			1,886,440
Income (loss) from operations		(27,802	)		(1,519,560	)
Other expenses:
Interest expense		-			(154,660	)
Derivative liability income (expense)		-			(220,003	)
Loss before provision for income taxes		(27,802	)		(1,894,223	)
Provision for income taxes		-			-
Loss from operations		(27,802	)		(1,894,223	)
Gain from disposition of operations		169,304			-
Net gain (loss)	$	141,502		$	(1,894,223	)
See accompanying notes to the unaudited condensed consolidated financial statements.

The following table lists the assets of discontinued operations and liabilities of discontinued operations as of June 30, 2019 and 2018 for FHV LLC.

Assets and Liabilities of Discontinued Operations

	June 30, 2019 (unaudited)		June 30, 2018 (audited)
Current assets:
Cash	$	-	$	26,417
Restricted cash		-		1,500
Accounts receivable, net of allowance for doubtful accounts of $174,011		-		18,451
Inventory on-hand, net of allowance for obsolete inventory of $100,000		-		246,296
Current assets held for disposition	$	-	$	292,664
Current liabilities:
Accounts payable and accrued liabilities	$	-	$	280,159
Contract liabilities - customer advances and deferred revenues		-		515,517
Provision for franchisee rescissions and refunds		-		496,000
Total current liabilities	$	-	$	1,291,676