Discontinued Operations

3 Months Ended

Jun. 30, 2020

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

NOTE 3. DISCONTINUED OPERATIONS

As discussed in Note 1. Basis of Presentation above, on April 30, 2020, the Company completed the divestment of Lvxin and the requirements for the presentation of Lvxin as a discontinued operation were met on that date. Accordingly, Lvxin's historical financial results are reflected in the Company's unaudited condensed consolidated financial statements as discontinued operations. The Company did not allocate any general corporate overhead or interest expense to discontinued operations.

The financial results of Lvxin are presented as income (loss) from discontinued operations, net of income taxes in the unaudited Condensed Consolidated Statements of Operations. The following table presents the financial results of Lvxin. 

	Three months ended
	June 30, 2020		June 30, 2019
	(Unaudited)		(Unaudited)
Net sales	$	37,317	$	114,964
Cost of sales		36,574		122,401
Gross profit		743		(7,437	)
Selling, general and administrative expenses		-		395
Operating income (loss)		743		(7,832	)
Other income		-		440
Income (loss) before income taxes		743		(7,392	)
Income tax (expense) benefit		-		-
Income (loss) from discontinued operations, net of income taxes		743		(7,392	)
Less: Net income (loss) attributable to non-controlling interest		364		(3,622	)
Net income (loss) from discontinued operations attributable to controlling interest	$	379	$	(3,770	)

The following table summarizes the carrying value of major classes of assets and liabilities of Lvxin, reclassified as assets and liabilities of discontinued operations at March 31, 2020.

	March 31, 2020
ASSETS
Cash and cash equivalents	$	1,340
Inventories, net		557,085
Total current assets, discontinued operations		558,425
Operating lease right-of-use assets		1,981,547
Total non-current assets, discontinued operations	$	2,539,972
LIABILITIES
Due to related parties	$	37,146
Operating lease liabilities (current)		298,259
Total current liabilities, discontinued operations		335,405
Operating lease liabilities (non-current)		1,424,600
Total non-current liabilities, discontinued operations	$	1,760,005