DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2023

Note 4

DISCONTINUED OPERATIONS

Helix Businesses Discontinued Operations

On February 10, 2023, Helix completed the sale of 100% of the outstanding capital stock of its wholly owned subsidiary, BioTrack, in exchange for $30,000,000, consisting of $20,000,000 paid at closing and $10,000,000 paid in twelve unconditional monthly installments thereafter. In March 2022, Helix sold its security monitoring business and in October 2022, sold its Argentinian subsidiary Engeni LLC. The security monitoring business, BioTrack and Engeni are collectively referred to as the “Helix Businesses.” As a result of these transactions, as of February 10, 2023, the Company no longer provides products or services to the cannabis industry. The Company continues to provide analytics solutions to customers in the healthcare and life sciences industries.

As the sale of BioTrack, the security monitoring business and Engeni, LLC, together, represented a strategic shift that will have a major effect on the Company’s operations and financial results, they have been presented in discontinued operations separate from continuing operations for the years ended December 31, 2023 and 2022, as applicable.

The Company recognized a gain on sale of BioTrack of $11,531,849 and a loss from discontinued operations of $94,427 during the year ended December 31, 2023 which is included as part of discontinued operations. The Company also recorded income taxes related to discontinued operations of $2,064,165 during the year ended December 31, 2023.

The Company recorded a gain on the sale of assets related to its security monitoring business of $202,159 during the year ended December 31, 2022. The amount was reclassified to discontinued operations in 2023 as it was part of a strategic shift which became significant to the Company’s operations upon the sale of BioTrack.

The following table summarizes the major classes of assets and liabilities of the Helix Businesses as reported on the consolidated balance sheets as of December 31, 2022:

	December 31, 2022
Carrying amounts of assets associated with Helix Businesses included as part of discontinued operations:
Cash and cash equivalents	$	524,155
Accounts receivable, net		738,510
Prepaid expenses		131,023
Current assets of discontinued operations	$	1,393,688

Property and equipment, net	$	2,500,376
Intangible assets, net		6,775,841
Goodwill		9,099,372
Right of use assets, net		603,636
Deposits and other assets		58,649
Non-current assets of discontinued operations	$	19,037,874

Carrying amounts of liabilities associated with Helix Businesses included as part of discontinued operations:
Accounts payable	$	258,960
Accrued expenses		661,981
Short-term operating lease liabilities		243,888
Deferred revenues		497,418
Current liabilities of discontinued operations	$	1,662,247

Long-term operating lease liabilities		365,609
Non-current liabilities of discontinued operations	$	365,609

The following table summarizes the major income and expense line items of the Helix Businesses as reported in the consolidated statements of operations for the years ended December 31, 2023 and 2022, 2023 represents operations through the date of sale:

	For the Years Ended December 31,
	2023			2022
Income and expense line items related to Helix Businesses:
Revenues:
Information and Software	$	1,121,677		$	9,765,460
Services		179,798			1,548,000
Other		—			274,255
Total revenues		1,301,475			11,587,715

Costs and Expenses:
Cost of revenues		699,015			5,844,355
Research and development		160,164			3,944,023
Sales and marketing		35,005			1,739,830
General and administrative		129,283			4,411,907
Depreciation and amortization		372,435			2,826,989
Total costs and expenses		1,395,902			18,767,104

Loss from discontinued operations for Helix Businesses		(94,427	)		(7,179,389	)

Other Income (Expense):
Interest and investment income		—			59,682
Interest expense		—			(27,236	)
Foreign currency related gains, net		—			334,030
Total other income, net		—			366,476

Net loss from discontinued operations for Helix Businesses before income taxes		(94,427	)		(6,812,913	)
Gain on sale of discontinued operations		11,531,849			32,932
Income tax expense		(2,064,165	)		—

Net gain (loss) from discontinued operations, net of tax for Helix Businesses	$	9,373,257		$	(6,779,981	)