Discontinued Operations

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

NOTE 16 – Discontinued Operations

On March 20, 2024, the Company entered into the Purchase Agreement to sell AxoBio and closed on such sale on March 26, 2024, as detailed in Note 1. As of December 31, 2023, the assets and liabilities of AxoBio are classified as available for sale in the accompanying consolidated balance sheets. The assets and liabilities of AxoBio as of the closing of the AxoBio Disposition and December 31, 2023 are as follows:

	March 26, 2024		December 31, 2023
Assets available for sale
Cash and cash equivalents	$	30,001	$	804,277
Accounts receivable, net		4,495,200		7,713,600
Prepaid expenses		219,303		251,086
Inventories		3,036,107		3,038,179
Property and equipment, net		52,556		63,384
Intangible assets, net		21,636,947		22,262,568
Goodwill		19,188,278		19,188,278
Total assets available for sale	$	48,658,392	$	53,321,372
Liabilities available for sale
Accounts payable	$	6,612,869	$	8,520,243
Accrued interest		122,673		134,961
Accrued interest, related party		89,448		98,982
Other accrued expenses		72,581		468,652
Loans payable		1,509,312		1,505,070
Related party loans		5,610,000		5,610,000
Deferred consideration payable		8,000,000		8,000,000
Deferred income taxes		5,380,830		5,536,923
Total liabilities available for sale	$	27,397,713	$	29,874,831

The significant components of discontinued operations in the accompanying consolidated statements of income are as follows:

	For the Year Ended
	December 31,
	2024			2023
Revenue	$	—		$	4,456,816
Cost of sales		—			3,620,651
Gross profit		—			836,165
Operating expenses:
Selling and marketing		—			6,829,520
Research and development		89,972			403,616
General and administrative		470,686			2,525,715
Depreciation and amortization		636,449			1,015,894
Total operating expenses		1,197,107			10,774,745
Loss from operations		(1,197,107	)		(9,938,580	)
Other income (expense):
Other income		—			7
Amortization of debt discount		(4,242	)		(7,070	)
Interest expense, related party		(89,448	)		(164,611	)
Interest expense		(17,571	)		(32,221	)
Inventory write-down		—			(4,754,357	)
Change in fair value of earnout liabilities		—			13,482,292
Total other (expense) income		(111,261	)		8,524,040
Loss before income taxes		(1,308,368	)		(1,414,540	)
Income tax benefit, deferred		156,092			2,174,705
Discontinued operations, net	$	(1,152,276	)	$	760,165