Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.20.1
Discontinued Operations
3 Months Ended
Mar. 31, 2020
DropCar Operating Services OnDemand [Member]  
Discontinued Operations

DropCar Operating

 

On December 19, 2019, the Company entered into the Asset Purchase Agreement to sell substantially all of the assets associated with the DropCar Operating business. Operating results for the three months ended March 31, 2020 and 2019 for the DropCar Operating business are presented as discontinued operations and the assets and liabilities classified as held for sale are presented separately in the balance sheet.

 

A breakdown of the discontinued operations is presented as follows:

 

   

For the

Three Months Ended

March 31,

 
    2020     2019  
SERVICE REVENUES   $ 1,012,261     $ 1,099,443  
COST OF REVENUE     842,642       1,127,045  
GROSS PROFIT (LOSS)     169,619       (27,602 )
                 
OPERATING EXPENSES                
   Research and development     42,634       68,982  
   General and administrative     333,069       1,129,025  
   Depreciation and amortization     78,760       107,749  
     TOTAL OPERATING EXPENSES     454,463       1,305,756  
                 
     OPERATING LOSS     (284,844 )     (1,333,358 )
                 
Other income, net     300       1,724  
                 
LOSS FROM DISCONTINUED OPERATIONS   $ (284,544 )   $ (1,331,634 )

 

Assets and liabilities of discontinued operations held for sale included the following:

 

   

March 31,

2020

   

December 31,

2019

 
             
Cash   $ 65,807     $ 81,457  
Accounts receivable, net     96,665       210,671  
Prepaid expenses and other current assets     35,430       83,058  
     Current assets held for sale   $ 197,902     $ 375,186  
                 
Property and equipment, net   $ 23,191     $ 25,723  
Capitalized software costs, net     364,116       410,261  
Operating lease right-of-use asset     -       1,886  
Other assets     3,525       3,525  
     Noncurrent assets held for sale   $ 390,832     $ 441,395  
                 
Accounts payable and accrued expenses     671,856       737,862  
Deferred revenue     240,616       302,914  
Current liabilities held for sale   $ 912,472     $ 1,040,776