NOTE 16 – DISCONTINUED OPERATIONS
During the prior period presented,
the Company executed actions to abandon its pharmaceutical research operations and the Gaming Technology Platform which met the criteria
to be classified as discontinued operations in accordance with ASC 205-20, Presentation of Financial Statements – Discontinued
Operations (“ASC 205-20”).
Financial Information of Discontinued Operations
Summarized balance sheet
information of discontinued operations is below (in thousands):
| | |
June 30,
2026 | | |
December 31,
2025 | |
| Cash and cash equivalents | |
$ | 340 | | |
$ | 12 | |
| Prepaid expenses and other current assets | |
| - | | |
| 10 | |
| Current assets of discontinued operations | |
| 340 | | |
| 22 | |
| Intangible assets1 | |
| - | | |
| - | |
| Total assets of discontinued operations | |
$ | 340 | | |
$ | 22 | |
| | |
| | | |
| | |
| Accounts payable | |
$ | 26 | | |
$ | 8 | |
| Accounts payable – related parties | |
| - | | |
| 1,185 | |
| Accrued expenses | |
| 329 | | |
| 32 | |
| Loan payable –current portion | |
| - | | |
| 7 | |
| Current liabilities of discontinued operations | |
| 355 | | |
| 1,232 | |
| Loan payable –noncurrent portion | |
| - | | |
| - | |
| Total liabilities of discontinued operations | |
$ | 355 | | |
$ | 1,232 | |
| (1) | Consists of Gaming Technology Platform intangible assets pursuant to the September 2024 Asset Purchase Agreement with Elray, which were impaired in full during the year ended December 31, 2025. |
The statements of operations of discontinued
operations are summarized below (in thousands):
| | |
For the Three Months Ended | | |
For the Six Months Ended | |
| | |
June 30, | | |
June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Research and development | |
$ | - | | |
$ | (182 | ) | |
$ | - | | |
$ | (423 | ) |
| Research and development - related parties | |
| - | | |
| (140 | ) | |
| - | | |
| (276 | ) |
| General and administrative | |
| (198 | ) | |
| (56 | ) | |
| (518 | ) | |
| (85 | ) |
| Loss from operations | |
| (198 | ) | |
| (378 | ) | |
| (518 | ) | |
| (784 | ) |
| Other income | |
| - | | |
| - | | |
| 22 | | |
| - | |
| Interest expense | |
| - | | |
| (3 | ) | |
| - | | |
| (5 | ) |
| Gain (loss) on settlement of liabilities | |
| (199 | ) | |
| - | | |
| 1,369 | | |
| - | |
| Net income (loss) from discontinued operations | |
$ | (397 | ) | |
$ | (381 | ) | |
$ | 873 | | |
$ | (789 | ) |
|