Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

Discontinued Operations

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Note 15 – Discontinued Operations

EPIC Reference Labs, Inc. and Other Non-Operating Subsidiaries

During the third quarter of 2020, the Company made a decision to sell EPIC and to discontinue several other non-operating subsidiaries. During the fourth quarter of 2024, the Company discontinued several additional non-operating subsidiaries. As a result, EPIC’s and the other non-operating subsidiaries’ liabilities have been included in discontinued operations for all periods presented. The Company was unable to find a buyer for EPIC and, therefore, it has ceased all efforts to sell EPIC and closed down its operations.

Carrying amounts of major classes of liabilities of EPIC and the other non-operating subsidiaries included as part of discontinued operations in the consolidated balance sheets as of December 31, 2023 and 2022 consisted of the following:

	December 31, 2023		December 31, 2022

Accounts payable	$	1,425,083	$	1,425,083
Accrued expenses ⁽¹⁾		7,666,630		520,051
Finance lease obligation ⁽²⁾		220,461		220,461
Current liabilities of discontinued operations	$	9,312,174	$	2,165,595

⁽¹⁾	Included in accrued expenses at December 31, 2023 was $7.3 million awarded to CIGNA Health under the terms of a lawsuit, which is more fully discussed in Note 14.

⁽²⁾	As of December 31, 2023 and 2022, the Company was in default under the finance lease obligation. Therefore, the aggregate future minimum lease payments under this finance lease totaling $0.2 million are deemed to be immediately due.

Line items constituting (loss) income from discontinued operations in the consolidated statements of operations for the years ended December 31, 2023 and 2022 consisted of the following:

Consolidated (Loss) Income from Discontinued Operations:

	2023			2022
	Year Ended December 31,
	2023			2022

Other (expense) income, net ⁽¹⁾	$	(7,195,076	)	$	56,844
Provision for income taxes		-			-
(Loss) income from discontinued operations	$	(7,195,076	)	$	56,844

⁽¹⁾	Included in other expense for the year ended December 31, 2023 was $7.3 million awarded to CIGNA Health under the terms of a lawsuit, which is more fully discussed in Note 14.