|12 Months Ended|
Dec. 31, 2021
|Discontinued Operations and Disposal Groups [Abstract]|
Note 20 — Discontinued Operations
Discontinued operations are accounted for in accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification Section 360-10-35 Property, Plant and Equipment. In accordance with FASB ASC Section 360-10-35, the net assets of discontinued operations are recorded on our consolidated balance sheets at carrying value. The results of operations of discontinued operations are segregated from continuing operations and reported separately as discontinued operations in our consolidated statements of operations.
On March 12, 2021, the bankruptcy court approved the sale of the CBAV1, LLC Assets to BTL Diffusion SARL, the winning bidder, at the auction held on March 10, 2021 and March 11, 2021 for a total sum of $3,000,000, which includes a cash payment at closing in the amount of $2,650,000, less certain closing costs and credits, and additional royalty payments in the amount of $150,000 on April 15, 2022 and in the amount of $200,000 on April 15, 2023.
A first closing of the CBAV1-BTL Transaction occurred on April 16, 2021, with the transfer of assets and release of funds completed on April 21, 2021. Contemporaneously with the Final Closing, a certain license agreement between CBAV1 and Edison Nation terminated and any remaining operational assets of Edison Nation were transferred to BTL.
On November 30, 2020, the Company and its wholly owned subsidiary, SRM entered into a Stock Exchange Agreement with Jupiter Wellness, Inc.. Under the terms of the Exchange Agreement, Jupiter agreed to purchase all outstanding shares of common stock issued by SRM from the Company. As consideration for the purchase of the Exchange Shares, Jupiter agreed to exchange shares of its restricted common stock, symbol JUPW as listed on NASDAQ Capital Markets. The Company made the decision to divest the amusement park business due to the slow re-openings of amusement parks around the world and the investment that would have been needed to remain open and the investment required to relaunch as the amusement parks begin to get back to full capacity.
The following table presents the carrying values of the assets and liabilities of our discontinued operations at December 31, 2021 and 2020, respectively:
Schedule of Balance Sheets and Income Operations of Discontinued Operations
The following table presents the summary results of operations of our discontinued operations for the years ended December 31, 2021 and 2020, respectively:
The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef