Discontinued Operations (Tables)

9 Months Ended

Oct. 02, 2021

Discontinued Operations

Schedule income from discontinued operations

	Three Months Ended						Nine Months Ended
	October 2, 2021			October 3, 2020			October 2, 2021			October 3, 2020
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net sales	$	11,477,553		$	10,099,961		$	36,495,452		$	32,905,085
Cost of products sold		(8,749,365	)		(9,096,533	)		(29,793,971	)		(29,929,876	)
Gross margin		2,728,188			1,003,428			6,701,481			2,975,209
Selling and administrative expenses		(1,093,716	)		(1,064,433	)		(3,407,113	)		(7,509,147	)
Restructuring costs		1,308,639			-			(9,274,439	)		-
Operating income (loss)		2,943,111			(61,005	)		(5,980,071	)		(4,533,938	)
Interest expense		(142,409	)		(161,768	)		(462,838	)		(520,321	)
Gain (Loss) from discontinued operations before income taxes		2,800,702			(222,773	)		(6,442,909	)		(5,054,259	)
Income tax (expense) benefit		(659,285	)		51,833			1,516,661			1,167,345
Income (loss) from discontinued operations, net of tax	$	2,141,417		$	(170,940	)	$	(4,926,248	)	$	(3,886,914	)

Schedule of assets and liabilities from discontinued operations

	October 2, 2021		January 2, 2021
	(unaudited)
Cash	$	1,307,998	$	809,809
Accounts receivable		6,982,532		5,944,922
Inventory		11,006,353		9,990,656
Prepaid expenses		1,527,417		1,192,530
Property, plant and equipment, net		14,139,198		13,813,553
Patents and other intangibles net of accumulated amortization		-		6,935
Goodwill		-		5,900,837
Right of use assets		81,066		173,364
Total assets of discontinued operations	$	35,044,564	$	37,832,606
Current assets of discontinued operations¹	$	35,044,564	$	17,937,917
Non-current assets of discontinued operations		-		19,894,689
Total assets of discontinued operations	$	35,044,564	$	37,832,606
Accounts payable	$	3,125,295	$	2,196,101
Accrued compensation and other accrued expenses		3,804,230		960,074
Current portion of lease liability		75,547		125,049
Other long-term liabilities		81,066		48,315
Total liabilities of discontinued operations	$	7,086,138	$	3,329,539
Current liabilities of discontinued operations¹	$	7,086,138	$	3,281,224
Non-current liabilities of discontinued operations		-		48,315
Total liabilities of discontinued operations	$	7,086,138	$	3,329,539
¹ The total assets and liabilities of discontinued operations are presented as current in the October 2, 2021 balance sheet
as we expect to sell the discontinued operations and collect proceeds within one year.