Discontinued Operations

12 Months Ended

Dec. 30, 2023

Discontinued Operations

2. Discontinued Operations

2. DISCONTINUED OPERATIONS

In the second quarter of 2021, we determined that the companies previously included in our former Diversified Products segment no longer fit with our long-term strategy and initiated the process of selling the companies within the former Diversified Products segment to allow management to focus on our core capabilities and offerings.

The former Diversified Products segment met the criteria to be held for sale and furthermore, we determined that the assets held for sale qualified for discontinued operations. As such, the financial results of Argo EMS are reflected in our condensed consolidated statements of operations as discontinued operations for 2022.

On October 19, 2022, the Company sold its Argo EMS business (“Argo”). Argo supplied printed circuit boards and other electronic assemblies to original equipment manufacturers in various industries, including measurement systems, semiconductor equipment manufacturing, and industrial control, medical, and military products.

On November 3, 2021, the Company sold its Greenwald Industries, Inc. division (“Greenwald”). Greenwald, located in Chester, CT, is an OEM manufacturer offering a range of payment solutions from coin-vending products to smart card systems and payment applications.

On November 22, 2021, the Company sold its Frazer & Jones Company division (“Frazer & Jones”). Frazer & Jones is a ductile and malleable iron foundry located in Syracuse, NY. Eastern has exited the mining business to focus on our three core businesses.

Summarized Financial Information of Discontinued Operations

The following table represents income from discontinued operations, net of tax:

	Year Ended
	December 30, 2023		December 31, 2022
Net sales	$	-	$	7,574,181
Cost of products sold		-		(5,137,380	)
Gross margin		-		2,436,801
Selling and administrative expenses		-		(891,519	)
Restructuring benefit (costs)		-		305,539
Operating income (loss)		-		1,850,821
Interest expense		-		(184,509	)
Income (loss) from discontinued operations before income taxes		-		1,666,312
Income tax (expense) benefit		-		(414,855	)
Gain (loss) from discontinued operations, net of tax	$	-	$	1,251,457