Note 8 - Discontinued Operations

12 Months Ended

Feb. 29, 2024

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 8. Discontinued Operations

On December 1, 2023, the Company sold their wholly-owned subsidiaries Lexel Imaging Systems, Inc and Unicomp GA LLC to Ordway Properties LLC in a stock deal for $365,000. At the closing, the buyer paid the seller by the reduction of debt shown as rent payable owed by Video Display Corporation to Ordway Properties LLC. The Company recognized a gain on the sale of $370,000. Lexel Imaging Systems, Inc. had net sales of $0.7 million and a net loss of $0.6 million and Unicomp GA LLC had net sales of $0.7 million and a net loss of $0.2 million before the sale.

Both of these companies’ net sales, expenses and net losses are being shown as discontinued operations per ASC 205-20-45 “Reporting Discontinued Operations”. The assets, liabilities, operating losses and cash flows from these businesses are reflected as discontinued operations in the consolidated financial statements for all periods presented. The Company has reclassified results that were previously included in continuing operations as discontinued operations for these businesses.

	February 29, 2024			February 28, 2023
Net sales	$	1,385		$	2,478
Cost of goods sold		1,582			2,811
Gross profit		(197	)		(333	)
Operating expenses
Selling and delivery		-			(10	)
General and administrative		533			752
		533			742
Operating loss		(730	)		(1,075	)
Other income (expense)
Other, net		75			329
		75			329
Loss from discontinued operations	$	(655	)	$	(746	)

The balance sheet of the discontinued operations is summarized below (in thousands):

	February 29,		February 28,
	2024		2023
Assets
Current Assets
Cash	$	-	$	39
Accounts receivable, less allowance for
Bad debts of $0 and $0, respectively		-		343
Inventories, net		-		1,224
Total current assets		-		1,606
Property, plant and equipment:
Buildings		-		82
Machinery and equipment		-		2,110
		-		2,192
Accumulated depreciation		-		(2,041	)
Net property, plant and equipment		-		151
Other assets		-		127
Total assets	$	-	$	1,884
Liabilities
Current liabilities
Accounts payable	$	-	$	427
Accrued liabilities		-		331
Contract liabilities		-		51
Current lease liabilities		-		128
Total current liabilities		-	$	937
Total liabilities	$	-	$	937