Note 3 - Discontinued Operations

9 Months Ended

Aug. 31, 2018

Notes to Financial Statements

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

3 ) Discontinued Operations

Effective

October 31, 2016,

the Company discontinued the operations of its Vessels segment in order to focus its efforts and resources on the business segments that have historically been more successful and that are expected to present greater opportunities for meaningful long-term shareholder returns.

In

January 2018,

the Company accepted an offer on the real estate assets of its Vessels segment for

$1,500,000,

which was below the carrying value of the real estate assets at that time. Based on these facts the Company recorded an impairment of the real estate assets of approximately

$289,000

for the fiscal year ended

November 30, 2017,

which reduced the value to

$1,425,000,

which is the value the Company expected to receive after commissions on the sale of these real estate assets. On

March 29, 2018,

the remaining assets of Vessels, consisting of these real estate assets, were disposed of at a selling price of

$1,500,000.

As Vessels was a unique business unit of the Company, its liquidation was a strategic shift. In accordance with Accounting Standard Codification Topic

360,

the Company has classified Vessels as discontinued operations for all periods presented.

Income from discontinued operations, before income taxes in the accompanying Condensed Consolidated Statements of Operations is comprised of the following:

	Three Months Ended
	August 31, 2018		August 31, 2017
Revenue from external customers	$	-	$	-
Gross profit		-		-
Operating expense		-		17,082
Income (loss) from operations		-		(17,082	)
Income (loss) before taxes		-		(26,449	)

	Nine Months Ended
	August 31, 2018			August 31, 2017
Revenue from external customers	$	-		$	-
Gross profit		-			-
Operating expense		51,133			40,905
Income (loss) from operations		(51,133	)		(40,905	)
Income (loss) before taxes		(67,177	)		(49,238	)

The components of discontinued operations in the accompanying Condensed Consolidated Balance Sheets are as follows:

	August 31, 2018		November 30, 2017
Cash	$	-	$	2,454
Property, plant, and equipment, net		-		1,425,000
Assets of discontinued operations	$	-	$	1,427,454
Accrued expenses		-		49,931
Notes payable		-		599,584
Liabilities of discontinued operations	$	-	$	649,515