Note 2 - Discontinued Operations

12 Months Ended

Nov. 30, 2023

Notes to Financial Statements

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

(2) Discontinued Operations

On June 7, 2023, the Company announced that it would be discontinuing the operations of its Tools 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 stockholder returns. A large portion of this segment's assets were disposed of in the 3rd quarter of fiscal 2023. The primary asset of this business, the real estate, is currently listed for sale. The company is working to finish liquidation over the next two fiscal quarters. The cessation of operations and liquidation of the Tools segment represents a strategic shift as a unique business unit of the Company. In accordance with Accounting Standard Code Topic 360, the Company has reclassified Tools as discontinued operations for all periods presented.

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

	November 30, 2023		November 30, 2022
Accounts receivables	$	-	$	255,508
Inventory		18,013		1,004,844
Other current assets		13,945		10,331
Current assets of discontinued operations	$	31,958	$	1,270,683

	November 30, 2023		November 30, 2022
Property, plant, and equipment, net	$	1,023,566	$	1,233,692
Other assets		-		155,534
Other assets of discontinued operations	$	1,023,566	$	1,389,226

	November 30, 2023		November 30, 2022
Accounts payable	$	3,539	$	120,503
Accrued salaries, wages, and commissions		-		81,026
Current portion of long-term debt		160,599		2,870
Other current liabilities		22,651		71,511
Current liabilities of discontinued operations	$	186,789	$	275,910

	November 30, 2023		November 30, 2022
Long-term portion of operating lease liabilities	$	-	$	1,590
Long-term portion of finance lease liabilities		-		126,720
Long-term debt, excluding current portion		-		160,858
Long-term liabilities of discontinued operations	$	-	$	289,168

The components of discontinued operations in the accompanying Consolidated Statement of Operations are as follows:

	Tools
	Twelve Months Ended
	November 30, 2023			November 30, 2022
Sales	$	2,030,714		$	2,753,485
Cost of goods sold		2,122,287			2,385,409
Gross profit (loss)		(91,573	)		368,076
Expenses:
Engineering		-			-
Selling		156,682			263,578
General and administrative		413,857			376,536
Total expenses		570,539			640,114
Income from operations		(662,112	)		(272,038	)
Other income (expense):
Interest expense		(61,516	)		(49,684	)
Other		15,315			(2,222	)
Total other expense		(46,201	)		(51,906	)
Income before income taxes		(708,313	)		(323,944	)
Income tax benefit		(212,493	)		(47,620	)
Net Income	$	(495,820	)	$	(276,324	)

The reportable segment information of discontinued operations is as follows:

	Tools
	Twelve Months Ended
	November 30, 2023			November 30, 2022
Revenue from external customers	$	2,031,000		$	2,754,000
Gross Profit	$	(92,000	)	$	368,000
Income (loss) from operations	$	(662,000	)	$	(272,000	)
Income (loss) before tax	$	(708,000	)	$	(324,000	)
Total Assets	$	1,056,000		$	2,660,000
Capital expenditures (1)	$	16,000		$	244,000
Depreciation & Amortization	$	135,000		$	146,000

(1) FY 2022 capital expenditures include $166,000 of finance leased assets.