2. Discontinued Operations

On June 1, 2018, the Company entered into the Purchase Agreement with Webasto pursuant to which the Company agreed to sell, and Webasto agreed to acquire, substantially all of the assets of the EES Business and to assume certain liabilities related to the EES Business. The Company anticipates that the transaction will close within its first quarter of fiscal 2019. As of April 30, 2018, the Company determined that the EES Business met the criterion for classification as an asset held for sale and represents a strategic shift in in our operations. Therefore, the assets and liabilities and the results of operations of the EES Business are reported as discontinued operations for all periods presented. The table below presents the statements of operations data for the EES Business.


	Year Ended April 30,
	2018		2017		2016
Net sales	$	37,899	$	35,933	$	30,360
Cost of sales		30,890		29,008		23,831
Gross margin:		7,009		6,925		6,529
Selling, general and administrative		7,825		8,895		9,614
Research and development		3,526		4,577		7,251
Other (expense) income, net		(27)		7		28
Loss from discontinued operations before income taxes		(4,369)		(6,540)		(10,308)
Benefit for income taxes		(1,861)		(2,386)		(3,881)
Net loss from discontinued operations	$	(2,508)	$	(4,154)	$	(6,427)

The major classes of assets and liabilities included in discontinued operations related to the EES Business are presented in the table below.


	April 30,
	2018		2017
Carrying amount of assets classified as discontinued operations
Current assets:
Accounts receivable, net of allowance for doubtful accounts of $139 at April 30, 2018 and $187 at April 30, 2017	$	6,348	$	5,642
Inventories, net		18,716		19,168
Prepaid expenses and other current assets		185		120
Property and equipment, net		3,100		—
Total current assets classified as discontinued operations		28,349		24,930
Property and equipment, net		—		3,258
Total non-current assets classified as discontinued operations		—		3,258
Total assets classified as discontinued operations	$	28,349	$	28,188
Carrying amount of liabilities classified as discontinued operations
Current liabilities:
Accounts payable	$	5,121	$	4,388
Wages and related accruals		1,946		2,019
Customer advances		918		1,260
Other current liabilities		1,199		1,634
Total current liabilities		9,184		9,301
Total liabilities classified as discontinued operations	$	9,184	$	9,301