DISCONTINUED OPERATIONS

12 Months Ended

Dec. 28, 2024

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

2. DISCONTINUED OPERATIONS

In the third quarter of 2024, the Company decided to sell Big 3 Mold and determined that the Big 3 Mold business met the criteria to be held for sale and that the assets held for sale qualify for discontinued operations. As such, the financial results of the Big 3 Mold business are reflected in our consolidated statements of income as discontinued operations for all periods presented. Additionally, current and non-current assets and liabilities of discontinued operations are reflected in the consolidated balance sheets for all periods presented.

Summarized Financial Information of Discontinued Operations

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

	Year Ended
	December 28, 2024			December 30, 2023
Net sales	$	13,728,762		$	14,597,477
Cost of products sold		(11,573,847	)		(11,416,639	)
Gross margin		2,154,915			3,180,838
Selling and administrative expenses		(4,296,484	)		(5,030,732	)
Operating loss		(2,141,569	)		(1,849,894	)
Other expense		(23,087,775	)		(1,539,941	)
Interest expense		(680,329	)		(701,320	)
Loss from discontinued operations before income taxes		(25,909,673	)		(4,091,155	)
Income tax benefit		4,164,932			895,806
Loss from discontinued operations, net of tax	$	(21,744,741	)	$	(3,195,349	)

The following table represents the assets and liabilities from discontinued operations:

	December 28, 2024		December 30, 2023
Cash	$	833,141	$	251,326
Accounts receivable		2,533,357		2,852,907
Inventory		784,485		875,528
Prepaid expenses		789,438		604,036
Property, plant and equipment, net		-		4,767,724
Patents and other intangibles net of accumulated amortization		-		5,744,312
Goodwill		-		12,200,695
Right of use assets		131,407		172,310
Total assets of discontinued operations	$	5,071,828	$	27,468,838
Current assets of discontinued operations¹	$	5,071,828	$	4,583,797
Non-current assets of discontinued operations		-		22,885,041
Total assets of discontinued operations	$	5,071,828	$	27,468,838
Accounts payable	$	756,842	$	765,356
Accrued compensation and other accrued expenses		1,242,812		775,838
Note payable, current		-		-
Current portion of operating lease liability		121,299		94,355
Current portion of financing lease liability		7,371
Other long-term liabilities		16,249		6,920
Total liabilities of discontinued operations	$	2,144,573	$	1,642,469
Current liabilities of discontinued operations¹	$	2,144,573	$	1,635,549
Non-current liabilities of discontinued operations		-		6,920
Total liabilities of discontinued operations	$	2,144,573	$	1,642,469

¹ the total assets and liabilities of discontinued operations are presented as current in the December 28, 2024 consolidated balance sheet as we expect to sell the discontinued operations and collect proceeds within one year.