Note 3 - Discontinued Operations

9 Months Ended

Aug. 31, 2024

Notes to Financial Statements

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

3) 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 Company entered into a purchase agreement on July 31, 2024 to sell the Tools segment real estate in Canton, OH for $1,800,000. The Company expects to complete the sale in mid- October of 2024.

The cessation of operations and liquidation of the Tools segment as a unique business unit of the Company, represented a strategic shift in the Company's operations. 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 Condensed Consolidated Balance Sheets are as follows:

	August 31, 2024		November 30, 2023
Inventory	$	18,013	$	18,013
Other current assets		4,824		13,945
Current assets of discontinued operations	$	22,837	$	31,958

	August 31, 2024		November 30, 2023
Property, plant, and equipment, net	$	1,001,640	$	1,023,566
Other assets of discontinued operations	$	1,001,640	$	1,023,566

	August 31, 2024		November 30, 2023
Accounts payable	$	64	$	3,539
Current portion of long-term debt		158,363		160,599
Other current liabilities		16,852		22,651
Current liabilities of discontinued operations	$	175,279	$	186,789

Segment information as of August 31, 2024 and August 31, 2023 for discontinued operations is as follows:

	Tools
	Three Months Ended
	August 31, 2024			August 31, 2023
Revenue from external customers	$	-		$	439,000
Gross (Loss)		(22,000	)		(209,000	)
Operating Expense		-			181,000
Loss from operations		(22,000	)		(390,000	)
Loss before tax		(36,000	)		(399,000	)
Total Assets		1,024,000			1,576,000
Capital expenditures		-			-
Depreciation & Amortization	$	7,000		$	46,000

	Tools
	Nine Months Ended
	August 31, 2024			August 31, 2023
Revenue from external customers	$	-		$	2,031,000
Gross Profit (loss)		(74,000	)		100,000
Operating Expense		9,000			499,000
Loss from operations		(83,000	)		(399,000	)
Loss before tax		(124,000	)		(438,000	)
Total Assets		1,024,000			1,576,000
Capital expenditures		-			16,000
Depreciation & Amortization	$	22,000		$	127,000

Recently Issued Accounting Pronouncements

Recently Adopted Pronouncement

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 added a current expected credit loss (“CECL”) impairment model to U.S. GAAP that is based on expected losses rather than incurred losses. Modified retrospective adoption was required with any cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. ASU 2016-13 was effective for smaller reporting entities for fiscal years beginning after December 15, 2022, including interim periods within the year of adoption. Early adoption was permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASU 2016-13 in the first quarter of fiscal 2024. The Company did not made a cumulative-effect adjustment to retained earnings.

Accounting Pronouncements Not Yet Adopted

Segment Reporting - Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures.” ASU 2023-07 adds enhanced disclosures about significant segment expenses, clarifies circumstances in which an entity can disclose multiple segment measures of profit and loss and provides new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. An entity will be required to recast any changes to segment information for prior periods presented. The Company will adopt ASU 2023-07 in fiscal 2025. The Company does not expect the application ASU 2023-07 to have a significant impact on segment disclosures.