Note 2 - Discontinued Operations

12 Months Ended

Nov. 30, 2024

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, was sold in October of 2024 for $1,800,000. The Company recorded a gain on the disposal of the real estate of $683,685 included in income (loss) from discontinued operations before income taxes on the Consolidated Statements of Operations. The Company's net book value of the asset at the time of sale was $996,768 and the Company paid $119,547 in closing costs including real estate agent commission, legal fees and property taxes. The Company's assets and liabilities from this segment were gone prior to November 30, 2024. The cessation of operations and liquidation of the Tools segment represented a strategic shift for the Company. In accordance with ASC Topic 360, the Company presented Tools as discontinued operations for all periods in this report.

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

	November 30, 2023
Inventory	$	18,013
Other current assets		13,945
Current assets of discontinued operations	$	31,958

	November 30, 2023
Property, plant, and equipment, net	$	1,023,566
Other assets		-
Other assets of discontinued operations	$	1,023,566

	November 30, 2023
Accounts payable	$	3,539
Current portion of long-term debt		160,599
Other current liabilities		22,651
Current liabilities of discontinued operations	$	186,789

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

	Tools
	Twelve Months Ended
	November 30, 2024			November 30, 2023
Sales	$	-		$	2,030,714
Cost of goods sold		108,618			2,122,287
Gross profit (loss)		(108,618	)		(91,573	)
Expenses:
Engineering		-			-
Selling		253			156,682
General and administrative		9,012			413,857
Total expenses		9,265			570,539
Loss from operations		(117,883	)		(662,112	)
Other income (expense):
Interest expense		(49,188	)		(61,516	)
Gain (loss) on disposal of real estate		683,685			-
Other		558			15,315
Total other income (expense)		635,055			(46,201	)
Income (loss) before income taxes		517,172			(708,313	)
Income tax expense (benefit)		115,330			(212,493	)
Net income (loss)	$	401,842		$	(495,820	)

The reportable segment information of discontinued operations is as follows:

	Tools
	Twelve Months Ended
	November 30, 2024			November 30, 2023
Revenue from external customers	$	-		$	2,031,000
Gross Profit	$	(109,000	)	$	(92,000	)
Income (loss) from operations	$	(118,000	)	$	(662,000	)
Income (loss) before tax	$	517,000		$	(708,000	)
Total Assets	$	-		$	1,056,000
Capital expenditures	$	-		$	16,000
Depreciation & Amortization	$	27,000		$	135,000