9 Discontinued Operations

9 Months Ended

Mar. 31, 2022

9 Discontinued Operations

Discontinued Operations

9. Discontinued Operations

Effective November 30, 2020, as part of its strategic shift to becoming a life sciences tool provider, the Company sold its operations relating to the manufacture and marketing of custom-made catalyst research instruments for universities, government laboratories, and chemical petrochemical companies sold on direct basis (the “Catalyst Research Instruments Operations”) through the sale by Altamira of substantially all of its assets and inventory to Beijing JWGB Sci. & Tech. Co. Ltd., a corporation formed under the laws of the People’s Republic of China (“JWGB”) for $440,000 which was fully paid in cash by January 2021, resulting in a $405,400 pre-tax loss. To preserve business continuity for the buyer, Altamira agreed to purchase certain components on behalf of JWGB for which JWGB agreed to reimburse Altamira. The Company retained all its receivables and payables related to sales made prior to November 30, 2020, certain inventory related to two work-in-process orders which have been shipped, product warranty and other miscellaneous liabilities related to certain employee benefits, and expenses related to the closure of the Altamira facility, which was completed at the end of December 2020.

As a result of the disposal described above, the operating results of the former Catalyst Research Instruments Operations segment have been presented as discontinued operations in the balance sheets, the statements of operations, and the statements of cash flows, as detailed below.

Assets:	March 31, 2022		June 30, 2021
Cash	$	600	$	-
Accounts receivable		-		52,000
Inventories		-		3,300
	$	600	$	55,300

Liabilities:	March 31, 2022		June 30, 2021
Accrued expenses and taxes	$	-	$	20,700
Contract liabilities		7,900		16,500
	$	7,900	$	37,200

	Three Months Ended					Nine Months Ended
	March 31,2022			March 31,2021		March 31,2022		March 31,2021
Revenues	$	-		$	107,800	$	20,600	$	387,700
Cost of goods sold		6,900			78,800		10,300		458,500
Gross profit (loss)		(6,900	)		29,000		10,300		(70,800	)
Selling, general and administrative expenses		700			12,600		2,900		282,200
Income (loss) from operations		(7,600	)		16,400		7,400		(353,000	)
Loss on disposal		-			-		-		(405,400	)
Income (loss) before income tax benefit		(7,600	)		16,400		7,400		(758,400	)
Income tax expense (benefit)		-			-		4,000		(179,900	)
Net income (loss) attributable to discontinued operations	$	(7,600	)	$	16,400	$	3,400	$	(578,500	)

In our Consolidated Statements of Cash Flows, the cash flows from discontinued operations are not separately classified. Cash provided by (used in) operating activities from discontinued operations for nine months ended March 31, 2022 and March 31, 2021 was $25,400 and $(502,900), respectively.

Cash provided by investing activities from discontinued operations for the nine months ended March 31, 2022 was none and $440,000 for the nine months ended March 31, 2021.

There was no cash provided by or used in financing activities for either period.