18. Discontinued Operations

12 Months Ended

Jun. 30, 2022

18. Discontinued Operations

Discontinued Operations

18. Discontinued Operations

Effective November 30, 2020, the Company, as part of its strategic shift to becoming a life sciences tool provider, sold its Catalyst Research Instruments Operations reporting segment through the sale by Altamira of substantially all of its assets, which comprised of fixed 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 payable in cash through January 2021, resulting in a $405,400 pre-tax loss. In order to preserve business continuity for the buyer, Altamira agreed to purchase certain components on behalf of JWGB for which JWGB agreed to reimburse Altamira. At March 31, 2021, JWGB paid the full $440,000 purchase price and $28,500 for component purchases made on its behalf. 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 will be shipped by the end of the fiscal year ending June 30, 2021, product warranty and other miscellaneous liabilities related to certain employee benefits, and expenses related to the closure of the Altamira facility, which was substantially 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.

	As of
Assets:	June 30, 2022		June 30, 2021
Cash	$	200	$	-
Accounts receivable		-		52,000
Inventories		-		3,300
	$	200	$	55,300

	As of
Liabilities:	June 30, 2022		June 30, 2021
Accrued expenses and taxes		-		20,700
Contract liabilities		-		16,500
	$	-	$	37,200

	For the year ended
	June 30, 2022		June 30, 2021
Revenues	$	28,500	$	387,700
Cost of goods sold		16,600		471,800
Gross profit		11,900		(84,100	)
Selling, general and administrative expenses		3,500		280,400
Gain (loss) from operations		8,400		(364,500	)
Loss on disposal		-		(405,400	)
Gain (loss) before income tax benefit		8,400		(769,900	)
Income tax expense (benefit), all deferred		4,000		(207,400	)
Net gain (loss) attributable to discontinued operations	$	4,400	$	(562,500	)

In our Consolidated Statements of Cash Flows, the cash flows from discontinued operations are not separately classified. Cash provided and (used) by operating activities from discontinued operations for the years ended June 30, 2022 and June 30, 2021 was $17,800 and ($75,000), respectively. Cash provided by investing activities from discontinued operations for the years ended June 30, 2022 and June 30, 2021 was $0 and $440,000, respectively.  There was no cash provided or used by the discontinued operations for financing activities for the years ended June 30, 2022 and June 30, 2021, respectively.