Discontinued Operations (Tables)

12 Months Ended

May 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations

The following table summarizes the consideration and gain recognized in the year ended May 31, 2020 associated with the sale of the SBS Business:

Purchase Price	$	10,500,000
Cash in SEL		69,157
Less:
Net assets sold	$	4,460,177
Minimum cash		140,000
Transaction fees		453,287
Release of cumulative translation adjustment from OCI		455,848
Plus or minus:
Closing adjustments		107,000
Pre-tax gain on sale	$	5,166,845
Income taxes		62,100
Gain on sale, net of income taxes	$	5,104,745

The following are the carrying amounts of assets and liabilities classified as held for sale and included as a part of discontinued operations:

	2020		2019
Accounts receivable, net	$	-	$	1,365,114
Inventories		-		3,777,913
Prepaid expenses		-		49,357
Current assets held for sale	$	-	$	5,192,384
Property and equipment, net		-		85,967
Noncurrent assets held for sale	$	-	$	85,967
Accounts payable	$	-	$	393,773
Accrued commissions		-		128,453
Accrued payroll liabilities		-		127,124
Customer deposits and prepayments		-		109,860
Other accrued liabilities		-		89,939
Current liabilities held for sale	$	-	$	849,149
Net assets held for sale	$	-	$	4,429,202

The following is a composition of the line items constituting income from discontinued operations:

	Fiscal year ended, May 31,
	2020			2019
Net Sales	$	4,343,008		$	9,080,717
Cost of revenue		2,374,251			5,876,176
Gross profit		1,968,757			3,204,541
Operating expenses:
General, administration and sales		1,252,222			2,771,254
Research and development		35,920			72,208
Total operating expenses		1,288,142			2,843,462
Operating income		680,615			361,079
Other income (expense), net		(63,904	)		(85,972	)
Income before Taxes		616,711			275,107
Provision for Income taxes		(1,423	)		17,665
Net income from discontinued operations	$	618,134		$	257,442