Discontinued Operations

3 Months Ended

Jun. 26, 2022

Discontinued Operations

Discontinued Operations

Note 10. Discontinued Operations

At a closing on December 2, 2020, the Company sold most of its retail inventory, the Ventev brand as it relates to mobile device accessory products, and certain other retail-related assets to Voice Comm, LLC (“Voice Comm”). As part of the sale agreement, the Company is entitled to royalty payments of up to $3.0 million in the aggregate on the sale of Ventev branded products by Voice Comm over a four-year period after the closing.

As a result of the disposal described above, the operating results of the former Retail segment have been included in Income (loss) from discontinued operations, net of taxes, in the Consolidated Statements of Income (Loss) for all periods presented.

The accompanying unaudited interim Consolidated Financial Statements for all periods presented reflect the results of the Retail segment as a discontinued operation. The following table presents the financial results of the Retail segment for the three months ended June 26, 2022 and June 27, 2021:

Three Months Ended

	June 26, 2022		June 27, 2021
Revenues	$	164,000	$	1,498,800
Cost of goods sold		—		424,900
Gross profit		164,000		1,073,900
Selling, general and administrative expenses		(73,800)		584,400
Income (loss) from operations		237,800		489,500
Income (loss) from operations before income taxes		237,800		489,500
Provision for (benefit from) income taxes		(4,500)		(6,000)
Net income (loss) attributable to discontinued operations	$	242,300	$	495,500

The financial results reflected above may not fully represent our former Retail segment stand-alone operating net income, as the results reported within Income (loss) from discontinued operations, net of taxes, include only certain costs that are directly attributable to this former segment and exclude certain corporate overhead and operational costs that may have been previously allocated for each period.

In our Consolidated Statements of Cash Flows, the cash flows from discontinued operations are not separately classified. Cash provided by operating activities from discontinued operations for the three months ended June 26, 2022 and June 27, 2021 was $0.5 million and $4.1 million, respectively.