Discontinued Operations

9 Months Ended

Dec. 25, 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 fiscal year 2022. Due to the immateriality of the ongoing results from this former Retail segment, fiscal year 2023 activity has been consolidated within the results from continuing operations.

The following table presents the financial results of the Retail segment for the three and nine months ended December 26, 2021:

	Three Months Ended		Nine Months Ended
	December 26, 2021		December 26, 2021
Revenues	$	383,800	$	2,992,700
Cost of goods sold		56,700		1,179,600
Gross profit		327,100		1,813,100
Selling, general and administrative expenses		83,200		636,400
Income (loss) from operations before income taxes		243,900		1,176,700
Provision for (benefit from) income taxes		100		(11,200)
Net income (loss) attributable to discontinued operations	$	243,800	$	1,187,900

The financial results reflected above may not fully represent our former Retail segment stand-alone operating net income, as the results reported within Net income attributable to discontinued operations 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 Unaudited Consolidated Statements of Cash Flows included in this Form 10-Q report, the cash flows from discontinued operations are not separately classified. Cash provided by operating activities from discontinued operations for the nine months ended December 26, 2021, was $4.6 million.