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Note 3 – Discontinued Operations – Sale of Consumer Segment

3 Months Ended

Jul. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Note 3 – Discontinued Operations – Sale of Consumer Segment

Note 3 – Discontinued Operations – Sale of Consumer Segment

In November 2022, the Company agreed to the sale of its consumer segment consisting of Rotor Riot, (“RR”), and Fat Shark Holdings (“FS”). The closing of the transaction is subject to the successful initial public offering by the buyer, Unusual Machines, Inc. The Company has concluded that the transaction is presently likely to close within the next twelve months. Accordingly, the Consumer segment has been classified as Discontinued Operations and reported in accordance with the applicable accounting standards. See Note 22 for additional information regarding the transaction. Set forth below are the results of operations for:

		Three months ended July 31,
		2023				2022
Revenues		$	1,869,219			$	1,942,720
Cost of goods sold			1,385,116				1,667,213
Gross margin			484,103				275,507
Operating expenses
Operations			209,980				161,783
Research and development			46,249				82,806
Sales and marketing			404,104				195,278
General and administrative			43,606				55,161
Total operating expenses			703,939				495,028
Operating loss			(219,836	)			(219,521	)
Other (income) expense
Interest expense			22,856				—
Other, net			(119	)			(124	)
Other (income) expense			22,737				(124	)
Net loss from discontinued operations		$	(242,573	)		$	(219,397	)

Assets and liabilities for the Consumer Segment included:

		July 31, 2023				April 30, 2023
Current assets
Cash		$	15,021			$	86,656
Accounts receivable, net			106,649				61,107
Inventory			2,921,262				3,065,954
Other			1,502,438				2,069,438
Total current assets			4,545,370				5,283,155
Intangible assets, net			20,000				20,000
Other			3,853				3,853
Operating lease right-of-use assets			73,590				84,544
Total long term assets			97,443				108,397
Current liabilities
Accounts payable		$	65,058			$	606,872
Accrued expenses			89,014				109,480
Debt obligations - short term			237,814				—
Customer deposits			28,079				244,688
Operating lease liabilities			51,234				49,461
Total current liabilities			471,199				1,010,501
Long term liabilities - Operating lease liabilities			28,290				41,814
Working capital		$	4,074,171			$	4,272,654

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- References

No definition available.

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- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//205-20/tableOfContent

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 360
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//360/tableOfContent

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