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Divestiture of Consumer Segment | 8 Months Ended
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Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Divestiture of Consumer Segment | Note 4 – Divestiture of Consumer Segment On February 16, 2024, the Company closed the sale of Rotor Riot and Fat Shark to Unusual Machines. The sale was conducted pursuant to a Share Purchase Agreement dated November 21, 2022, as amended on April 13, 2023, July 10, 2023, and December 11, 2023 (the “SPA”). The transaction closed concurrently with UMAC’s initial public offering and listing on the NYSE American exchange (“IPO”) under the symbol “UMAC.” The total consideration received by the Company was valued at $22 million and consisted of i) $1 million in cash, ii) $4 million in a secured promissory note (“Promissory Note”) including a post-closing adjustment for excess working capital of $2 million, iii) $17 million in securities of Unusual Machines. The Promissory Note from Unusual Machines bore interest at a rate of 8% per year, was due 18 months from the date of issue, and required monthly payments of interest due in arrears on the 15th day of each month. The $17 million worth of UMAC common stock was valued at the IPO price for UMAC’s common stock of $4.00 per share, resulting in 4,250,000 shares of UMAC common stock being issued to the Company. The Consumer segment has been classified as Discontinued Operations and reported in accordance with the applicable accounting standards. Set forth below are the results of operations for the Consumer segment for the years ended April 30, 2024 and 2023. The Consumer segment had no activity for the eight months ended December 31, 2024. Schedule of Discontinued Operations of Consumer Segment
|  | 2024 |  |  | 2023 |
|  | Year ended April 30, |
|  | 2024 |  |  | 2023 |
Revenues |  | $ | 4,213,653 |  |  | $ | 5,290,946 |
Cost of goods sold |  |  | 4,577,980 |  |  |  | 4,793,430 |
Gross (Loss) Profit |  |  | (364,327 | ) |  |  | 497,516 |
Operating Expenses |  |  |  |  |  |  |  |
Research and development |  |  | 118,093 |  |  |  | 346,002 |
Sales and marketing |  |  | 1,157,448 |  |  |  | 862,384 |
General and administrative |  |  | 863,361 |  |  |  | 1,044,435 |
Total operating expenses |  |  | 2,138,902 |  |  |  | 2,252,821 |
Operating loss |  |  | (2,503,229 | ) |  |  | (1,755,305 | )
Other expense (income) |  |  |  |  |  |  |  |
Interest expense |  |  | 22,856 |  |  |  | — |
Other, net |  |  | (152 | ) |  |  | (24,919 | )
Other expense (income) |  |  | 22,704 |  |  |  | (24,919 | )
Net loss from discontinued operations |  | $ | (2,525,933 | ) |  | $ | (1,730,386 | )
Assets and liabilities for the Consumer segment included the following as of April 30, 2023. There were no balances as of December 31, 2024 or April 30, 2024. Schedule of Discontinued Operations of Assets and Liabilities
|  | April 30, 2023 |
Current assets |  |  |  |
Cash |  | $ | 86,656 |
Accounts receivable, net |  |  | 61,107 |
Inventory |  |  | 3,065,954 |
Other |  |  | 2,069,438 |
Total current assets |  |  | 5,283,155 |
Intangible assets, net |  |  | 20,000 |
Other |  |  | 3,853 |
Operating lease right-of-use assets |  |  | 84,544 |
Total long term assets |  |  | 108,397 |
Current liabilities |  |  |  |
Accounts payable |  | $ | 606,872 |
Accrued expenses |  |  | 109,480 |
Customer deposits |  |  | 244,688 |
Operating lease liabilities |  |  | 49,461 |
Total current liabilities |  |  | 1,010,501 |
Long term liabilities - Operating lease liabilities |  |  | 41,814 |
Working capital |  | $ | 4,272,654 |

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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 + Details
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