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DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE | 3 Months Ended
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Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE | NOTE 4- DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE As previously reported, the Board of Directors initiated a formal review of strategic alternatives for the Ammunition segment during the year ended March 31, 2025. On January 20, 2025, we entered into the Asset Purchase Agreement with Olin Winchester, LLC the Buyer, pursuant to which the Buyer agreed to (i) acquire all assets of our business of designing, manufacturing, marketing, distributing and selling ammunition and ammunition components (collectively, the “Ammunition Manufacturing Business”) along with certain assets related to the Ammunition Manufacturing Business, including the Ammunition Manufacturing Business’ dedicated manufacturing facility in Manitowoc, WI, and (ii) assume certain liabilities related to the Ammunition Manufacturing Business, for a gross purchase price of $75.0 million, subject to adjustments for estimated net working capital and real property costs and pro-rations (the “Transaction”). The Transaction closed on April 18, 2025. The net proceeds after all adjustments totaled approximately $42.9 million. The assets and liabilities of the Ammunition segment were classified as assets and liabilities of discontinued operations in the accompanying condensed consolidated balance sheet as of March 31, 2025. Financial Information of Discontinued Operations The following table summarizes the results of operations of the Ammunition segment that are being reported as discontinued operations:
|  |  | For the Three Months Ended June 30,
|  |  | 2025(1) |  |  | 2024 |  |
Net revenues(2) |  |  | $ | 752,762 |  |  | $ | 18,671,559 |  |
Cost of revenues |  |  |  | 1,599,202 |  |  |  | 19,431,459 |  |
Gross profit |  |  |  | (846,440 | ) |  |  | (759,900 | ) |
Operating expenses |  |  |  |  |  |  |  |
Selling and marketing |  |  |  | 15,819 |  |  |  | 215,209 |  |
Corporate general and administrative |  |  |  | 232,104 |  |  |  | 2,690,125 |  |
Employee salaries and related expenses |  |  |  | 84,502 |  |  |  | 471,729 |  |
Depreciation and amortization expense |  |  |  | - |  |  |  | 35,866 |  |
Total operating expenses |  |  |  | 332,425 |  |  |  | 3,412,929 |  |
Loss from operations |  |  |  | (1,178,865 | ) |  |  | (4,172,829 | ) |
Total other income/(expense) |  |  |  | 583,231 |  |  |  | (151,044 | ) |
Loss from discontinued operations before income taxes |  |  |  | (595,634 | ) |  |  | (4,323,873 | ) |
Benefit for income taxes |  |  |  | - |  |  |  | (1,560,923 | ) |
Loss from discontinued operations, net of tax |  |  | $ | (595,634 | ) |  | $ | (2,762,950 | ) |
(1) The three months ended June 30, 2025 reflects results from April 1 to April 18, 2025 only. (2) Included in revenue for the three months ended June 30, 2025 and 2024 are excise taxes of $27,185 and $1,303,603, respectively. There were no assets or liabilities classified as discontinued operations as of June 30, 2025. The following table summarizes the Ammunition segment assets and liabilities classified as discontinued operations in the accompanying condensed consolidated balance sheets:
|  | March 31, 2025 |
ASSETS |  |  |
Accounts receivable, net |  | $ | 8,778,545 |
Inventories |  |  | 21,520,796 |
Prepaid expenses |  |  | 198,379 |
Equipment, net |  |  | 25,983,100 |
Patents, net |  |  | 1,409,542 |
Total assets of discontinued operations |  | $ | 57,890,362 |
LIABILITIES |  |  |
Accounts payable |  | $ | 2,513,533 |
Accrued liabilities |  |  | 3,280,449 |
Current portion of construction note payable |  |  | 286,200 |
Construction note payable, net of unamortized issuance costs |  |  | 10,564,816 |
Total liabilities of discontinued operations |  | $ | 16,644,998 |
Assets and liabilities classified as held for sale are required to be recorded at the lower of carrying value or fair value less costs to sell. Capital expenditures related to discontinued operations were $40,000 and $0.6 mill ion for the three months ended June 30, 2025 and 2024, respectively.

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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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