DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

6 Months Ended

Sep. 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 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

There was no activity related to discontinued operations subsequent to June 30, 2025. Accordingly, the Company has not presented results of discontinued operations for the three months ended September 30, 2025. However, for informational purposes, the results of discontinued operations for the three months ended September 30, 2024 are presented in the table below. The following table summarizes the results of operations of the Ammunition segment that are reported as discontinued operations:


	For the Six Months Ended September 30,						For the Three Months Ended September 30,
	2025(1)			2024			2024

Net revenues(2)	$	752,762		$	38,108,123		$	19,436,564
Cost of revenues		1,599,202			42,062,474			22,631,015
Gross profit		(846,440	)		(3,954,351	)		(3,194,451	)

Operating expenses
Selling and marketing		15,819			541,254			326,045
Corporate general and administrative		232,104			5,049,472			2,359,347
Employee salaries and related expenses		84,502			1,030,390			558,661
Depreciation and amortization expense		-			35,866			-
Total operating expenses		332,425			6,656,982			3,244,053
Loss from operations		(1,178,865	)		(10,611,333	)		(6,438,504	)
Total other income/(expense)		583,231			(272,448	)		(121,404	)
Loss from discontinued operations before income taxes		(595,634	)		(10,883,781	)		(6,559,908	)
Benefit for income taxes		-			(1,560,923	)		-
Loss from discontinued operations, net of tax	$	(595,634	)	$	(9,322,858	)	$	(6,559,908	)

(1)

Reflects results from April 1, 2025 through April 18, 2025 only.

(2)

Included in revenue for the six months ended September 30, 2025 and 2024 are excise taxes of $27,185 and $2,654,200, respectively. Included in revenue for the three months ended September 30, 2024 are excise taxes of $1,350,597.

There were no assets or liabilities classified as discontinued operations as of September 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 $0.8 million for the six months ended September 30, 2025 and 2024, respectively.