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Discontinued Operations | 12 Months Ended
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Dec. 31, 2022
Discontinued Operations |
2. Discontinued Operations | 2. Discontinued Operations We determined that the companies previously included in our former Diversified Products segment no longer fit with our long-term strategy and have initiated the process of selling the companies within the former Diversified Products segment. Selling these companies will allow management to focus on our core capabilities and offerings. The former Diversified Products segment met the criteria to be held for sale and furthermore, we determined that the assets held for sale qualified for discontinued operations. As such, the financial results of the former Diversified Products segment are reflected in our condensed consolidated statements of operations as discontinued operations for all periods presented. Additionally, both current and non-current assets and liabilities of discontinued operations are reflected in the condensed consolidated balance sheets for both periods presented. On October 19, 2022, the Company sold its Argo EMS business (“Argo”). Argo supplies printed circuit boards and other electronic assemblies to original equipment manufacturers in various industries, including measurement systems, semiconductor equipment manufacturing, and industrial control, medical, and military products. On November 3, 2021, the Company sold its Greenwald Industries, Inc. division (“Greenwald”). Greenwald, located in Chester, CT, is an OEM manufacturer offering a range of payment solutions from coin-vending products to smart card systems and payment applications. On November 22, 2021, the Company sold its Frazer & Jones Company division (“Frazer & Jones”). Frazer & Jones is a ductile and malleable iron foundry located in Syracuse, NY. Eastern has exited the mining business to focus on our three core businesses. Summarized Financial Information of Discontinued Operations The following table represents income from discontinued operations, net of tax:
|  | Year Ended |
|  | December 31, 2022 |  |  | January 1, 2022 |
Net sales |  | $ | 7,574,181 |  |  | $ | 44,289,411 |
Cost of products sold |  |  | (5,137,380 | ) |  |  | (24,873,717 | )
Gross margin |  |  | 2,436,801 |  |  |  | 19,415,694 |
Selling and administrative expenses |  |  | (891,519 | ) |  |  | (15,962,532 | )
Restructuring benefit (costs) |  |  | 305,539 |  |  |  | (11,807,512 | )
Operating income (loss) |  |  | 1,850,821 |  |  |  | (8,354,350 | )
Interest expense |  |  | (184,509 | ) |  |  | (582,574 | )
Income (loss) from discontinued operations before income taxes |  |  | 1,666,312 |  |  |  | (8,936,924 | )
Income tax (expense) benefit |  |  | (414,855 | ) |  |  | 2,103,752 |
Gain (loss) from discontinued operations, net of tax |  | $ | 1,251,457 |  |  | $ | (6,833,172 | )
The following table represents the assets and liabilities from discontinued operations:
|  | December 31, 2022 |  |  | January 1, 2022 |
Cash |  | $ | - |  |  | $ | 434,126 |
Accounts receivable |  |  | - |  |  |  | 1,153,274 |
Inventory |  |  | - |  |  |  | 1,258,032 |
Prepaid expenses |  |  | - |  |  |  | 59,850 |
Property, plant and equipment, net |  |  | - |  |  |  | 591,920 |
Right of use assets |  |  | - |  |  |  | 24,697 |
Total assets of discontinued operations |  | $ | - |  |  | $ | 3,521,899 |
Current assets of discontinued operations |  | $ | - |  |  | $ | 3,521,899 |
Non-current assets of discontinued operations |  |  | - |  |  |  | - |
Total assets of discontinued operations |  | $ | - |  |  | $ | 3,521,899 |
Accounts payable |  | $ | - |  |  | $ | 167,794 |
Accrued compensation and other accrued expenses |  |  | - |  |  |  | 388,499 |
Current portion of lease liability |  |  | - |  |  |  | 24,697 |
Total liabilities of discontinued operations |  | $ | - |  |  | $ | 580,990 |
Current liabilities of discontinued operations |  | $ | - |  |  | $ | 580,990 |
Non-current liabilities of discontinued operations |  |  | - |  |  |  | - |
Total liabilities of discontinued operations |  | $ | - |  |  | $ | 580,990 |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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