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Note 3 - Discontinued Operations | 9 Months Ended
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Aug. 31, 2023
Notes to Financial Statements |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] |
| 3) | Discontinued Operations
On June 7, 2023, the Company announced that it would be discontinuing the operations of its Tools segment in order to focus its efforts and resources on the business segments that have historically been more successful and that are expected to present greater opportunities for meaningful long-term stockholder returns. A large portion of this segment's assets were disposed of in the 3rd quarter of fiscal 2023. The primary asset of this business, the real estate, is listed for sale. The company is working to finish liquidation over the next two fiscal quarters. The cessation of operations and liquidation of the Tools segment represents a strategic shift as a unique business unit of the Company In accordance with Accounting Standard Code Topic 360, the Company has reclassified Tools as discontinued operations for all periods presented. The components of discontinued operations in the accompanying Condensed Consolidated Balance Sheets are as follows:
|  | August 31, 2023 |  |  | November 30, 2022 |
Accounts receivables |  | $ | 28,659 |  |  | $ | 255,508 |
Inventory |  |  | 193,351 |  |  |  | 1,004,844 |
Other current assets |  |  | 167,650 |  |  |  | 10,331 |
Current assets of discontinued operations |  | $ | 389,660 |  |  | $ | 1,270,683 |
|  | August 31, 2023 |  |  | November 30, 2022 |
Property, plant, and equipment, net |  | $ | 1,057,497 |  |  | $ | 1,233,692 |
Other assets |  |  | 129,288 |  |  |  | 155,534 |
Other assets of discontinued operations |  | $ | 1,186,785 |  |  | $ | 1,389,226 |
|  | August 31, 2023 |  |  | November 30, 2022 |
Accounts payable |  | $ | 3,703 |  |  | $ | 120,503 |
Salaries, wages, and commissions |  |  | 40,620 |  |  |  | 81,026 |
Current portion of long-term debt |  |  | 161,726 |  |  |  | 2,870 |
Other current liabilities |  |  | 54,905 |  |  |  | 71,511 |
Current liabilities of discontinued operations |  | $ | 260,954 |  |  | $ | 275,910 |
|  | August 31, 2023 |  |  | November 30, 2022 |
Long-term portion of operating lease liabilities |  | $ | - |  |  | $ | 1,590 |
Long-term portion of finance lease liabilities |  |  | 105,030 |  |  |  | 126,720 |
Long-term debt, excluding current portion |  |  | - |  |  |  | 160,858 |
Long-term liabilities of discontinued operations |  | $ | 105,030 |  |  | $ | 289,168 |
Income from discontinued operations, before income taxes in the accompanying Condensed Consolidated Statements of Operations, is comprised of the following:
|  | Tools |
|  | Three Months Ended |
|  | August 31, 2023 |  |  | August 31, 2022 |
Revenue from external customers |  | $ | 439,000 |  |  | $ | 664,000 |
Gross Profit |  |  | (209,000 | ) |  |  | 81,000 |
Income (loss) from operations |  |  | (390,000 | ) |  |  | (69,000 | )
Income (loss) before tax |  |  | (399,000 | ) |  |  | (84,000 | )
Capital expenditures |  |  | - |  |  |  | 53,000 |
Depreciation & Amortization |  | $ | 46,000 |  |  | $ | 39,000 |
|  | Tools |
|  | Nine Months Ended |
|  | August 31, 2023 |  |  | August 31, 2022 |
Revenue from external customers |  | $ | 2,031,000 |  |  | $ | 1,998,000 |
Gross Profit |  |  | 100,000 |  |  |  | 271,000 |
Income (loss) from operations |  |  | (399,000 | ) |  |  | (195,000 | )
Income (loss) before tax |  |  | (438,000 | ) |  |  | (234,000 | )
Capital expenditures |  |  | 16,000 |  |  |  | 64,000 |
Depreciation & Amortization |  | $ | 127,000 |  |  | $ | 104,000 |
Recently Issued Accounting Pronouncements Accounting Pronouncements Not Yet Adopted Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 adds a current expected credit loss (“CECL”) impairment model to U.S. GAAP that is based on expected losses rather than incurred losses. Modified retrospective adoption is required with any cumulative-effect adjustment recorded to retained earnings as of the beginning of the period of adoption. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within the year of adoption. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company will adopt ASU 2016-13 in fiscal 2024. The Company does not expect the application of the CECL impairment model to have a significant impact on its allowance for uncollectible amounts for accounts receivable.

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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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