Note 3 – Discontinued Operations – Sale of Consumer Segment |
Note
3 – Discontinued Operations – Sale of Consumer Segment
On
February 16, 2024 , the Company
closed the sale of its Consumer segment consisting of Rotor Riot and Fat Shark. Accordingly, the Consumer segment has been classified
as Discontinued Operations and reported in accordance with the applicable accounting standards. See Note 23 for additional information
regarding the transaction. Set forth below are the results of operations for the Consumer segment for:
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Three
months ended January
31,
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Nine
months ended January
31,
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2024 |
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2023 |
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2024 |
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2023 |
Revenues |
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$ |
1,100,943 |
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$ |
1,438,961 |
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$ |
4,027,094 |
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$ |
4,164,531 |
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Cost
of goods sold |
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1,745,771 |
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1,239,420 |
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4,285,087 |
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3,579,679 |
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Gross Margin |
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(644,828 |
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199,541 |
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(257,993 |
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584,852 |
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Operating Expenses |
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Operations |
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288,059 |
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151,502 |
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671,864 |
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484,340 |
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Research and
development |
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36,379 |
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80,270 |
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113,682 |
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251,034 |
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Sales and marketing |
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286,918 |
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192,625 |
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978,435 |
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555,916 |
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General
and administrative |
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43,024 |
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116,837 |
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96,612 |
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276,321 |
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Total
operating expenses |
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654,380 |
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541,234 |
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1,860,593 |
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1,567,611 |
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Operating loss |
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(1,299,208 |
) |
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(341,693 |
) |
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(2,118,586 |
) |
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(982,759 |
) |
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Other (income)
expense |
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Interest expense |
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— |
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— |
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22,856 |
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— |
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Other,
net |
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(3 |
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(11,614 |
) |
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(153 |
) |
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(19,788 |
) |
Other (income)
expense |
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(3 |
) |
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(11,614 |
) |
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22,703 |
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(19,788 |
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Net
loss from discontinued operations |
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$ |
(1,299,205 |
) |
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$ |
(330,079 |
) |
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$ |
(2,141,289 |
) |
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$ |
(962,971 |
) |
Assets
and liabilities for the Consumer segment included:
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January 31, 2024 |
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April 30, 2023 |
Current assets |
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Cash |
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$ |
126,771 |
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$ |
86,656 |
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Accounts receivable, net |
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1,760 |
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61,107 |
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Inventory |
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1,545,667 |
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3,065,954 |
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Other |
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1,586,938 |
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2,069,438 |
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Total current assets |
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3,261,136 |
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5,283,155 |
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Intangible assets, net |
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20,000 |
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20,000 |
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Other |
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59,426 |
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3,853 |
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Operating lease right-of-use assets |
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376,751 |
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84,544 |
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Total long term assets |
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456,177 |
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108,397 |
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Current liabilities |
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Accounts payable |
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$ |
156,421 |
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$ |
606,872 |
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Accrued expenses |
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116,812 |
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109,480 |
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Debt obligations - short term |
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98,441 |
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— |
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Customer deposits |
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45,791 |
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244,688 |
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Operating lease liabilities |
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56,974 |
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49,461 |
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Total current liabilities |
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474,439 |
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1,010,501 |
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Long term liabilities - Operating lease liabilities |
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321,771 |
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41,814 |
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Working capital |
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$ |
2,786,697 |
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$ |
4,272,654 |
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