v3.26.1
DISCONTINUED OPERATIONS
 3 Months Ended
Mar. 31, 2026
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS

3. DISCONTINUED OPERATIONS

 

During the third quarter of fiscal 2025, the Company committed to a strategic exit of its retail specialty cheese business, which served as the primary component of its national distribution platform. In connection with this decision, the Company also elected to discontinue its related logistics operations and specialty cheese cutting activities. As part of this exit, the Company has sold the associated Pennsylvania production and distribution facility.

 

Accordingly, the operating results and related assets and liabilities of the retail specialty cheese business, including igourmet, along with the Company’s logistics subsidiaries (LII and IFP) and specialty cheese cutting operations, have been reclassified to discontinued operations for all periods presented.

 

The following information presents the major classes of line item of assets and liabilities included as part of discontinued operations in the consolidated balance sheets:

 

   March 31,   December 31, 
   2026   2025 
   (unaudited)     
Current assets - discontinued operations:        
Cash  $16,793   $85,027 
Accounts receivable   488    196,672 
Assets held for sale   -    6,144,793 
Total current assets - discontinued operations  $17,281   $6,426,492 
   March 31,   December 31, 
   2026   2025 
   (unaudited)     
Noncurrent assets - discontinued operations:        
ROU assets – financing leases, net  $      -   $215,509 
Property and equipment, net   -    - 
Total noncurrent assets - discontinued operations  $-   $215,509 

 

   March 31,   December 31, 
   2026   2025 
   (unaudited)     
Current liabilities - discontinued operations:        
Accounts payable and accrued liabilities  $20,771   $40,884 
Deferred revenue   -    342,000 
Accrued interest   -    64,084 
Notes payable, net   -    8,430,656 
Total current liabilities - discontinued operations  $20,771   $8,877,624 

 

The following information presents the major classes of line items constituting the after-tax loss from discontinued operations in the consolidated statements of operations:

 

   Three Months Ended 
   March 31,   March 31, 
   2026   2025 
   (unaudited)   (unaudited) 
Revenue  $-   $3,942,733 
Cost of goods sold   -    3,377,190 
Gross margin   -    565,543 
           
Selling, general, and administrative expenses   (454,439)   (1,049,169)
           
Gain on sale of assets   2,685,277    - 
Loss on early extinguishment of debt   (608,539)   - 
Other expense   (125,414)   (200,629)
Income (loss) from discontinued operations, net of tax  $1,496,885   $(684,255)

 

The following information presents the significant items related to discontinued operations in the statement of cash flows:

 

   Three Months Ended   Three Months Ended 
   March 31,
2026		   March 31,
2025		 
Operating activities:        
Adjustment to reconcile net loss to cash        
Net cash provided by (used in) operating activities        
Gain on sale of assets  $(2,685,277)  $- 
Loss on early extinguishment of debt   608,539    - 
Depreciation and amortization   -    36,553 
Changes in assets and liabilities:          
Accounts receivable, net   196,184    3,112,423 
Inventory   -    2,782,000 
Accounts payable and accrued liabilities   20,113    2,184,409 
Deferred revenue   342,000    1,899 
           
Investing activities:          
Cash paid for purchase of property and equipment   -    (87,181)
Proceeds from sale of fixed assets   10,000    - 
Cash received from sale of land and building, net of costs   8,782,365    - 
           
Financing activities:          
Payments on debt   (8,740,846)   (28,658)
Payments on financing leases   -    (54,024)