| SCHEDULE OF AMMUNITION SEGMENT DISCONTINUED OPERATIONS |
The following table summarizes the results of operations of the Ammunition segment that are being reported as discontinued operations:
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For the Year Ended March 31, |
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2026(1) |
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2025 |
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Net revenues(2) |
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$ |
752,762 |
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$ |
74,867,419 |
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Cost of revenues |
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1,599,202 |
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83,079,531 |
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Gross profit |
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(846,440 |
) |
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(8,212,112 |
) |
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Operating expenses |
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Selling and marketing |
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15,819 |
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1,296,141 |
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Corporate general and administrative |
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232,104 |
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8,553,708 |
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Employee salaries and related expenses |
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84,502 |
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2,610,046 |
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Depreciation and amortization expense |
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- |
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35,866 |
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Total operating expenses |
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332,425 |
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12,495,761 |
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Loss from operations |
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(1,178,865 |
) |
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(20,707,873 |
) |
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Total other income/(expense) |
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583,231 |
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(617,756 |
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Impairment of assets |
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- |
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(45,847,430 |
) |
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Loss from discontinued operations before income taxes |
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(595,634 |
) |
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(67,173,059 |
) |
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Benefit for income taxes |
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(2,003,585 |
) |
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(1,560,922 |
) |
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Income (loss) from discontinued operations, net of tax |
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$ |
1,407,951 |
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$ |
(65,612,137 |
) |
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(1) Reflects results from April 1, 2025 through April 18, 2025 only, except for the benefit for income taxes. (2) Included in revenue for the years ended March 31, 2026 and 2025 are excise taxes of $27,185 and $5.0 million, respectively. There were no assets or liabilities classified as discontinued operations as of March 31, 2026. The following table summarizes the Ammunition segment assets and liabilities classified as discontinued operations in the accompanying consolidated balance sheet:
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March 31, 2025 |
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ASSETS |
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Accounts receivable, net |
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$ |
8,778,545 |
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Inventories |
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21,520,796 |
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Prepaid expenses |
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198,379 |
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Equipment, net |
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25,983,100 |
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Patents, net |
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1,409,542 |
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Total assets held for sale |
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$ |
57,890,362 |
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LIABILITIES |
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Accounts payable |
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$ |
2,513,533 |
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Accrued liabilities |
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3,280,449 |
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Current portion of construction note payable |
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286,200 |
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Construction note payable, net of unamortized issuance costs |
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10,564,816 |
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Total liabilities held for sale |
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$ |
16,644,998 |
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