3) Discontinued Operations ABC Assets’ Discontinued Operations As a result of the Board ABC Resolution and Sherwood Agreement, as of March 31, 2025, the Company determined that the ABC Assets met the discontinued operations accounting criteria. Accordingly, the Company classified the ABC Assets’ operations as discontinued operations in its condensed consolidated statements of operations for all periods presented. Condensed Consolidated statement of operations related to the ABC Assets’ discontinued operations: | | | | | | | | | For the Six Months Ended June 30, | | | 2026 | | 2025 | Net sales | | $ | — | | $ | 1,346,445 | Cost of goods sold | | | — | | | 379,628 | Gross profit | | | — | | | 966,817 | Selling, general and administrative | | | — | | | 964,573 | Research and development expense | | | — | | | 82,957 | Depreciation and amortization expense | | | — | | | 315,858 | Interest expense, promissory note | | | — | | | 163,094 | Loss from discontinued operations before income tax | | | — | | | (559,665) | Provision for income taxes | | | — | | | — | Loss from discontinued operations | | $ | — | | $ | (559,665) |
| | | | | | | | | For the Three Months Ended June 30, | | | 2026 | | 2025 | Net sales | | $ | — | | $ | 632,908 | Cost of goods sold | | | — | | | 180,727 | Gross profit | | | — | | | 452,181 | Selling, general and administrative | | | — | | | (175,749) | Research and development expense | | | — | | | 770 | Depreciation and amortization expense | | | — | | | 126,344 | Interest expense, promissory note | | | — | | | — | Income from discontinued operations before income tax | | | — | | | 500,816 | Provision for income taxes | | | — | | | — | Income from discontinued operations | | $ | — | | $ | 500,816 |
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