Note 3 - Discontinued Operations

6 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

NOTE 3 – DISCONTINUED OPERATIONS

On March 14, 2025, the Company entered into an asset purchase agreement (the “APA”) and closed the transactions contemplated therein with DeRoyal Industries, Inc., a Tennessee corporation (“DeRoyal”), to sell and assign to DeRoyal assets and liabilities exclusively related to the business of providing products for automated, direct-to-drain medical fluid disposal, including the Company’s STREAMWAY® product line (the “Eagan Business”). These assets were operated by the Company’s wholly owned subsidiary, Skyline Medical, and were previously reported in the Company’s Eagan operating segment. The purchased assets exclusively related to the Eagan Business included but were not limited to cash, certain accounts receivable, inventories, patents, fixed assets, and real property leased by the Company and exclusively used in connection with the Eagan Business. The total purchase price for the assets was $625,000, plus the assumption of certain liabilities related to the Eagan Business including the lease for the office and warehouse space located at 2915 Commers Drive Suite 900 Eagan, MN 55121, certain accounts payable, and contract liabilities associated with the Eagan Business. The ongoing activities of the former Eagan operating segment are limited to wind down activities. As a result of these developments, the former Eagan operating segments have been reclassified to discontinued operations in these condensed consolidated financial statements for all periods presented.

The balance sheet as of June 30, 2026, does not include any assets and liabilities of discontinued operations. The following table presents a reconciliation of the carrying amounts of the major classes of assets and liabilities to the current assets and liabilities of discontinued operations as presented in the Company’s condensed consolidated balance sheet as of June 30, 2025:

		June 30, 2025
Assets:
Accounts receivable, net		$	37,297
Prepaid expense and other assets			10,426
Total current assets of discontinued operations			47,723

Other long-term assets			4,031
Total assets of discontinued operations		$	51,754

Liabilities:
Accounts payable		$	1,149
Accrued expenses and other liabilities			252,015
Lease liability			89,040
Total current liabilities of discontinued operations			342,204

Total liabilities		$	342,204

The statement of net loss as of June 30, 2026, does not include any discontinued operation activity. The following table provides details about the major classes of line items constituting the loss from discontinued operations presented in the Company’s condensed consolidated statement of net loss for the three and six months ended June 30, 2025:

		For the three months ended June 30, 2025				For the six months ended June 30, 2025
Revenue		$	-			$	157,179
Cost of sales			-				122,800
Gross profit from discontinued operations			-				34,379

Operating expenses:
General and administrative			101,103				204,341
Research and development			2,669				125,495
Sales and marketing			-				130,318
Total operating expenses			103,772				460,154
Total operating (loss) from discontinued operations			(103,772	)			(425,775	)
Gain on disposal of discontinued operations			-				172,451
Other (expense)			12,205				4,300
Net (loss) from discontinued operations		$	(91,567	)		$	(249,024	)

The gain on disposal of discontinued operations represents the gain on assets sold and liabilities assumed by DeRoyal.