| Schedule of Liabilities of Discontinued Operation |
The carrying amounts of the major classes of
these liabilities as of October 31, 2017 are summarized as follows:
| |
|
October 31, 2017 |
|
| Assets: |
|
|
|
|
| Escrow receivable |
|
$ |
372,086 |
|
| |
|
|
|
|
| Assets of discontinued operations |
|
$ |
372,086 |
|
| Liabilities: |
|
|
|
|
| Distribution payable |
|
$ |
254,744 |
|
| |
|
|
|
|
| Liabilities of discontinued operations |
|
$ |
254,744 |
|
|
| Schedule of Discontinued Operation |
The following table
sets forth for the six months ended October 31, 2017, indicated selected financial data of the Company’s discontinued operations
of its memory product business from the date of merger to October 31, 2017.
| |
|
October 31, 2017 |
|
| Revenues |
|
$ |
7,885,310 |
|
| Cost of sales |
|
|
6,653,363 |
|
| Gross profit |
|
|
1,231,947 |
|
| Operating and other non-operating expenses (including impairment charge of 6,094,760) |
|
|
(7,406,271 |
) |
| Gain from extinguishment of liabilities |
|
|
245,256 |
|
| Gain from sale of discontinued operations |
|
|
102,023 |
|
| |
|
|
|
|
| Loss from discontinued operations |
|
$ |
(5,827,045 |
) |
The following table
sets forth for the three months ended October 31, 2017, indicated selected financial data of the Company’s discontinued operations
of its memory product business from the date of merger to October 31, 2017.
| |
|
October 31, 2017 |
|
| Revenues |
|
$ |
3,522,258 |
|
| Cost of sales |
|
|
3,239,915 |
|
| Gross profit |
|
|
282,343 |
|
| Operating and other non-operating expenses |
|
|
(385,219 |
) |
| Gain from extinguishment of liabilities |
|
|
245,256 |
|
| Gain from sale of discontinued operations |
|
|
102,023 |
|
| |
|
|
|
|
| Gain from discontinued operations |
|
$ |
244,403 |
|
|
| Schedule of Assets Acquired and Liabilities Assumed |
The net purchase price paid by the Company
was allocated to assets acquired and liabilities assumed on the records of the Company as follows:
| Current assets (including cash of $255,555) |
|
$ |
3,063,059 |
|
| Other assets |
|
|
45,984 |
|
| Goodwill |
|
|
6,094,760 |
|
| |
|
|
|
|
| Liabilities assumed (including a note payable – credit line of $1,096,504) |
|
|
(3,541,868 |
) |
| Net purchase price |
|
$ |
5,661,935 |
|
|
| Schedule of Selected Financial Data of the Company's Gain from Sale |
The following table
sets forth for the three and six months ended October 31, 2017, indicated selected financial data of the Company’s gain from
sale of the Dataram Memory business.
| Total consideration |
|
$ |
900,000 |
|
| Direct legal and sales commission expenses related to the sale |
|
|
(201,510 |
) |
| Estimated Dataram’s accrued expenses to be deducted from the sales proceeds |
|
|
(167,342 |
) |
| Total carrying value of Dataram Memory business on date of sale * |
|
|
(429,125 |
) |
| Net gain from sale of Dataram Memory business |
|
$ |
102,023 |
|
| Current assets |
|
$ |
3,271,426 |
|
| Other assets |
|
|
33,320 |
|
| Current liabilities |
|
|
(2,866,660 |
) |
| Liabilities – long term |
|
|
(8,961 |
) |
| * Total carrying value of Dataram Memory business on date of sale |
|
$ |
429,125 |
|
|