Everything Blockchain, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

Discontinued Operations

9 Months Ended

Oct. 31, 2023

Note 4. Discontinued Operations

On October 31, 2023, the Board of Directors approved, and the Company completed, the sale of Mercury to Chris Carter, founder and CEO of Mercury. The sales price consisted of 115,000 shares of Company common stock and 60,000 shares of Company Series C Preferred Stock, owned by Chris Carter, for a total sales price of $216,583. The sales price was primarily based on estimated net assets of Mercury.

In the consolidated statements of cash flows, the cash flows of discontinued operations were separately classified or aggregated under operating and investing activities.

The remaining notes to the consolidated financial statements were updated to reflect the impact of these discontinued operations. All discussions and amounts in the consolidated financial statements and related notes for all periods presented relate to continuing operations, unless otherwise noted.

The following table summarizes the components of assets and liabilities of discontinued operations (in thousands).

	As of January 31,
	2023
Current assets
Cash	$	167
Accounts receivable, net		89
Inventory		64
Prepaid expenses		62
Total current assets		382
Property, plant and equipment, net		655
Total assets	$	1,037

Current liabilities
Accounts payable and accrued expenses	$	79
Current portion of long-term debt		474
Deferred revenue		29
Total current liabilities	$	582
Long-term liabilities
Debt		47
Total long-term liabilities	$	47
Total liabilities	$	629

The following table summarizes the results of discontinued operations (in thousands).

	For the Three Months Ended						For the Nine Months Ended
	October 31,						October 31,
	2023			2022			2023			2022

Revenue	$	285		$	1,759		$	890		$	2,220
Cost of sales		79			1,475			210			1,546
Gross profit		206			284			680			674
Selling, general, and administrative		345			352			1,395			839
Depreciation and amortization		24			27			81			80
Total operating expenses		369			379			1,476			919
Loss from operations		(163	)		(95	)		(796	)		(245	)
Other income (expense), net		143			(18	)		106			(41	)
Loss before income taxes		(20	)		(113	)		(690	)		(286	)
Income tax benefit		-			(26	)		-			(67	)
Net loss	$	(20	)	$	(87	)	$	(690	)	$	(219	)