Everything Blockchain, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

Discontinued Operations

12 Months Ended

Jan. 31, 2024

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 Years Ended January 31,
	2024			2023
Revenue	$	890		$	2,311
Cost of sales		210			1,540
Gross profit		680			771
Selling, general, and administrative		1,395			1,118
Depreciation and amortization		81			107
Total operating expenses		1,476			1,225
Loss from operations		(796	)		(454	)
Other income (expense), net		107			(57	)
Loss before income taxes		(689	)		(511	)
Income tax benefit		-			116
Net loss	$	(689	)	$	(395	)