Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v2.4.0.8
Discontinued Operations
12 Months Ended
Dec. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Note 4 — Discontinued Operations
 
In an effort to improve working capital, cure then existing debt defaults and pay down debts, on June 15, 2012, the Company sold and licensed those of its assets (including equipment, tooling, certain patents and trademarks) (the “TDG Assets”) that comprised its tactical defense group, which engaged in the business of selling and licensing products and providing services, directly and indirectly, to military, defense and security organizations (the “Business”). We recorded a gain of $5,837,607 from the asset sale.
 
In accordance with ASC 205-20, the sale of the TDG Assets have been accounted for as discontinued operation. Accordingly, the operating results of the TDG Assets for the years ended December 31, 2013 and 2012 have been reclassified as discontinued operations on the Consolidated Statement of Operations. Below is a summary of these results:
 
 
 
For Years
 
 
 
Ended December 31,
 
 
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Sales of Products
 
$
 
$
1,768,754
 
Sales of Engineering Services
 
 
 
 
358,921
 
 
 
 
 
 
 
 
 
Total Sales
 
 
 
 
2,127,675
 
 
 
 
 
 
 
 
 
Total Cost of Sales
 
 
 
 
1,273,907
 
 
 
 
 
 
 
 
 
Gross Profit
 
 
 
 
853,768
 
 
 
 
 
 
 
 
 
Operating Expenses:
 
 
 
 
 
 
 
Research and Development
 
 
 
 
295,138
 
Selling and Marketing
 
 
 
 
200,378
 
General and Administrative
 
 
 
 
 
Depreciation and Amortization
 
 
 
 
 
Interest Expense on Senior Debt*
 
 
 
 
353,584
 
Amortization Senior Debt Discount*
 
 
 
 
752,248
 
Income (Loss) from Discontinued Operations
 
 
 
 
(747,580)
 
 
 
 
 
 
 
 
 
Gain (Loss) on Disposal of Discontinued Operations
 
 
 
 
5,837,607
 
Provision (Benefit) for Income Taxes (Note 21)
 
 
 
 
19,800
 
 
 
 
 
 
5,817,807
 
Net Income (Loss) from Discontinued Operations
 
$
 
$
5,070,227
 
 
 
 
 
 
 
 
 
Basic Income (Loss) per Share
 
$
 
$
1.43
 
Diluted Income (Loss) per Share
 
$
 
$
1.43
 
Weighted-average Shares Outstanding Basic (Note 6)
 
 
 
 
3,536,865
 
Weighted-average Shares Outstanding Diluted (Note 6)
 
 
 
 
3,651,100
 
 
* Amounts reported represent the interest expense and the amortization of the discount on the Senior Term debt that was required to be repaid from the proceeds of the TDG Asset sale.