Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.2.0.727
Discontinued Operations
 6 Months Ended
May. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS
The Company discontinued the Gel Perfect color nail polish business effective as of May 31, 2014. The Gel Perfect brand had declining sales in fiscal 2013 and fiscal 2014. During the third quarter of fiscal 2014 the Company discontinued its operations of the Mega-T brand of weight loss and dietary supplement business and on August 26, 2014, the Company entered into an asset purchase agreement (“Asset Purchase Agreement”) with Mega-T, LLC (“LLC”), an entity formed by Casla Partners Capital Fund I, LP for the sale of inventory, trademarks and other intellectual property rights related to the Mega-T brand. The Company decided to sell the Mega-T brand in order to focus its resources behinds its five remaining core brands. Both brands have been recorded as discontinued operations and are reflected as such in the Company's statement of operations.
The following table summarizes those components of the statement of operations for discontinued brands, which contains additional returns due to the finalization of the reserve for returns and allowances and notification that certain coop programs did not occur leading to the cancellation of specific contracts for this product for the three months ended May 31, 2015 and 2014 and for the six month May 31, 2015 and 2014 :
 
Three Months Ended May 31,
 
Three Months Ended May 31,
2015
 
2014
 
Mega
GP
Total
 
Mega
GP
Total
Net Sales
$
—

$
286,908

$
286,908

 
$
(2,015,314
)
$
(2,978,010
)
$
(4,993,324
)
 
 
 
 
 
 
 
 
Income before Provision for
 
 
 
 
 
 
 
  Income Taxes
—

286,908

286,908

 
(3,332,270
)
(4,912,103
)
(8,244,373
)
 
 
 
 
 
 
 
 
Provision for Income Tax
—

96,634

96,634

 
(1,222,757
)
(1,802,468
)
(3,025,225
)
 
 
 
 
 
 
 
 
Net Income (Loss)
$
—

$
190,274

$
190,274

 
$
(2,109,513
)
$
(3,109,635
)
$
(5,219,148
)
 
 
 
 
 
 
 
 
Earnings (loss) per Share:
 
 
 
 
 
 
 
      Basic
$
—

$
0.03

$
0.03

 
$
(0.30
)
$
(0.44
)
$
(0.74
)
      Diluted
$
—

$
0.03

$
0.03


$
(0.30
)
$
(0.44
)
$
(0.74
)
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
Basic
7,006,684

7,006,684

7,006,684

 
7,006,684

7,006,684

7,006,684

Diluted
7,006,684

7,006,684

7,006,684

 
7,006,684

7,006,684

7,006,684


 
 Six Months Ended May 31,
 
Six Months Ended May 31,
2015
 
2014
 
Mega
GP
Total
 
Mega
GP
Total
Net Sales
$
—

$
286,908

$
286,908

 
$
(806,720
)
$
(2,725,966
)
$
(3,532,686
)
 
 
 
 
 
 
 
 
Income before Provision for
 
 
 
 
 
 
 
  Income Taxes
—

286,908

286,908

 
(3,258,651
)
(4,984,508
)
$
(8,243,159
)
 
 
 
 
 
 
 
 
Provision for Income Tax
—

95,661

95,661

 
(1,830,259
)
(1,196,543
)
$
(3,026,802
)
 
 
 
 
 
 
 
 
Net Income (Loss)
$
—

$
191,247

$
191,247

 
$
(1,428,392
)
$
(3,787,965
)
$
(5,216,357
)
 
 
 
 
 
 
 
 
Earnings (loss) per Share:
 
 
 
 
 
 
 
      Basic
$
—

$
0.03

$
0.03

 
$
(0.20
)
$
(0.54
)
$
(0.74
)
      Diluted
$
—

$
0.03

$
0.03

 
$
(0.20
)
$
(0.54
)
$
(0.74
)
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
Basic
7,006,684

7,006,684

7,006,684

 
7,006,684

7,006,684

7,006,684

Diluted
7,006,684

7,006,684

7,006,684

 
7,006,684

7,006,684

7,006,684

The activity for Gel Perfect for the quarter is due to finalization of the reserve for returns and allowances and notification that certain programs did not occur leading to the cancellation of specific contracts for this product.