DISCONTINUED OPERATIONS

9 Months Ended

Nov. 30, 2017

On October 14, 2016, the Company decided to exit the field of medical marijuana edibles marketed under the Von Baron Farms brand.

The change of the business qualified as a discontinued operation of the Company and accordingly, the Company has excluded results of the operations from its Consolidated Statements of Operations to present this business in discontinued operations.

The following table shows the results of operations of 1PM for the period ended November 30, 2016 which are included in the loss from discontinued operations:

	Three Months Ended			Nine Months Ended
	November 30,			November 30,
	2016			2016
Revenue	$	6,845		$	49,358
Cost of goods		4,790			28,013
Gross profit		2,055			21,345
Selling and administrative expenses		33,922			1,039,024
Operating loss		(31,867	)		(1,017,679	)
Earnings from discontinued operations before income taxes		(31,867	)		(1,017,679	)
Income tax provision		-			-
Loss from discontinued operations, net of tax	$	(31,867	)	$	(1,017,679	)

1PM Industries 10-Q