Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Tables)

v3.21.1
Discontinued Operations (Tables)
6 Months Ended
Feb. 28, 2021
Discontinued Operations  
Schedule of a reconciliation of the gross proceeds to the net proceeds from the Vensure Asset Sale as presented in the statement of cash flows

 

 

 

 

Gross proceeds

    

$

19,166,000

Cash received at closing – asset sale

 

 

(9,500,000)

Cash received at closing – working capital

 

 

(166,000)

Gross note receivable

 

$

9,500,000

Less: Transaction reconciliation – estimated working capital adjustments

 

 

(2,604,000)

 

 

 

 

Adjusted Note Receivable

 

 

6,896,000

Reserve for estimated potential claims

 

 

(2,892,000)

Long-term note receivable, estimated net realizable value

 

$

4,004,000

 

Schedule of carrying amounts of the classes of assets and liabilities from the Asset Sale included in discontinued operations

 

 

 

 

 

 

 

 

 

February 28,

 

August 31,

 

 

2021

 

2020

Cash

    

$

 —

    

$

 —

Accounts receivable and unbilled account receivable

 

 

 —

 

 

 —

Prepaid expenses and other current assets

 

 

 —

 

 

 —

Deposits – workers’ compensation

 

 

821,000

 

 

1,030,000

Total current assets

 

 

821,000

 

 

1,030,000

Fixed assets, net

 

 

 —

 

 

 —

Deposits - workers' compensation

 

 

2,071,000

 

 

2,582,000

Total assets

 

$

2,892,000

 

$

3,612,000

 

 

 

 

 

 

 

Accounts payable and other current liabilities

 

$

 —

 

$

 —

Payroll related liabilities

 

 

 —

 

 

 —

Accrued workers’ compensation cost

 

 

1,620,000

 

 

1,746,000

Total current liabilities

 

 

1,620,000

 

 

1,746,000

Accrued workers’ compensation cost

 

 

4,085,000

 

 

4,377,000

Total liabilities

 

 

5,705,000

 

 

6,123,000

 

 

 

 

 

 

 

Net liability

 

$

(2,813,000)

 

$

(2,511,000)

 

Schedule of reported results for the discontinued operations by period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

    

February 28,

    

February 29,

    

February 28,

    

February 29,

 

 

2021

 

2020

 

2021

 

2020

Revenues (gross billings of $0 and $27.8 million less worksite employee payroll cost of $0 million and $23.8 million, respectively for the three months ended; gross billings of $0 million and $120.6 million less worksite employee payroll cost of $0 million and $103.0 million, respectively for the six months ended)

 

$

 —

    

$

4,026,000

    

$

 —

    

$

17,632,000

Cost of revenue

 

 

221,000

 

 

5,228,000

 

 

1,535,000

 

 

15,762,000

Gross profit (loss)

 

 

(221,000)

 

 

(1,202,000)

 

 

(1,535,000)

 

 

1,870,000

 

 

 

  

 

 

 

 

 

  

 

 

 

Operating expenses:

 

 

  

 

 

 

 

 

  

 

 

 

Salaries, wages and payroll taxes

 

 

 —

 

 

153,000

 

 

 —

 

 

553,000

Commissions

 

 

 —

 

 

38,000

 

 

 —

 

 

741,000

Total operating expenses

 

 

 —

 

 

191,000

 

 

 —

 

 

1,294,000

(Loss) income from discontinued operations

 

$

(221,000)

 

$

(1,393,000)

 

$

(1,535,000)

 

$

576,000