Discontinued Operations (Tables)
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9 Months Ended |
May 31, 2021 |
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| Discontinued Operations |
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| 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 |
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|
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Gross proceeds
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$
|
19,166,000
|
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Cash received at closing – asset sale
|
|
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(9,500,000)
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Cash received at closing – working capital
|
|
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(166,000)
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|
Gross note receivable
|
|
$
|
9,500,000
|
|
|
|
|
|
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Less: Transaction reconciliation – estimated working capital adjustments
|
|
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(2,604,000)
|
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Adjusted Note Receivable
|
|
|
6,896,000
|
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Reserve for estimated potential claims
|
|
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(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 |
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|
|
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May 31,
|
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August 31,
|
|
|
|
2021
|
|
2020
|
|
Cash
|
|
$
|
—
|
|
$
|
—
|
|
Accounts receivable and unbilled account receivable
|
|
|
—
|
|
|
—
|
|
Prepaid expenses and other current assets
|
|
|
—
|
|
|
—
|
|
Deposits – workers’ compensation
|
|
|
623,000
|
|
|
1,030,000
|
|
Total current assets
|
|
|
623,000
|
|
|
1,030,000
|
|
Fixed assets, net
|
|
|
—
|
|
|
—
|
|
Deposits - workers' compensation
|
|
|
1,126,000
|
|
|
2,582,000
|
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Total assets
|
|
$
|
1,749,000
|
|
$
|
3,612,000
|
|
|
|
|
|
|
|
|
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Accounts payable and other current liabilities
|
|
$
|
—
|
|
$
|
—
|
|
Payroll related liabilities
|
|
|
—
|
|
|
—
|
|
Accrued workers’ compensation cost
|
|
|
1,687,000
|
|
|
1,746,000
|
|
Total current liabilities
|
|
|
1,687,000
|
|
|
1,746,000
|
|
Accrued workers’ compensation cost
|
|
|
3,050,000
|
|
|
4,377,000
|
|
Total liabilities
|
|
|
4,737,000
|
|
|
6,123,000
|
|
|
|
|
|
|
|
|
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Net liability
|
|
$
|
(2,988,000)
|
|
$
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(2,511,000)
|
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| Schedule of reported results for the discontinued operations by period |
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For the Three Months Ended
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For the Nine Months Ended
|
|
|
|
May 31,
|
|
May 31,
|
|
May 31,
|
|
May 31,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Revenues (gross billings of $0 and $0 million less worksite employee payroll cost of $0 million and $0 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 nine months ended)
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
17,632,000
|
|
Cost of revenue
|
|
|
(23,000)
|
|
|
1,490,000
|
|
|
1,512,000
|
|
|
17,252,000
|
|
Gross profit (loss)
|
|
|
23,000
|
|
|
(1,490,000)
|
|
|
(1,512,000)
|
|
|
380,000
|
|
|
|
|
|
|
|
|
|
|
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|
|
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Operating expenses:
|
|
|
|
|
|
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|
|
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Salaries, wages and payroll taxes
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
553,000
|
|
Commissions
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
741,000
|
|
Total operating expenses
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,294,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(Loss) income from discontinued operations
|
|
$
|
23,000
|
|
$
|
(1,490,000)
|
|
$
|
(1,512,000)
|
|
$
|
(914,000)
|
|