Annual report pursuant to Section 13 and 15(d)

Discontinued Operations (Tables)

v3.21.2
Discontinued Operations (Tables)
12 Months Ended
Aug. 31, 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 adjustment

 

 

(2,604,000)

Adjusted note receivable

 

 

6,896,000

Less: Reserve for estimated potential claims

 

 

(2,892,000)

Long-term note receivable

 

$

4,004,000

 

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

 

 

 

 

 

 

 

 

    

August 31, 

    

August 31, 

 

 

2021

 

2020

Cash

 

$

 —

 

$

 —

Accounts receivable and unbilled account receivable

 

 

 —

 

 

 —

Prepaid expenses and other current assets

 

 

 —

 

 

 —

Deposits – workers’ compensation

 

 

356,000

 

 

1,030,000

Total current assets

 

 

356,000

 

 

1,030,000

Fixed assets, net

 

 

 —

 

 

 —

Deposits – workers’ compensation

 

 

883,000

 

 

2,582,000

Total assets

 

$

1,239,000

 

$

3,612,000

 

 

 

 

 

 

 

Accounts payable and other current liabilities

 

$

 —

 

$

 —

Payroll related liabilities

 

 

 —

 

 

 —

Accrued workers’ compensation cost

 

 

1,516,000

 

 

1,746,000

Total current liabilities

 

 

1,516,000

 

 

1,746,000

Accrued workers’ compensation cost

 

 

5,411,000

 

 

4,377,000

Total liabilities

 

 

6,927,000

 

 

6,123,000

Net liability

 

$

(5,688,000)

 

$

(2,511,000)

 

Schedule of reported results for the discontinued operations by period

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

August 31, 

 

August 31, 

 

 

2021

 

2020

Revenues (gross billings of $120.7 million less WSE payroll cost of $103.0 million, respectively for the year ended August 31, 2020)

    

$

    

$

17,632,000

Cost of revenue

 

 

2,509,000

 

 

16,899,000

Gross profit

 

 

(2,509,000)

 

 

733,000

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

Salaries, wages and payroll taxes

 

 

 

 

553,000

Commissions

 

 

 

 

741,000

Total operating expenses

 

 

 

 

1,294,000

 

 

 

 

 

 

 

(Loss) income from discontinued operations

 

$

(2,509,000)

 

$

(561,000)

 

Summary of provision for income tax expense from discontinued operations

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

August 31, 

 

 

2021

 

2020

Provision for income tax expense

    

 

  

    

 

  

Federal tax expense

 

$

(500,000)

 

$

3,436,000

State tax expense

 

 

(129,000)

 

 

1,565,000

Total tax expense

 

 

(629,000)

 

 

5,001,000

Tax benefit for utilization of tax loss carryforwards

 

 

629,000

 

 

(5,001,000)

Provision for income tax expense from discontinued operations

 

$

 —

 

$

 —