Discontinued Operations (Tables)
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12 Months Ended |
Aug. 31, 2021 |
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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|
|
|
Gross proceeds
|
|
$
|
19,166,000
|
Cash received at closing – asset sale
|
|
|
(9,500,000)
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Cash received at closing – working capital
|
|
|
(166,000)
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Gross note receivable
|
|
$
|
9,500,000
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Less: Transaction reconciliation – estimated working capital adjustment
|
|
|
(2,604,000)
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Adjusted note receivable
|
|
|
6,896,000
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Less: Reserve for estimated potential claims
|
|
|
(2,892,000)
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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 |
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|
|
|
|
|
|
|
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August 31,
|
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August 31,
|
|
|
2021
|
|
2020
|
Cash
|
|
$
|
—
|
|
$
|
—
|
Accounts receivable and unbilled account receivable
|
|
|
—
|
|
|
—
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Prepaid expenses and other current assets
|
|
|
—
|
|
|
—
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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
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Total assets
|
|
$
|
1,239,000
|
|
$
|
3,612,000
|
|
|
|
|
|
|
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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
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Net liability
|
|
$
|
(5,688,000)
|
|
$
|
(2,511,000)
|
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Schedule of reported results for the discontinued operations by period |
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|
|
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For the Year Ended
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|
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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:
|
|
|
|
|
|
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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 |
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|
|
|
|
|
|
|
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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
|
|
$
|
—
|
|
$
|
—
|
|