| Schedule of Disposal Groups Including Discontinued Operations, Reconciliation of Gross Proceeds to Net Proceeds as Presented in Cash Flow Statement |
The following is a reconciliation of the gross proceeds to the net proceeds from the Vensure Asset Sale as presented in the balance sheet for the period ended November 30, 2021.
|
|
|
|
|
|
| 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 |
|
|
| Disposal Groups, Including Discontinued Operations |
The carrying amounts of the classes of assets and liabilities from the Vensure Asset Sale included in discontinued operations are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
November 30,
2021 |
|
August 31,
2021 |
| Cash |
$ |
— |
|
|
$ |
— |
|
| Accounts receivable and unbilled account receivable |
— |
|
|
— |
|
| Prepaid expenses and other current assets |
— |
|
|
— |
|
| Deposits – workers’ compensation |
243,000 |
|
|
356,000 |
|
| Total current assets |
243,000 |
|
|
356,000 |
|
| Fixed assets, net |
— |
|
|
— |
|
| Deposits – workers’ compensation |
627,000 |
|
|
883,000 |
|
| Total assets |
$ |
870,000 |
|
|
$ |
1,239,000 |
|
|
|
|
|
| Accounts payable and other current liabilities |
$ |
— |
|
|
$ |
— |
|
| Payroll related liabilities |
— |
|
|
— |
|
| Accrued workers’ compensation cost |
1,414,000 |
|
|
1,516,000 |
|
| Total current liabilities |
1,414,000 |
|
|
1,516,000 |
|
| Accrued workers’ compensation cost |
3,631,000 |
|
|
3,765,000 |
|
| Total liabilities |
5,045,000 |
|
|
5,281,000 |
|
|
|
|
|
| Net liability |
$ |
(4,175,000) |
|
|
$ |
(4,042,000) |
|
|
| Schedule of Disposal Groups Including Discontinued Operations Income Statement |
Reported results for the discontinued operations by period were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended
|
|
November 30, 2021 |
|
November 30, 2020 |
| Revenues |
$ |
— |
|
|
$ |
— |
|
| Cost of revenue |
133,000 |
|
|
1,314,000 |
|
| Gross profit |
(133,000) |
|
|
(1,314,000) |
|
|
|
|
|
| Operating expenses: |
|
|
|
| Salaries, wages and payroll taxes |
— |
|
|
— |
|
| Commissions |
— |
|
|
— |
|
| Total operating expenses |
— |
|
|
— |
|
|
|
|
|
| (Loss) income from discontinued operations |
$ |
(133,000) |
|
|
$ |
(1,314,000) |
|
|