General form of registration statement for all companies including face-amount certificate companies

Discontinued Operations (Tables)

v3.20.1
Discontinued Operations (Tables)
6 Months Ended 12 Months Ended
Feb. 29, 2020
Aug. 31, 2019
Discontinued Operations    
Schedule of a reconciliation of the gross proceeds to the net proceeds from the 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)

Discount recorded

 

 

(1,818,000)

Less: Transaction reconciliation – working capital adjustment

 

 

(1,943,000)

Adjusted Note Receivable

 

 

5,739,000

Short-term note receivable

 

 

358,000

Long-term note receivable

 

$

5,381,000

 

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

 

 

 

 

 

 

 

 

 

February 29,

 

August 31,

 

 

2020

 

2019

 

 

Unaudited

 

Unaudited

Cash

 

$

 —

 

$

 —

Accounts receivable and unbilled account receivable

 

 

 —

 

 

 8,261,000

Prepaid expenses and other current assets

 

 

 —

 

 

171,000

Deposits – workers’ compensation

 

 

1,924,000

 

 

1,722,000

Total current assets

 

 

1,924,000

 

 

10,154,000

Fixed assets, net

 

 

 —

 

 

40,000

Deposits – workers’ compensation

 

 

3,324,000

 

 

5,527,000

Total assets

 

$

5,248,000

 

$

15,721,000

 

 

 

 

 

 

 

Accounts payable and other current liabilities

 

$

 —

 

$

457,000

Payroll related liabilities

 

 

 —

 

 

 13,583,000

Accrued workers’ compensation cost

 

 

1,924,000

 

 

1,722,000

Total current liabilities

 

 

1,924,000

 

 

 16,032,000

Accrued workers’ compensation cost

 

 

5,652,000

 

 

3,853,000

Total liabilities

 

 

7,576,000

 

 

 19,885,000

 

 

 

 

 

 

 

Net assets/(liability)

 

$

(2,328,000)

 

$

 (4,164,000)

 

 

 

 

 

 

 

 

 

    

August 31, 2019

    

August 31, 2018

Cash

 

$

 —

 

$

 —

Accounts receivable and unbilled account receivable

 

 

8,261,000

 

 

5,721,000

Prepaid expenses and other current assets

 

 

171,000

 

 

118,000

Deposits – workers’ compensation

 

 

1,722,000

 

 

1,588,000

Total current assets

 

 

10,154,000

 

 

7,427,000

Fixed assets, net

 

 

40,000

 

 

42,000

Deposits – workers’ compensation

 

 

5,527,000

 

 

2,091,000

Total assets

 

$

15,721,000

 

$

9,560,000

 

 

 

 

 

 

 

Accounts payable and other current liabilities

 

$

457,000

 

$

18,000

Payroll related liabilities

 

 

 13,853,000

 

 

 8,501,000

Accrued workers’ compensation cost

 

 

1,722,000

 

 

290,000

Total current liabilities

 

 

 16,032,000

 

 

 8,808,000

Accrued workers’ compensation cost

 

 

3,853,000

 

 

856,000

Total liabilities

 

 

 19,885,000

 

 

 9,664,000

 

 

 

 

 

 

 

Net assets/(liability)

 

$

 (4,164,000)

 

$

 (104,000)

 

Schedule of reported results for the discontinued operations by period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

    

February 29,

    

February 28,

    

February 29,

    

February 28,

 

 

2020

 

2019

 

2020

 

2019

Revenues (gross billings of $26.3 million and $74.4 million less worksite employee payroll cost of $22.8 million and $62.4 million, respectively for the three months ended; gross billings of $120.4 million and $139.4 million less worksite employee payroll cost of $103.3 million and $117.7 million, respectively for six months ended)

 

$

3,450,000

    

$

12,002,000

    

$

17,138,000

    

$

21,688,000

Cost of revenue

 

 

5,038,000

 

 

8,956,000

 

 

15,535,000

 

 

15,442,000

Gross profit (loss)

 

 

(1,587,000)

 

 

3,046,000

 

 

1,603,000

 

 

6,246,000

 

 

 

  

 

 

  

 

 

  

 

 

  

Operating expenses:

 

 

  

 

 

  

 

 

  

 

 

  

Salaries, wages and payroll taxes

 

 

152,000

 

 

898,000

 

 

658,000

 

 

1,752,000

Commissions

 

 

45,000

 

 

554,000

 

 

748,000

 

 

1,076,000

Total operating expenses

 

 

197,000

 

 

1,452,000

 

 

1,406,000

 

 

2,828,000

 

 

 

  

 

 

  

 

 

  

 

 

  

(Loss) income from discontinued operations

 

$

(1,784,000)

 

$

1,594,000

 

$

197,000

 

$

3,418,000

 

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

August 31, 

 

August 31, 

 

 

2019

 

2018

Revenues (gross billings of $313.3 million and $210.3 million less worksite employee payroll cost of $265.3 million and $177.2 million, respectively for the year ended)

    

$

48,013,000

    

$

33,139,000

Cost of revenue

 

 

36,452,000

 

 

27,970,000

Gross profit (loss)

 

 

11,561,000

 

 

5,169,000

 

 

 

 

 

 

 

Operating expenses:

 

 

  

 

 

  

Salaries, wages and payroll taxes

 

 

3,032,000

 

 

2,442,000

Commissions

 

 

2,532,000

 

 

1,501,000

Total operating expenses

 

 

5,564,000

 

 

3,943,000

Operating income from discontinued operations

 

 

5,997,000

 

 

1,226,000

Provision for income tax expense from discontinued operations

 

 

 —

 

 

 —

Net income from discontinued operations

 

$

5,997,000

 

$

1,226,000