Discontinued Operations (Tables)
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6 Months Ended |
12 Months Ended |
Feb. 29, 2020 |
Aug. 31, 2019 |
Discontinued Operations |
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Schedule of a reconciliation of the gross proceeds to the net proceeds from the Asset Sale as presented in the statement of cash flows |
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Gross proceeds
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$
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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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Discount recorded
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(1,818,000)
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Less: Transaction reconciliation – working capital adjustment
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(1,943,000)
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Adjusted Note Receivable
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5,739,000
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Short-term note receivable
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358,000
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Long-term note receivable
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$
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5,381,000
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Schedule of carrying amounts of the classes of assets and liabilities from the Asset Sale included in discontinued operations |
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February 29,
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August 31,
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2020
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2019
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Unaudited
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Unaudited
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Cash
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$
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—
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$
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—
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Accounts receivable and unbilled account receivable
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—
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8,261,000
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Prepaid expenses and other current assets
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—
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171,000
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Deposits – workers’ compensation
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1,924,000
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1,722,000
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Total current assets
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1,924,000
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10,154,000
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Fixed assets, net
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—
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40,000
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Deposits – workers’ compensation
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3,324,000
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5,527,000
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Total assets
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$
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5,248,000
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$
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15,721,000
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Accounts payable and other current liabilities
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$
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—
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$
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457,000
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Payroll related liabilities
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—
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13,583,000
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Accrued workers’ compensation cost
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1,924,000
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1,722,000
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Total current liabilities
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1,924,000
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16,032,000
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Accrued workers’ compensation cost
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5,652,000
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3,853,000
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Total liabilities
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7,576,000
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19,885,000
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Net assets/(liability)
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$
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(2,328,000)
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$
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(4,164,000)
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August 31, 2019
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August 31, 2018
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Cash
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$
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—
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$
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—
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Accounts receivable and unbilled account receivable
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8,261,000
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5,721,000
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Prepaid expenses and other current assets
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171,000
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118,000
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Deposits – workers’ compensation
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1,722,000
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1,588,000
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Total current assets
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10,154,000
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7,427,000
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Fixed assets, net
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40,000
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42,000
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Deposits – workers’ compensation
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5,527,000
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2,091,000
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Total assets
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$
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15,721,000
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$
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9,560,000
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Accounts payable and other current liabilities
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$
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457,000
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$
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18,000
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Payroll related liabilities
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13,853,000
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|
8,501,000
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Accrued workers’ compensation cost
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1,722,000
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|
290,000
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Total current liabilities
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16,032,000
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8,808,000
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Accrued workers’ compensation cost
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3,853,000
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|
856,000
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Total liabilities
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19,885,000
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9,664,000
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Net assets/(liability)
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$
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(4,164,000)
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$
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(104,000)
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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 Six Months Ended
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February 29,
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February 28,
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February 29,
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February 28,
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2020
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2019
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2020
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2019
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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 $117.7 million, respectively for six months ended)
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$
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3,450,000
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$
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12,002,000
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$
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17,138,000
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$
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21,688,000
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Cost of revenue
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5,038,000
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8,956,000
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15,535,000
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15,442,000
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Gross profit (loss)
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(1,587,000)
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3,046,000
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1,603,000
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6,246,000
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Operating expenses:
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Salaries, wages and payroll taxes
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152,000
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898,000
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|
658,000
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1,752,000
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Commissions
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45,000
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554,000
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748,000
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1,076,000
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Total operating expenses
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197,000
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1,452,000
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1,406,000
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2,828,000
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(Loss) income from discontinued operations
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$
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(1,784,000)
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$
|
1,594,000
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$
|
197,000
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$
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3,418,000
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For the Year Ended
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August 31,
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August 31,
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2019
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|
2018
|
Revenues (gross billings of $313.3 million and $210.3 million less worksite employee payroll cost of $265.3 million and $177.2 million, respectively for the year ended)
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$
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48,013,000
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$
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33,139,000
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Cost of revenue
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36,452,000
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27,970,000
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Gross profit (loss)
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11,561,000
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5,169,000
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Operating expenses:
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Salaries, wages and payroll taxes
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3,032,000
|
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2,442,000
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Commissions
|
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2,532,000
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1,501,000
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Total operating expenses
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5,564,000
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3,943,000
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Operating income from discontinued operations
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|
5,997,000
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|
1,226,000
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Provision for income tax expense from discontinued operations
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—
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—
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Net income from discontinued operations
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$
|
5,997,000
|
|
$
|
1,226,000
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