Discontinued Operations (Tables)
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9 Months Ended |
May 31, 2020 |
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| 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
|
|
$
|
19,166,000
|
|
Cash received at closing – asset sale
|
|
|
(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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(1,283,000)
|
|
Adjusted Note Receivable
|
|
|
6,399,000
|
|
Short-term note receivable
|
|
|
1,291,000
|
|
Long-term note receivable
|
|
$
|
5,108,000
|
|
| Schedule of note receivable on disposal of business |
The carrying amounts of the classes of assets and liabilities from the Asset Sale included in discontinued operations were as follows:
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|
|
|
|
|
|
|
|
|
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May 31,
|
|
August 31,
|
|
|
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2020
|
|
2019
|
|
|
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Unaudited
|
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Unaudited
|
|
Cash
|
|
$
|
-
|
|
$
|
-
|
|
Accounts receivable and unbilled account receivable
|
|
|
-
|
|
|
8,526,000
|
|
Prepaid expenses and other current assets
|
|
|
-
|
|
|
171,000
|
|
Deposits – workers’ compensation
|
|
|
2,386,000
|
|
|
1,722,000
|
|
Total current assets
|
|
|
2,386,000
|
|
|
10,419,000
|
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Fixed assets, net
|
|
|
-
|
|
|
40,000
|
|
Deposits - workers' compensation
|
|
|
1,749,000
|
|
|
5,527,000
|
|
Total assets
|
|
$
|
4,135,000
|
|
$
|
15,986,000
|
|
Accounts payable and other current liabilities
|
|
$
|
-
|
|
$
|
457,000
|
|
Payroll related liabilities
|
|
|
-
|
|
|
7,879,000
|
|
Accrued workers’ compensation cost
|
|
|
2,386,000
|
|
|
1,722,000
|
|
Total current liabilities
|
|
|
2,386,000
|
|
|
10,058,000
|
|
Accrued workers’ compensation cost
|
|
|
5,533,000
|
|
|
3,853,000
|
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Total liabilities
|
|
|
7,919,000
|
|
|
13,911,000
|
|
Net assets/(liability)
|
|
$
|
(3,784,000)
|
|
$
|
2,075,000
|
|
| Schedule of carrying amounts of the classes of assets and liabilities from the Asset Sale included in discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
May 31,
|
|
August 31,
|
|
|
|
2020
|
|
2019
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Cash
|
|
$
|
-
|
|
$
|
-
|
|
Accounts receivable and unbilled account receivable
|
|
|
-
|
|
|
8,526,000
|
|
Prepaid expenses and other current assets
|
|
|
-
|
|
|
171,000
|
|
Deposits – workers’ compensation
|
|
|
2,386,000
|
|
|
1,722,000
|
|
Total current assets
|
|
|
2,386,000
|
|
|
10,419,000
|
|
Fixed assets, net
|
|
|
-
|
|
|
40,000
|
|
Deposits - workers' compensation
|
|
|
1,749,000
|
|
|
5,527,000
|
|
Total assets
|
|
$
|
4,135,000
|
|
$
|
15,986,000
|
|
Accounts payable and other current liabilities
|
|
$
|
-
|
|
$
|
457,000
|
|
Payroll related liabilities
|
|
|
-
|
|
|
7,879,000
|
|
Accrued workers’ compensation cost
|
|
|
2,386,000
|
|
|
1,722,000
|
|
Total current liabilities
|
|
|
2,386,000
|
|
|
10,058,000
|
|
Accrued workers’ compensation cost
|
|
|
5,533,000
|
|
|
3,853,000
|
|
Total liabilities
|
|
|
7,919,000
|
|
|
13,911,000
|
|
Net assets/(liability)
|
|
$
|
(3,784,000)
|
|
$
|
2,075,000
|
|
| 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 Nine Months Ended
|
|
|
|
May 31,
|
|
May 31,
|
|
May 31,
|
|
May 31,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Revenues (gross billings of $0 and $82.3 million less worksite employee payroll cost of $0 million and $69.7 million, respectively for the three months ended; gross billings of $120.0 million and $221.7 million less worksite employee payroll cost of $103.3 million and $187.3 million, respectively for Nine Months ended)
|
|
$
|
-
|
|
$
|
12,666,000
|
|
$
|
17,138,000
|
|
$
|
34,354,000
|
|
Cost of revenue
|
|
|
1,490,000
|
|
|
10,125,000
|
|
|
17,025,000
|
|
|
25,567,000
|
|
Gross profit (loss)
|
|
|
(1,490,000)
|
|
|
2,541,000
|
|
|
113,000
|
|
|
8,787,000
|
|
|
|
|
|
|
|
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Operating expenses:
|
|
|
|
|
|
|
|
|
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|
Salaries, wages and payroll taxes
|
|
|
-
|
|
|
662,000
|
|
|
658,000
|
|
|
2,414,000
|
|
Commissions
|
|
|
-
|
|
|
701,000
|
|
|
748,000
|
|
|
1,777,000
|
|
Total operating expenses
|
|
|
-
|
|
|
1,363,000
|
|
|
1,406,000
|
|
|
4,191,000
|
|
(Loss) income from discontinued operations
|
|
$
|
(1,490,000)
|
|
$
|
1,178,000
|
|
$
|
(1,293,000)
|
|
$
|
4,596,000
|
|