Annual report pursuant to Section 13 and 15(d)

Discontinued Operations (Tables)

v3.20.2
Discontinued Operations (Tables)
12 Months Ended
Aug. 31, 2020
Discontinued Operations  
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

 

 

 

 

Gross proceeds

    

$

19,166,000

Cash received at closing – asset sale

 

 

(9,500,000)

Cash received at closing – working capital

 

 

(166,000)

Less:  Transaction reconciliation – working capital adjustment

 

 

(88,000)

Less:  Transaction reconciliation – net cash paid by Vensure on behalf of the Company

 

 

(2,475,000)

Less: Transaction reconciliation – estimate of reduction due to gross wages

 

 

(1,400,000)

Adjusted Note Receivable

 

 

5,537,000

Discount recorded

 

 

(1,492,000)

Long-term note receivable

 

$

4,045,000

 

Schedule of note receivable on disposal of business

The carrying amounts of the classes of assets and liabilities from the Vensure Asset Sale included in discontinued operations were as follows:

 

 

 

 

 

 

 

 

 

    

August 31, 2020

    

August 31, 2019

Cash

 

$

 —

 

$

 —

Accounts receivable and unbilled account receivable

 

 

 —

 

 

8,246,000

Prepaid expenses and other current assets

 

 

 —

 

 

171,000

Deposits – workers’ compensation

 

 

1,030,000

 

 

1,722,000

Total current assets

 

 

1,030,000

 

 

10,139,000

Fixed assets, net

 

 

 —

 

 

40,000

Deposits – workers’ compensation

 

 

2,581,000

 

 

5,527,000

Total assets

 

$

3,611,000

 

$

15,706,000

 

 

 

 

 

 

 

Accounts payable and other current liabilities

 

$

 —

 

$

458,000

Payroll related liabilities

 

 

 —

 

 

13,853,000

Accrued workers’ compensation cost

 

 

1,745,000

 

 

1,722,000

Total current liabilities

 

 

1,745,000

 

 

16,033,000

Accrued workers’ compensation cost

 

 

4,377,000

 

 

3,853,000

Total liabilities

 

 

6,122,000

 

 

19,886,000

Net liability

 

$

(2,511,000)

 

$

(4,180,000)

 

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

 

 

 

 

 

 

 

 

    

August 31, 2020

    

August 31, 2019

Cash

 

$

 —

 

$

 —

Accounts receivable and unbilled account receivable

 

 

 —

 

 

8,246,000

Prepaid expenses and other current assets

 

 

 —

 

 

171,000

Deposits – workers’ compensation

 

 

1,030,000

 

 

1,722,000

Total current assets

 

 

1,030,000

 

 

10,139,000

Fixed assets, net

 

 

 —

 

 

40,000

Deposits – workers’ compensation

 

 

2,581,000

 

 

5,527,000

Total assets

 

$

3,611,000

 

$

15,706,000

 

 

 

 

 

 

 

Accounts payable and other current liabilities

 

$

 —

 

$

458,000

Payroll related liabilities

 

 

 —

 

 

13,853,000

Accrued workers’ compensation cost

 

 

1,745,000

 

 

1,722,000

Total current liabilities

 

 

1,745,000

 

 

16,033,000

Accrued workers’ compensation cost

 

 

4,377,000

 

 

3,853,000

Total liabilities

 

 

6,122,000

 

 

19,886,000

Net liability

 

$

(2,511,000)

 

$

(4,180,000)

 

Schedule of reported results for the discontinued operations by period

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

August 31, 2020

 

August 31, 2019

Revenues (gross billings of $120.7 million and $279.3 million less WSE payroll cost of $103.0 million and $236.3 million, respectively for Year ended)

    

$

17,633,000

    

$

42,986,000

Cost of revenue

 

 

16,899,000

 

 

32,509,000

Gross profit

 

 

733,000

 

 

10,477,000

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

Salaries, wages and payroll taxes

 

 

553,000

 

 

1,418,000

Commissions

 

 

741,000

 

 

2,531,000

Total operating expenses

 

 

1,294,000

 

 

3,949,000

 

 

 

 

 

 

 

(Loss) income from discontinued operations

 

$

(561,000)

 

$

6,528,000