Discontinued Operations (Tables)
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12 Months Ended |
Aug. 31, 2020 |
Discontinued Operations |
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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 |
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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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|
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(9,500,000)
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Cash received at closing – working capital
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|
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(166,000)
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Less: Transaction reconciliation – working capital adjustment
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|
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(88,000)
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Less: Transaction reconciliation – net cash paid by Vensure on behalf of the Company
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(2,475,000)
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Less: Transaction reconciliation – estimate of reduction due to gross wages
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|
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(1,400,000)
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Adjusted Note Receivable
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|
|
5,537,000
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Discount recorded
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|
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(1,492,000)
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Long-term note receivable
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$
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4,045,000
|
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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:
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August 31, 2020
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August 31, 2019
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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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|
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8,246,000
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Prepaid expenses and other current assets
|
|
|
—
|
|
|
171,000
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Deposits – workers’ compensation
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|
|
1,030,000
|
|
|
1,722,000
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Total current assets
|
|
|
1,030,000
|
|
|
10,139,000
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Fixed assets, net
|
|
|
—
|
|
|
40,000
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Deposits – workers’ compensation
|
|
|
2,581,000
|
|
|
5,527,000
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Total assets
|
|
$
|
3,611,000
|
|
$
|
15,706,000
|
|
|
|
|
|
|
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Accounts payable and other current liabilities
|
|
$
|
—
|
|
$
|
458,000
|
Payroll related liabilities
|
|
|
—
|
|
|
13,853,000
|
Accrued workers’ compensation cost
|
|
|
1,745,000
|
|
|
1,722,000
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Total current liabilities
|
|
|
1,745,000
|
|
|
16,033,000
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Accrued workers’ compensation cost
|
|
|
4,377,000
|
|
|
3,853,000
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Total liabilities
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|
|
6,122,000
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|
|
19,886,000
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Net liability
|
|
$
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(2,511,000)
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|
$
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(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
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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
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Net liability
|
|
$
|
(2,511,000)
|
|
$
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(4,180,000)
|
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Schedule of reported results for the discontinued operations by period |
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For the Year Ended
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August 31, 2020
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August 31, 2019
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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
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Cost of revenue
|
|
|
16,899,000
|
|
|
32,509,000
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Gross profit
|
|
|
733,000
|
|
|
10,477,000
|
|
|
|
|
|
|
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Operating expenses:
|
|
|
|
|
|
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Salaries, wages and payroll taxes
|
|
|
553,000
|
|
|
1,418,000
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Commissions
|
|
|
741,000
|
|
|
2,531,000
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Total operating expenses
|
|
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1,294,000
|
|
|
3,949,000
|
|
|
|
|
|
|
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(Loss) income from discontinued operations
|
|
$
|
(561,000)
|
|
$
|
6,528,000
|
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