Discontinued Operations (Tables)
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12 Months Ended |
Aug. 31, 2022 |
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| Discontinued Operations and Disposal Groups [Abstract] |
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| Schedule Of Disposal Groups Including Discontinued Operations, Reconciliation Of Gross Proceeds To Net Proceeds As Presented In Cash Flow Statement |
The following is a reconciliation of the gross proceeds to the net Note Receivable from the Vensure Asset Sale as presented on the Company’s consolidated balance sheet for Fiscal 2022.
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| Gross proceeds |
$ |
19,166,000 |
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| Cash received at closing – asset sale |
(9,500,000) |
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| Cash received at closing – working capital |
(166,000) |
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| Gross note receivable |
$ |
9,500,000 |
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| Less: Transaction reconciliation – estimated working capital adjustment |
(2,604,000) |
|
| Adjusted note receivable |
6,896,000 |
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| Less: Reserve for estimated potential claims |
(2,892,000) |
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| Less: Reserve on potential collectibility |
(4,004,000) |
|
| Long-term note receivable |
$ |
— |
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| Disposal Groups, Including Discontinued Operations |
The carrying amounts of the classes of assets and liabilities from the Vensure Asset Sale included in discontinued operations are as follows:
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August 31,
2022 |
|
August 31,
2021 |
| Deposits – workers’ compensation |
$ |
— |
|
|
$ |
356,000 |
|
| Total current assets |
— |
|
|
356,000 |
|
| Deposits – workers’ compensation |
— |
|
|
883,000 |
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| Total assets |
$ |
— |
|
|
$ |
1,239,000 |
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|
|
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| Accrued workers’ compensation cost |
$ |
1,362,000 |
|
|
$ |
1,516,000 |
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| Total current liabilities |
1,362,000 |
|
|
1,516,000 |
|
| Accrued workers’ compensation cost |
3,269,000 |
|
|
5,411,000 |
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| Total liabilities |
4,631,000 |
|
|
6,927,000 |
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|
|
|
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| Net liability |
$ |
(4,631,000) |
|
|
$ |
(5,688,000) |
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| Schedule Of Disposal Groups Including Discontinued Operations Income Statement |
Reported results for the discontinued operations by period were as follows:
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For the Year Ended
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|
August 31, 2022 |
|
August 31, 2021 |
| Revenues |
$ |
— |
|
|
$ |
— |
|
| Cost of revenue |
590,000 |
|
|
2,509,000 |
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| Gross profit |
(590,000) |
|
|
(2,509,000) |
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| Operating expenses: |
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| Salaries, wages and payroll taxes |
— |
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|
— |
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| Commissions |
— |
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|
— |
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| Total operating expenses |
— |
|
|
— |
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|
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| (Loss) income from discontinued operations |
$ |
(590,000) |
|
|
$ |
(2,509,000) |
|
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| Schedule of Net Operating Loss Carryforwards Used to Offset Income from Discontinued Operations |
The components of income tax expense for discontinued operations are as follows:
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For the Year Ended
August 31, |
|
2022 |
|
2021 |
| Provision for income tax benefits |
|
|
|
| Federal tax benefits |
$ |
(114,000) |
|
|
$ |
(500,000) |
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| State tax benefits |
(45,000) |
|
|
(129,000) |
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| Total tax benefits |
(159,000) |
|
|
(629,000) |
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| Valuation allowance on loss carryforwards |
159,000 |
|
|
629,000 |
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| Provision for income tax expense from discontinued operations |
$ |
— |
|
|
$ |
— |
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