Discontinued Operations (Tables)
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3 Months Ended |
Nov. 30, 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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(88,000)
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Less: Transaction reconciliation – net cash paid by Vensure on behalf of the Company
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(2,516,000)
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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
|
|
|
5,496,000
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Discount recorded
|
|
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(1,492,000)
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Long-term note receivable
|
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$
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4,004,000
|
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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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November 30,
|
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August 31,
|
|
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2020
|
|
2020
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Cash
|
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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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Prepaid expenses and other current assets
|
|
|
—
|
|
|
—
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Deposits – workers’ compensation
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|
|
960,000
|
|
|
1,030,000
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Total current assets
|
|
|
960,000
|
|
|
1,030,000
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Fixed assets, net
|
|
|
—
|
|
|
—
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Deposits - workers' compensation
|
|
|
2,435,000
|
|
|
2,582,000
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Total assets
|
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$
|
3,395,000
|
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$
|
3,612,000
|
|
|
|
|
|
|
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Accounts payable and other current liabilities
|
|
$
|
—
|
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$
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—
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Payroll related liabilities
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|
|
—
|
|
|
—
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Accrued workers’ compensation cost
|
|
|
1,764,000
|
|
|
1,746,000
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Total current liabilities
|
|
|
1,764,000
|
|
|
1,746,000
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Accrued workers’ compensation cost
|
|
|
4,475,000
|
|
|
4,377,000
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Total liabilities
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|
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6,239,000
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|
|
6,123,000
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|
|
|
|
|
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Net liability
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$
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(2,844,000)
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$
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(2,511,000)
|
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Schedule of reported results for the discontinued operations by period |
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For the Quarter Ended
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|
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November 30,
|
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November 30,
|
|
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2020
|
|
2019
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Revenues (gross billings of $0.0 million and $93.5 million less WSE payroll cost of $0.0 million and $79.8 million, respectively for quarter ended)
|
|
$
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—
|
|
$
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13,697,000
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Cost of revenue
|
|
|
1,314,000
|
|
|
10,604,000
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Gross profit
|
|
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(1,314,000)
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|
|
3,093,000
|
|
|
|
|
|
|
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Operating expenses:
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|
|
|
|
|
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Salaries, wages and payroll taxes
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|
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—
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|
|
400,000
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Commissions
|
|
|
—
|
|
|
703,000
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Total operating expenses
|
|
|
—
|
|
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1,103,000
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(Loss) income from discontinued operations
|
|
$
|
(1,314,000)
|
|
$
|
1,990,000
|
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