Discontinued Operations (Tables)
|
3 Months Ended |
Nov. 30, 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
|
|
|
(2,516,000)
|
|
Less: Transaction reconciliation – estimate of reduction due to gross wages
|
|
|
(1,400,000)
|
|
Adjusted Note Receivable
|
|
|
5,496,000
|
|
Discount recorded
|
|
|
(1,492,000)
|
|
Long-term note receivable
|
|
$
|
4,004,000
|
|
| Schedule of carrying amounts of the classes of assets and liabilities from the Asset Sale included in discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
November 30,
|
|
August 31,
|
|
|
|
2020
|
|
2020
|
|
Cash
|
|
$
|
—
|
|
$
|
—
|
|
Accounts receivable and unbilled account receivable
|
|
|
—
|
|
|
—
|
|
Prepaid expenses and other current assets
|
|
|
—
|
|
|
—
|
|
Deposits – workers’ compensation
|
|
|
960,000
|
|
|
1,030,000
|
|
Total current assets
|
|
|
960,000
|
|
|
1,030,000
|
|
Fixed assets, net
|
|
|
—
|
|
|
—
|
|
Deposits - workers' compensation
|
|
|
2,435,000
|
|
|
2,582,000
|
|
Total assets
|
|
$
|
3,395,000
|
|
$
|
3,612,000
|
|
|
|
|
|
|
|
|
|
Accounts payable and other current liabilities
|
|
$
|
—
|
|
$
|
—
|
|
Payroll related liabilities
|
|
|
—
|
|
|
—
|
|
Accrued workers’ compensation cost
|
|
|
1,764,000
|
|
|
1,746,000
|
|
Total current liabilities
|
|
|
1,764,000
|
|
|
1,746,000
|
|
Accrued workers’ compensation cost
|
|
|
4,475,000
|
|
|
4,377,000
|
|
Total liabilities
|
|
|
6,239,000
|
|
|
6,123,000
|
|
|
|
|
|
|
|
|
|
Net liability
|
|
$
|
(2,844,000)
|
|
$
|
(2,511,000)
|
|
| Schedule of reported results for the discontinued operations by period |
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended
|
|
|
|
November 30,
|
|
November 30,
|
|
|
|
2020
|
|
2019
|
|
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)
|
|
$
|
—
|
|
$
|
13,697,000
|
|
Cost of revenue
|
|
|
1,314,000
|
|
|
10,604,000
|
|
Gross profit
|
|
|
(1,314,000)
|
|
|
3,093,000
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
Salaries, wages and payroll taxes
|
|
|
—
|
|
|
400,000
|
|
Commissions
|
|
|
—
|
|
|
703,000
|
|
Total operating expenses
|
|
|
—
|
|
|
1,103,000
|
|
(Loss) income from discontinued operations
|
|
$
|
(1,314,000)
|
|
$
|
1,990,000
|
|