Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Tables)

v3.20.4
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