Discontinued Operations (Tables)
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9 Months Ended |
May 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 proceeds from the Vensure Asset Sale as presented in the condensed consolidated balance sheet for the period ended May 31, 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 adjustments |
(2,604,000) |
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| Adjusted Note Receivable |
6,896,000 |
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| Reserve for estimated potential claims |
(2,892,000) |
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Reserve for potential collectability concerns |
$ |
(4,004,000) |
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| Long-term note receivable, estimated net realizable value |
$ |
— |
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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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May 31,
2022 |
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August 31,
2021 |
| Cash |
$ |
— |
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|
$ |
— |
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| Accounts receivable and unbilled account receivable |
— |
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|
— |
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| Prepaid expenses and other current assets |
— |
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|
— |
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| Deposits – workers’ compensation |
— |
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|
356,000 |
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| Total current assets |
— |
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|
356,000 |
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| Fixed assets, net |
— |
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|
— |
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| Deposits – workers’ compensation |
— |
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|
883,000 |
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| Total assets |
$ |
— |
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|
$ |
1,239,000 |
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| Accounts payable and other current liabilities |
$ |
— |
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|
$ |
— |
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| Payroll related liabilities |
— |
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|
— |
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| Accrued workers’ compensation cost |
1,251,000 |
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|
1,516,000 |
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| Total current liabilities |
1,251,000 |
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|
1,516,000 |
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| Accrued workers’ compensation cost |
3,074,000 |
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|
3,765,000 |
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| Total liabilities |
4,325,000 |
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|
5,281,000 |
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| Net liability |
$ |
(4,325,000) |
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|
$ |
(4,042,000) |
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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 Three Months Ended |
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For the Nine Months Ended |
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May 31, 2022 |
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May 31, 2021 |
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May 31, 2022 |
|
May 31, 2021 |
| Revenues |
$ |
— |
|
|
$ |
— |
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|
$ |
— |
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|
$ |
— |
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| Cost of revenue |
132,000 |
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|
(23,000) |
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|
283,000 |
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|
1,512,000 |
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| Gross profit (loss) |
(132,000) |
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|
23,000 |
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(283,000) |
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(1,512,000) |
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| Operating expenses: |
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| Salaries, wages and payroll taxes |
— |
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— |
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— |
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— |
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| Commissions |
— |
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— |
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— |
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— |
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| Total operating expenses |
— |
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— |
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— |
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— |
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| (Loss) income from discontinued operations |
$ |
(132,000) |
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$ |
23,000 |
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$ |
(283,000) |
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$ |
(1,512,000) |
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