Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Tables)

v3.22.2
Discontinued Operations (Tables)
9 Months Ended
May 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
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.
Gross proceeds $ 19,166,000 
Cash received at closing – asset sale (9,500,000)
Cash received at closing – working capital (166,000)
Gross note receivable $ 9,500,000 
Less:  Transaction reconciliation – estimated working capital adjustments (2,604,000)
Adjusted Note Receivable 6,896,000 
Reserve for estimated potential claims (2,892,000)
Reserve for potential collectability concerns
$ (4,004,000)
Long-term note receivable, estimated net realizable value $ — 
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:

May 31,
2022
August 31,
2021
Cash $ —  $ — 
Accounts receivable and unbilled account receivable —  — 
Prepaid expenses and other current assets —  — 
Deposits – workers’ compensation —  356,000 
Total current assets —  356,000 
Fixed assets, net —  — 
Deposits – workers’ compensation —  883,000 
Total assets $ —  $ 1,239,000 
Accounts payable and other current liabilities $ —  $ — 
Payroll related liabilities —  — 
Accrued workers’ compensation cost 1,251,000  1,516,000 
Total current liabilities 1,251,000  1,516,000 
Accrued workers’ compensation cost 3,074,000  3,765,000 
Total liabilities 4,325,000  5,281,000 
Net liability $ (4,325,000) $ (4,042,000)
Schedule of Disposal Groups Including Discontinued Operations Income Statement
Reported results for the discontinued operations by period were as follows:
For the Three Months Ended For the Nine Months Ended
May 31, 2022 May 31, 2021 May 31, 2022 May 31, 2021
Revenues $ —  $ —  $ —  $ — 
Cost of revenue 132,000  (23,000) 283,000  1,512,000 
Gross profit (loss) (132,000) 23,000  (283,000) (1,512,000)
Operating expenses:
Salaries, wages and payroll taxes —  —  —  — 
Commissions —  —  —  — 
Total operating expenses —  —  —  — 
(Loss) income from discontinued operations $ (132,000) $ 23,000  $ (283,000) $ (1,512,000)