| Schedule of Disposal Groups Including Discontinued Operations, Reconciliation of Gross Proceeds to Net Proceeds as Presented in Cash Flow Statement |
The following reconciliation of the gross proceeds to the net proceeds from the Vensure Asset Sale is presented in the condensed consolidated balance sheets for the period ended November 30, 2022 and August 31, 2022.
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As of |
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November 30, 2022
(Unaudited) |
August 31, 2022 |
| Gross proceeds |
$ |
19,166,000 |
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$ |
19,166,000 |
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| Cash received at closing – asset sale |
(9,500,000) |
|
(9,500,000) |
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| Cash received at closing – working capital |
(166,000) |
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(166,000) |
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| Gross note receivable |
$ |
9,500,000 |
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$ |
9,500,000 |
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| Less: Transaction reconciliation – estimated working capital adjustments |
(2,604,000) |
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(2,604,000) |
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| Adjusted Note Receivable |
6,896,000 |
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6,896,000 |
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| Reserve for estimated potential claims |
(2,892,000) |
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(2,892,000) |
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Reserve for potential collectability concerns |
$ |
(4,004,000) |
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$ |
(4,004,000) |
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| Long-term note receivable, estimated net realizable value |
$ |
— |
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$ |
— |
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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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As of |
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November 30,
2022 |
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August 31,
2022 |
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(Unaudited) |
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| Deposits – workers’ compensation |
— |
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— |
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| Total current assets |
— |
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— |
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| Deposits – workers’ compensation |
— |
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— |
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| Total assets |
$ |
— |
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$ |
— |
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| Accrued workers’ compensation cost |
1,438,000 |
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1,362,000 |
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| Total current liabilities |
1,438,000 |
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1,362,000 |
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| Accrued workers’ compensation cost |
3,394,000 |
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3,269,000 |
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| Total liabilities |
4,832,000 |
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4,631,000 |
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| Net liability |
$ |
(4,832,000) |
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$ |
(4,631,000) |
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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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November 30, 2022 |
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November 30, 2021 |
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(Unaudited) |
| Revenues |
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$ |
— |
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$ |
— |
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| Cost of revenue |
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200,000 |
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134,000 |
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| Gross profit (loss) |
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(200,000) |
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(134,000) |
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| Total operating expenses |
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— |
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— |
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| (Loss) income from discontinued operations |
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$ |
(200,000) |
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$ |
(134,000) |
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