• Filing Date: 2019-11-15
  • Form Type: 10-Q/A
  • Description: Quarterly report (Amendment)
v3.19.3
HELD FOR SALE OPERATIONS
9 Months Ended
Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]  
HELD FOR SALE OPERATIONS

In September 2019, the Company determined that the Global business met the criteria for held for sale accounting because it expects to complete the sale of Global during the next 12 months. Historically, Global has been presented as part of the Professional Services Segment.

 

This pending disposition is a result of the Company’s strategic decision to concentrate resources on the development of its Technology Segment and will result in material changes in the Company's operations and financial results. As a consequence, the Company is reporting the operating results and cash flows of Global as held for sale, including for all prior periods reflected in the unaudited condensed consolidated financial statements and these notes.

 

Pursuant to ASC Topic 205-20, Presentation of Financial Statements - Discontinued Operations, the results of operations from Global for the three and nine months ended September, 2019 and 2018 has been classified as held for sale and presented as part of income (loss) from operations held for sale in the accompanying unaudited consolidated statements of operations presented herein. The assets and liabilities also have been classified as held for sale under the line captions of current assets held for sale and current liabilities held for sale in the Company's condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018.

 

The assets and liabilities classified as held for sale operations in the Company's condensed consolidated financial statements as of September 30, 2019 and December 31, 2018 are shown below (dollars in thousands). 

 

   

September 30,

2019

   

December 31,

2018

 
ASSETS            
Cash and cash equivalents   $ 226     $ 90  
Accounts receivable, net     2,981       2,289  
Other current assets, net     322       257  
  Total current assets     3,529       2,636  
Property and equipment, net     138       176  
Right-of-use lease assets, net     154       -  
Goodwill     1,691       1,691  
Intangible assets, net     1,994       2,208  
Deposits and other long-term assets     9       79  
Total assets held for sale   $ 7,515     $ 6,790  
LIABILITIES                
Accounts payable and accrued expenses   $ 942     $ 800  
Short-term borrowings     1,623       1,095  
Lease liability, short term     110       -  
Other liabilities, current portion     5       -  
Total current liabilities held for sale     2,680       1,895  
Other long-term liabilities     120       90  
Lease liability, long term     59       -  
Total liabilities held for sale   $ 2,859     $ 1,985  

    

The major components of the operations held for sale, net of tax, are presented in the condensed consolidated statements of operations below (dollars in thousands).

 

    For the Three Months ended September 30,     For the Nine Months ended September 30,  
    2019     2018     2019     2018  
             
Revenue   $ 6,205     $ 7,242     $ 20,260     $ 21,435  
Cost of revenue     5,378       6,263       17,551       18,694  
Gross profit     827       979       2,709       2,741  
Operating expenses:                                
General and administrative expenses     755       809       2,744       2,352  
Selling and marketing expenses     93       93       142       241  
Operating expenses     848       902       2,886       2,593  
Income (loss) from operations     (21 )     77       (177 )     148  
Other income (expense):                                
Loss on extinguishment of debt     (31 )     -       (31 )     -  
Interest expense     (108 )     (30 )     (209 )     (96 )
Other income     -     -       2     -  
Total other expense     (139 )     (30 )     (238 )     (96 )
Income (loss) from operations held for sale   (160 )   47     (415 )   52  
Income tax provision from operations held for sale       (12      (22      (35      (22
Net income (loss) from operations held for sale     (172    25      (450    30