• Filing Date: 2020-08-03
  • Form Type: 10-Q
  • Description: Quarterly report
v3.20.2
DISCONTINUED OPERATIONS (Tables)
6 Months Ended
Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
AOC Key Solutions Purchase Agreement
Total assets sold   $ 4,549  
Total liabilities assumed     3,514  
 Net assets sold     1,035  
 Closing cost     346  
 Consideration paid (see below)     4,000  
 Gain on sale of AOC Key Solutions   $ 2,619  
         
 Cash consideration   $ 3,400  
 Note receivable     600  
 Total AOC Key Solution Purchase Agreement consideration   $ 4,000  
Team Global Purchase Agreement
Total assets sold   $ 9,996  
Total liabilities assumed     7,130  
 Net assets sold     2,866  
 Closing cost     117  
 Consideration paid (see below)     4,000  
 Gain on sale of TeamGlobal   $ 1,017  
         
 Cash consideration   $ 2,300  
 Note receivable     1,700  
 Total TeamGlobal Purchase Agreement consideration   $ 4,000  
Discontinued operations
     June 30, 2020     December 31, 2019   
    Global     AOC Key Solutions     Firestorm     Total     Global     AOC Key Solutions     Firestorm     Total  
ASSETS                                                
Cash and cash equivalents   $ -     $ -     $ 4     $ 4     $ 225     $ 93     $ 12     $ 330  
Accounts receivable, net     -       -       -       -       2,763       4,055       -       6,818  
Other current assets, net     -       -       -       -       238       52       3       293  
Current assets of discontinued operations     -       -       4       4       3,226       4,200       15       7,441  
Property and equipment, net     -       -       -       -       113       41       -       154  
Right-of-use lease assets, net     -       -       -       -       130       499       -       629  
Goodwill     -       -       -       -       669       -       -       669  
Intangible assets, net     -       -       -       -       1,994       -       -       1,994  
Deposits and other long-term assets     -       -       -       -       -       11       -       11  
Long-term assets of discontinued operations     -       -       -       -       2,906       551       -       3,457  
Total assets of discontinued operations   $ -     $ -     $ 4     $ 4     $ 6,132     $ 4,751     $ 15     $ 10,898  
LIABILITIES                                                                
Accounts payable and accrued expenses   $ -     $ -     $ 30     $ 30     $ 461     $ 1,260     $ 33     $ 1,754  
Lines of credit     -       -       -       -       1,842       1,894       -       3,736  
Lease liability, short term     -       -       74       74       113       100       54       267  
Current liabilities of discontinued operations     -       -       104       104       2,416       3,254       87       5,757  
Lease liability, long term     -       -       21       21       30       467       39       536  
Long-term liabilities of discontinued operations     -       -       21       21       30       467       39       536  
Total liabilities of discontinued operations   $ -     $ -     $ 125     $ 125     $ 2,446     $ 3,721     $ 126     $ 6,293  

  

The major components of the discontinued operations, net of tax, are presented in the unaudited condensed consolidated statements of operations below (dollars in thousands):

 

    Three Months ended June 30,  
    2020     2019  
    Global     AOC Key Solutions     Firestorm     Total     Global     AOC Key Solutions     Firestorm     Total  
Revenue   $ 4,205     $ -     $ 5     $ 4,210     $ 6,997     $ 3,641     $ 275     $ 10,913  
Cost of revenue     3,714       -       -       3,714       6,027       1,939       200       8,166  
Gross profit     491       -       5       496       970       1,702       75       2,747  
Operating expenses:                                                                
General and administrative expenses     579       -       -       579       924       1,446       412       2,782  
Selling and marketing expenses     40       -       -       40       61       149       57       267  
Impairment of intangibles     -       -       -        -       -       -       1,549       1,549  
Operating expenses     619       -       -       619       985       1,595       2,018       4,598  
Income loss income from operations     (128 )     -       5       (123 )     (15 )     107       (1,943 )     (1,851 )
Other (income) expense:                                                                
Interest expense     (76 )     -       -       (76 )     (53 )     (30 )     -       (83 )
Other expense (income)     -       -       -       -       1       -       (3 )     (2 )
Total other (income) expense     (76 )     -       -       (76 )     (52 )     (30 )     (3 )     (85 )
Income (loss) from discontinued operations     (204 )     -       5       (199 )     (67 )     77       (1,946 )     (1,936 )
Income tax provision from discontinued operations     -       -       -       -       -       -       -       -  
Net income (loss) from discontinued operations   $ (204 )   $ -     $ 5     $ (199 )   $ (67 )   $ 77     $ (1,946 )   $ (1,936 )

 

    Six Months ended June 30,  
    2020     2019  
    Global     AOC Key Solutions     Firestorm     Total     Global     AOC Key Solutions     Firestorm     Total  
Revenue   $ 10,510     $ 3,392     $ 5     $ 13,907     $ 14,055     $ 6,519     $ 955     $ 21,529  
Cost of revenue     9,190       1,866       -       11,056       12,173       3,531       495       16,199  
Gross profit     1,320       1,526       5       2,851       1,882       2,988       460       5,330  
Operating expenses:                                                                
General and administrative expenses     1,341       1,284       (4 )     2,621       1,895       2,561       920       5,376  
Selling and marketing expenses     79       131       -       210       143       274       120       537  
Impairment of intangibles     -       -       -       -       -       -       1,549       1,549  
Operating expenses     1,420       1,415       (4 )     2,831       2,038       2,835       2,589       7,462  
Income loss income from operations     (100 )     111       9       20       (156 )     153       (2,129 )     (2,132 )
Other (income) expense:                                                                
Interest expense     (166 )     (74 )     -       (240 )     (101 )     (61 )     -       (162 )
Other expense (income)     5       2       -       7       2       2       (3 )     1  
Total other (income) expense     (161 )     (72 )     -       (233 )     (99 )     (59 )     (3 )     (161 )
Income (loss) from discontinued operations     (261 )     39       9       (213 )     (255 )     94       (2,132 )     (2,293 )
Income tax provision from discontinued operations     -       -       -       -       -       -       -       -  
Net income (loss) from discontinued operations   $ (261 )   $ 39     $ 9     $ (213 )   $ (255 )   $ 94     $ (2,132 )   $ (2,293 )