• Filing Date: 2020-11-09
  • Form Type: 10-Q
  • Description: Quarterly report
v3.20.2
DISCONTINUED OPERATIONS (Tables)
9 Months Ended
Sep. 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 received (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     122  
 Consideration received (see below)     4,000  
 Gain on sale of TeamGlobal   $ 1,012  
         
 Cash consideration   $ 2,300  
 Note receivable     1,700  
 Total TeamGlobal Purchase Agreement consideration   $ 4,000  
Discontinued operations

The assets and liabilities classified as discontinued operations in the Company's unaudited condensed consolidated financial statements as of September 30, 2020 and December 31, 2019 are shown below (dollars in thousands): 

 

    September 30. 2020     December 31, 2020  
    Global     AOC Key Solutions     Firestorm     Total     Global     AOC Key Solutions     Firestorm     Total  
ASSETS                                                
Cash and cash equivalents   $ -     $ -     $ 3     $ 3     $ 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     -       -       3       3       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   $ -     $ -     $ 3     $ 3     $ 6,132     $ 4,751     $ 15     $ 10,898  
LIABILITIES                                                                
Accounts payable and accrued expenses   $ -     $ -     $ 31     $ 31     $ 461     $ 1,260     $ 33     $ 1,754  
Lines of credit     -       -       -       -       1,842       1,894       -       3,736  
Lease liability, short term     -       -       83       83       113       100       54       267  
Current liabilities of discontinued operations     -       -       114       114       2,416       3,254       87       5,757  
Lease liability, long term     -       -       14       14       30       467       39       536  
Long-term liabilities of discontinued operations     -       -       14       14       30       467       39       536  
Total liabilities of discontinued operations   $ -     $ -     $ 128     $ 128     $ 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 September 30,  
    2020     2019  
    Global     AOC Key Solutions     Firestorm     Total     Global     AOC Key Solutions     Firestorm     Total  
Revenue   $ -     $ -     $ -     $ -     $ 6,205     $ 3,397     $ 50     $ 9,652  
Cost of revenue     -       -       -       -       5,378       1,836       6       7,220  
Gross profit     -       -       -       -       827       1,561       44       2,432  
Operating expenses:                                                                
General and administrative expenses     -       -       2       2       850       1,073       25       1,948  
Selling and marketing expenses     -       -       -       -       (1 )     138       -       137  
Operating expenses     -       -       2       2       849       1,211       25       2,085  
Income loss income from operations     -       -       (2 )     (2 )     (22 )     350       19       347  
Other expense:                                                                
Loss on extinguishment of debt     -       -       -       -       (31 )     (46 )     -       (77 )
Interest expense     -       -       -       -       (107 )     (47 )     -       (154 )
Other expense     -       -       -       -       -       (154 )     (62 )     (216 )
Total other expense     -       -       -       -       (138 )     (247 )     (62 )     (447 )
Income (loss) from discontinued operations     -       -       (2 )     (2 )     (160 )     103       (43 )     (100 )
Income tax provision from discontinued operations     -       -       -       -       -       -       -       -  
Net income (loss) from discontinued operations   $ -     $ -     $ (2 )   $ (2 )   $ (160 )   $ 103     $ (43 )   $ (100 )

 

    Nine Months ended September 30,  
    2020     2019  
    Global     AOC Key Solutions     Firestorm     Total     Global     AOC Key Solutions     Firestorm     Total  
Revenue   $ 10,510     $ 3,392     $ 5     $ 13,907     $ 20,260     $ 9,916     $ 1,005     $ 31,181  
Cost of revenue     9,190       1,866       -       11,056       17,551       5,367       501       23,419  
Gross profit     1,320       1,526       5       2,851       2,709       4,549       504       7,762  
Operating expenses:                                                                
General and administrative expenses     1,341       1,284       (2 )     2,623       2,745       3,634       1,017       7,396  
Selling and marketing expenses     79       131       -       210       142       412       48       602  
Impairment of intangibles     -       -       -       -       -       -       1,549       1,549  
Operating expenses     1,420       1,415       (2 )     2,833       2,887       4,046       2,614       9,547  
Income loss income from operations     (100 )     111       7       18       (178 )     503       (2,110 )     (1,785 )
Other income (expense):                                                                
Loss on extinguishment of debt     -       -       -       -       (31 )     (46 )     -       (77 )
Interest expense     (166 )     (74 )     -       (240 )     (208 )     (108 )     -       (316 )
Other income (expense)     5       2       -       7       2       (151 )     (65 )     (214 )
Total other expense     (161 )     (72 )     -       (233 )     (237 )     (305 )     (65 )     (607 )
Income (loss) from discontinued operations     (261 )     39       7       (215 )     (415 )     198       (2,175 )     (2,392 )
Income tax provision from discontinued operations     -       -       -       -       -       -       -       -  
Net income (loss) from discontinued operations   $ (261 )   $ 39     $ 7     $ (215 )   $ (415 )   $ 198     $ (2,175 )   $ (2,392 )