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Note 4 - Discontinued Operations

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 4.

Discontinued Operations

As of June 30, 2020, our former Factoring reportable segment was classified as discontinued operations as it: (i) was a component of the entity, (ii) met the criteria as held for sale, and (iii) had a material effect on the Company's operations and financial results. On July 8, 2020, we closed on the disposition of substantially all of the operations and assets of TFS, which included substantially all of the assets and operations of our Factoring reportable segment. The sale consisted primarily of $103.3 million of net accounts receivable, which included $108.7 million of gross accounts receivable, less advances and rebates of $5.4 million.

We have reflected the former Factoring reportable segment as discontinued operations in the condensed consolidated statements of operations for all periods presented.

The following table summarizes the results of our discontinued operations for the three and nine months ended September 30, 2022 and 2021:

(in thousands)		Three Months Ended September 30,								Nine Months Ended September 30,
		2022				2021				2022				2021
Total revenue		$	-			$	-			$	-			$	-
Operating expenses			-				-				-				25
Operating loss			-				-				-				(25	)
Reversal of contingent loss liability			(700	)			-				(700	)			(3,412	)
Interest expense			-				-				-				-
Income (loss) before income taxes			700				-				700				3,387
Income tax expense (benefit)			175				-				175				847
Income (loss) from discontinued operations, net of tax		$	525			$	-			$	525			$	2,540

Reversal of contingent liability for the three and nine months ended September 30, 2022 and for the nine months ended September 2021 relates to the reduced exposure of future indemnification by the Company to Triumph, as a result of the collection of covered receivables identified in the amended purchase agreement, as described in Note 1.

The following table summarizes the major classes of assets and liabilities included as discontinued operations as of September 30, 2022 and December 31, 2021:

(in thousands)		September 30, 2022				December 31, 2021
Noncurrent deferred tax asset		$	1,100			$	1,275
Noncurrent assets from discontinued operations			1,100				1,275
Total assets from discontinued operations		$	1,100			$	1,275

Liabilities:
Long-term contingent loss liability		$	4,400			$	5,100
Long-term liabilities of discontinued operations			4,400				5,100
Total liabilities from discontinued operations		$	4,400			$	5,100

There were no net cash flows related to discontinued operations for the three and nine months ended September 30, 2022 and 2021.

Refer to Note 1, “Significant Accounting Policies” of the accompanying condensed consolidated financial statements for further information about the amended TFS purchase agreement.