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Note 2 - Discontinued Operations

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

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

2.	DISCONTINUED OPERATIONS

As of June 30, 2020, our previously identified 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 consolidated statements of operations for all periods presented. Prior periods have been adjusted to confirm to the current presentation.

The following table summarizes the results of our discontinued operations for the twelve months ended December 31, 2022 and 2021:

(in thousands)		Twelve months ended December 31,
		2022				2021
Operating expenses		$	-			$	25
(Reversal of) loss contingency			(1,000	)			(3,412	)
Operating income			1,000				3,387
Income before income taxes			1,000				3,387
Income tax expense			250				847
Net income from discontinued operations, net of tax		$	750			$	2,540

Operating income for the year ended December 31, 2022 and 2021, relates to the gain on the reversal of our contingent loss liability in the amount of $1.0 million and $3.4 million, respectively. Reversal of contingent loss liability 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 December 31, 2022 and 2021:

(in thousands)		December 31, 2022				December 31, 2021
Noncurrent deferred tax asset			1,025				1,275
Noncurrent assets from discontinued operations			1,025				1,275
Total assets from discontinued operations		$	1,025			$	1,275

Current liabilities:
Accounts payable		$	-			$	-
Current liabilities of discontinued operations			-				-
Contingent liabilities			4,100				5,100
Total liabilities from discontinued operations		$	4,100			$	5,100

There were no net cash flows related to discontinued operations for the years ended December 31, 2022 or 2021.

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