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Note 4 - Discontinued Operations

9 Months Ended

Sep. 30, 2024

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 Transport Financial Services ("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, 2024 and 2023:

(in thousands)		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Reversal of contingent loss liability		$	(200	)		$	(200	)		$	(600	)		$	(600	)
Income before income taxes			200				200				600				600
Income tax expense			50				50				150				150
Income from discontinued operations, net of tax		$	150			$	150			$	450			$	450

Reversal of contingent loss liability for the three and nine months ended September 30, 2024 and 2023 relates to the reduced exposure of future indemnification by the Company to the purchaser of TFS, Triumph Bancorp, Inc. ("Triumph"), as a result of the collection of covered receivables identified in the amended purchase agreement.

The following table summarizes the major classes of assets and liabilities included as discontinued operations as of September 30, 2024 and December 31, 2023:

(in thousands)		September 30, 2024				December 31, 2023
Noncurrent deferred tax asset		$	259			$	409
Noncurrent assets from discontinued operations			259				409
Total assets from discontinued operations		$	259			$	409

Liabilities:
Long-term contingent loss liability		$	1,035			$	1,635
Long-term liabilities of discontinued operations			1,035				1,635
Total liabilities from discontinued operations		$	1,035			$	1,635

There were no operating cash outflows for the three and nine months ended September 30, 2024 and 2023.