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Note 2 - Discontinued Operations

12 Months Ended

Dec. 31, 2024

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 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 consolidated statements of operations for all periods presented.

The following table summarizes the results of our discontinued operations for the twelve months ended December 31, 2024, 2023, and 2022:

(in thousands)		Twelve months ended December 31,
		2024				2023				2022
Operating expenses		$	-			$	-			$	-
(Reversal of) loss contingency			(800	)			(800	)			(1,000	)
Operating income			800				800				1,000
Income before income taxes			800				800				1,000
Income tax expense			200				200				250
Net income from discontinued operations, net of tax		$	600			$	600			$	750

Operating income for the years ended December 31, 2024, 2023, and 2022, relates to the gain on the reversal of our contingent loss liability in the amount of $0.8 million, $0.8 million, and $1.0 million, respectively. Reversal of contingent loss liability relates to the reduced exposure of future indemnification by the Company to 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 December 31, 2024 and 2023:

(in thousands)		December 31, 2024				December 31, 2023
Noncurrent deferred tax asset		$	209			$	409
Noncurrent assets from discontinued operations			209				409
Total assets from discontinued operations		$	209			$	409

Current liabilities:
Noncurrent contingent liabilities		$	835			$	1,635
Total liabilities from discontinued operations		$	835			$	1,635

There was $1.7 million of operating cash outflows related to the $1.7 million payment on the indemnification obligation to Triumph for the year ended December 31, 2023 and no net cash flows related to discontinued operations for the years ended December 31, 2024 or 2022.