XML 33 R20.htm IDEA: XBRL DOCUMENT

Note 14 - Discontinued Operations

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

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

Note 14 – Discontinued Operations

In connection with the Dubin acquisition, certain assets acquired related to the operations of the Philadelphia franchise are classified as held-for-sale.

The assets acquired in the Dental Power Agreement continue to be company-owned as of December 31, 2022. When we acquired Dental Power in 2021, we used the platform to build a customer base in the dental-oriented sector of the staffing industry to increase revenue opportunities under the HireQuest Health brand. Once we acquired MRI in December 2022, there were a number of natural buyers within the MRI Network. At that time we reclassified Dental Power to held-for-sale. On March 1, 2023, subsequent to these financial statements, we agreed to sell the Dental Power assets to an MRI franchisee, who will continue to operate the business as part of their franchise. Until the sale is finalized, Dental Power remains held-for-sale. For additional information related to discontinued operations, refer to Note 2 – Acquisitions.

Intangible assets associated with discontinued operations consist of customer lists with a net carrying value of approximately $3.1 million.

The income from discontinued operations amounts as reported on our consolidated statements of operations was comprised of the following amounts (in thousands):

		*Year ended*
		*December 31,*				*December 31,*
		*2022*				*2021*
Revenue		$	6,313			$	231
Cost of staffing services			4,505				171
Gross profit			1,808				60
Selling, general and administrative expense			795				36
Amortization			384				12
Net income before tax			629				12
Provision for income taxes			146				3
Net income		$	483			$	9