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Note 17 - Discontinued Operations

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

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

Note 17 – Discontinued Operations

In connection with the Dubin acquisition, certain assets acquired are still owned by us and classified as held-for-sale. When we acquired Dubin, there were two business lines. Dubin Workforce Solutions specialized in temporary labor assignments. The Dubin Group focused on permanent recruiting. We immediately sold the assets of Dubin Workforce Solutions to a new franchisee. There was not a franchisee identified for the Dubin Group portion of the business, however, we began marketing the franchise and classified it as held-for-sale immediately upon acquisition. We entered into an employment agreement with the seller to continue managing the business as a Company-owned location while it was held-for-sale. During 2025, we actively solicited but did not receive any reasonable offers to purchase the assets and, in response, have adjusted the price. The franchise continues to be actively marketed at a price that is reasonable given its results of operation. We expect to complete a sale of these assets within the next 12 months.

Intangible assets associated with discontinued operations consist of customer lists with a net carrying value of approximately $672 thousand and $891 thousand at December 31, 2025 and December 31, 2024, respectively. In conjunction with our annual impairment test of intangible assets in December of 2025, we recognized a loss of approximately $219 thousand related to a write down of the Dubin customer list.

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

		*Year ended*
		*December 31,*				*December 31,*
(in thousands)		*2025*				*2024*
Revenue		$	634			$	759
Cost of staffing services			300				251
Gross profit			334				508
Selling, general and administrative expense			(484	)			(772	)
Loss on sale of intangible assets			-				(11	)
Interest expense			-				(60	)
Impairment of intangible asset			(219	)			-
Net loss before income taxes			(369	)			(335	)
Benefit for income taxes			(90	)			(82	)
Net loss		$	(279	)		$	(253	)