XML 30 R20.htm IDEA: XBRL DOCUMENT
v3.19.2

Discontinued Operations of TS Segment | 9 Months Ended
--- | ---
Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations of TS Segment | 12. Discontinued Operations of TS Segment On July 31, 2018, CSPi LTD, a wholly owned indirect subsidiary of the Company, completed its sale of all of the outstanding stock of Modcomp GmbH, to Reply AG, an affiliate of Reply SpA, a holding company for a worldwide group of companies, pursuant to the terms of a Share Purchase and Assignment Agreement (the “Share Purchase Agreement”) dated June 27, 2018. Modcomp GmbH, dba CSPI GmbH, through itself and its wholly owned subsidiaries, provided managed security services to customers primarily in Germany. Upon the closing of the Share Purchase Agreement, Reply AG paid to CSPI total cash at closing of approximately $14.4 million, which consisted of the original purchase price of $11.7 million plus an adjustment at closing for Net Cash (as defined in the Share Purchase Agreement) of approximately $2.7 million. An additional €400 thousand is included in escrow and will be recorded if and when received by the Company. Accordingly, CSPi determined that the assets and liabilities of this reportable segment met the discontinued operations criteria in U.S. GAAP in the year ended September 30, 2018. The gain recorded due to the sale of all the stock of Modcomp GmbH was approximately $16.8 million. No income taxes were provided as the transaction was a tax-free exchange in the U.K. As such, Modcomp GmbH’s results have been recorded as discontinued operations in the accompanying consolidated balance sheets and consolidated statements of operations for all periods presented. Summarized Discontinued Operations Financial Information The following table summarizes the results of discontinued operations for the three and nine months ended June 30, 2019 and 2018:
|  | For the three months ended |  | For the nine months ended |
|  | June 30, |  | June 30, |  | June 30, |  | June 30, |
|  | 2019 |  | 2018 |  | 2019 |  | 2018 |
|  | (Amounts in thousands) |
Sales |  | $ | — |  | $ | 5,681 |  | $ | — |  | $ | 16,428 |
Cost of sales |  |  | — |  |  | 5,150 |  |  | — |  |  | 14,180 |
Gross profit |  |  | — |  |  | 531 |  |  | — |  |  | 2,248 |
Selling, general and administrative expenses |  |  | — |  |  | 922 |  |  | — |  |  | 2,656 |
Operating loss |  |  | — |  |  | (391) |  |  | — |  |  | (408) |
Other income (expenses) |  |  | — |  |  | (36) |  |  | — |  |  | (95) |
Loss before income taxes |  |  | — |  |  | (427) |  |  | — |  |  | (503) |
Income tax expense |  |  | — |  |  | 1 |  |  | — |  |  | — |
Loss from discontinued operations, net of tax |  | $ | — |  | $ | (428) |  | $ | — |  | $ | (503) |

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration