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v3.23.1

Note 4 - Fresh-start Reporting (Tables) | 12 Months Ended
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Jan. 31, 2023
Notes Tables |
Schedule of Reconciliation of Enterprise Value Under Reorganization Adjustment [Table Text Block] |
Enterprise value (1) |  | $ | 1,150,000 |
Plus (minus): |  |  |  |
Cash |  |  | 92,009 |
Borrowings under accounts receivable facility |  |  | (48,886 | )
Fair value of debt |  |  | (514,950 | )
Fair value of warrants |  |  | (11,200 | )
Implied value of Successor Company common stock |  | $ | 666,973 |
Shares issued upon emergence (Class A and B common stock) |  |  | 4,000 |
Per share |  | $ | 167 |
Enterprise value (1) |  | $ | 1,150,000 |
Plus: |  |  |  |
Cash |  |  | 92,009 |
Current liabilities (excluding AR facility and Current maturity of long-term debt) |  |  | 134,257 |
Deferred tax liabilities |  |  | 103,930 |
Other long-term liabilities |  |  | 7,140 |
Non-current lease obligations |  |  | 16,399 |
Reorganization value |  | $ | 1,503,735 |
Reorganization, Chapter 11 [Table Text Block] |
|  | Predecessor |  |  | Reorganization |  |  |  | Fresh Start |  |  |  | Predecessor |
|  | (PL) |  |  | Adjustments |  |  |  | Adjustment |  |  |  | (SLH) |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 42,341 |  |  | $ | 49,668 |  | (1) |  | $ | — |  |  |  | $ | 92,009 |
Restricted cash |  |  | 35,306 |  |  |  | (25,000 | ) | (1) |  |  | — |  |  |  |  | 10,306 |
Accounts receivable |  |  | 73,607 |  |  |  | 1,700 |  | (2) |  |  | (990 | ) | (10) |  |  | 74,317 |
Prepaid expenses and other current assets |  |  | 39,317 |  |  |  | (300 | ) | (2) |  |  | (10,573 | ) | (11) |  |  | 28,444 |
Total current assets |  |  | 190,571 |  |  |  | 26,068 |  |  |  |  | (11,563 | ) |  |  |  | 205,076 |
Property and equipment, net |  |  | 15,523 |  |  |  | 500 |  | (2) |  |  | — |  |  |  |  | 16,023 |
Goodwill |  |  | 1,070,674 |  |  |  | 5,100 |  | (2) |  |  | (580,639 | ) | (12) |  |  | 495,135 |
Intangible assets, net |  |  | 249,962 |  |  |  | — |  |  |  |  | 516,124 |  | (13) |  |  | 766,086 |
Right of use assets |  |  | 17,454 |  |  |  | — |  |  |  |  | 367 |  | (14) |  |  | 17,821 |
Other assets |  |  | 17,313 |  |  |  | (3,500 | ) | (2) |  |  | (10,219 | ) | (11) |  |  | 3,594 |
Total assets |  | $ | 1,561,497 |  |  | $ | 28,168 |  |  |  | $ | (85,930 | ) |  |  | $ | 1,503,735 |
LIABILITIES AND SHAREHOLDER'S EQUITY (DEFICIT) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current maturities of long-term debt |  | $ | 60,000 |  |  | $ | (57,400 | ) | (3) |  | $ | — |  |  |  | $ | 2,600 |
Borrowings under accounts receivable facility |  |  | 48,886 |  |  |  | — |  |  |  |  | — |  |  |  |  | 48,886 |
Accounts payable |  |  | 7,851 |  |  |  | 300 |  | (2) |  |  | — |  |  |  |  | 8,151 |
Accrued compensation |  |  | 23,587 |  |  |  | 1,400 |  | (2) |  |  | — |  |  |  |  | 24,987 |
Accrued expenses and other liabilities |  |  | 12,105 |  |  |  | 500 |  | (2) |  |  | — |  |  |  |  | 12,605 |
Lease liabilities |  |  | 1,699 |  |  |  | 3,245 |  | (6) |  |  | (175 | ) | (14) |  |  | 4,769 |
Deferred revenue |  |  | 196,469 |  |  |  | 2,400 |  | (2) |  |  | (115,124 | ) | (15) |  |  | 83,745 |
Total current liabilities |  |  | 350,597 |  |  |  | (49,555 | ) |  |  |  | (115,299 | ) |  |  |  | 185,743 |
Long-term debt |  |  | — |  |  |  | 517,400 |  | (3)(4) |  |  | (5,050 | ) | (17) |  |  | 512,350 |
Long term lease liabilities |  |  | 3,732 |  |  |  | 12,442 |  | (6) |  |  | 225 |  | (14) |  |  | 16,399 |
Warrants |  |  | — |  |  |  | 11,200 |  | (6)(8) |  |  | — |  |  |  |  | 11,200 |
Deferred tax liabilities |  |  | — |  |  |  | 30,484 |  | (6)(6) |  |  | 73,446 |  | (16) |  |  | 103,930 |
Deferred revenue - non-current |  |  | 1,783 |  |  |  | — |  |  |  |  | (1,128 | ) | (15) |  |  | 655 |
Other long-term liabilities |  |  | 2,289 |  |  |  | 3,796 |  | (6) |  |  | 400 |  | (17) |  |  | 6,485 |
Total long-term liabilities |  |  | 7,804 |  |  |  | 575,322 |  |  |  |  | 67,893 |  |  |  |  | 651,019 |
Liabilities subject to compromise |  |  | 4,472,954 |  |  |  | (4,472,954 | ) | (6) |  |  | — |  |  |  |  | — |
Total liabilities |  |  | 4,831,355 |  |  |  | (3,947,187 | ) |  |  |  | (47,406 | ) |  |  |  | 836,762 |
Shareholders’ equity (deficit): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ordinary shares (Predecessor) |  |  | 138 |  |  |  | (138 | ) | (7) |  |  | — |  |  |  |  | — |
Additional paid-in capital (Predecessor) |  |  | 83 |  |  |  | (83 | ) | (7) |  |  | — |  |  |  |  | — |
Ordinary shares (Successor) |  |  | — |  |  |  | 40 |  | (6)(8) |  |  | — |  |  |  |  | 40 |
Additional paid-in capital (Successor) |  |  | — |  |  |  | 666,933 |  | (6)(8) |  |  | — |  |  |  |  | 666,933 |
Retained earnings (accumulated deficit) |  |  | (3,267,346 | ) |  |  | 3,308,603 |  | (9) |  |  | (41,257 | ) | (17) |  |  | — |
Accumulated other comprehensive loss |  |  | (2,733 | ) |  |  | — |  |  |  |  | 2,733 |  | (18) |  |  | — |
Total shareholders’ equity (deficit) |  |  | (3,269,858 | ) |  |  | 3,975,355 |  |  |  |  | (38,524 | ) |  |  |  | 666,973 |
Total liabilities and shareholders’ equity (deficit) |  | $ | 1,561,497 |  |  | $ | 28,168 |  |  |  | $ | (85,930 | ) |  |  | $ | 1,503,735 |
Schedule of Usage of Cash Under Reorganization Adjustment [Table Text Block] |
Sources: |  |  |  |
Release of restricted cash (a) |  | $ | 25,000 |
Additional funding from First Out Term Loan |  |  | 50,000 |
Reconsolidation of Canadian subsidiary |  |  | 1,100 |
Total sources of cash |  |  | 76,100 |
Uses: |  |  |  |
Exit Facility and DIP Facility rollover financing costs paid upon Effective Date |  |  | (5,032 | )
Professional success fees paid upon Effective Date |  |  | (21,400 | )
Total uses of cash |  |  | (26,432 | )
Net increase in cash |  | $ | 49,668 |
Schedule of Debt Under Reorganization Adjustment [Table Text Block] |
Term Loan Facility: |  |  |  |
Senior Secured First Out Term Loan |  | $ | 110,000 |
Senior Secured Second Out Term Loan |  |  | 410,000 |
Total Debt - Exit facility (a) |  |  | 520,000 |
Current portion of long-term debt |  |  | (2,600 | )
Long-term debt, net of current portion |  | $ | 517,400 |
Schedule of Disposition of Liability Under Reorganization Adjustment [Table Text Block] |
Liabilities subject to compromise pre-emergence |  | $ | 4,472,954 |
Reinstated on the Effective Date: |  |  |  |
Lease liabilities (current and non-current) |  |  | (15,687 | )
Deferred tax liabilities |  |  | (26,107 | )
Other long-term liabilities |  |  | (3,796 | )
Total liabilities reinstated |  |  | (45,590 | )
Less amounts settled per the Plan of Reorganization |  |  |  |
Issuance of new debt |  |  | (410,000 | )
Issuance of warrants |  |  | (11,200 | )
Equity issued at emergence to creditors in settlement of liabilities subject to compromise |  |  | (666,973 | )
Total amounts settled |  |  | (1,088,173 | )
Gain on settlement of liabilities subject to compromise |  | $ | 3,339,191 |
Schedule of Cumulative Impact of Under Reorganization Adjustment [Table Text Block] |
Gain on settlement of liabilities subject to compromise |  | $ | 3,339,191 |
Provision for income taxes |  |  | (4,377 | )
Professional success fees paid upon Effective Date |  |  | (21,400 | )
Exit Facility and DIP Facility rollover financing costs paid upon Effective Date |  |  | (5,032 | )
Cancellation of predecessor shares and additional paid in capital |  |  | 221 |
Net impact on accumulated deficit |  | $ | 3,308,603 |
Schedule of Goodwill Under Fresh Start Adjustment [Table Text Block] |
(in thousands) |  |  |  |
Reorganization value of Successor company |  | $ | 1,503,735 |
Less: Fair value of Successor company assets |  |  | (1,008,600 | )
Reorganization value of Successor company in excess of asset fair value - Goodwill |  | $ | 495,135 |
Schedule of Adjustment to Intangible Assets Under Fresh Start Adjustment [Table Text Block] |
|  | Estimated |  |  | Estimated |
|  | fair value |  |  | useful life (years) |
Developed software/ courseware |  | $ | 261,600 |  |  |  | 3 - 5 |
Customer contracts/ relationships |  |  | 279,500 |  |  |  | 12.4 |
Trademarks and trade names |  |  | 6,300 |  |  |  | 9.4 |
Backlog |  |  | 90,200 |  |  |  | 4.4 |
Skillsoft trademark |  |  | 91,500 |  |  | Indefinite |
Publishing rights |  |  | 35,200 |  |  |  | 5 |
Capitalized software |  |  | 1,786 |  |  |  | 5 |
Total intangible asset upon emergence |  |  | 766,086 |  |  |  |  |
Elimination of historical acquired intangible assets |  |  | (249,962 | ) |  |  |  |
Fresh-start adjustment to acquired intangibles assets |  | $ | 516,124 |  |  |  |  |
Schedule of Cumulative Impact of Under Fresh Start Adjustment [Table Text Block] |
Fresh-start adjustment to accounts receivable, net |  | $ | (990 | )
Fresh-start adjustment to prepaid assets and other assets (including long-term) |  |  | (20,792 | )
Fresh-start adjustment to goodwill |  |  | (580,639 | )
Fresh-start adjustment to intangible assets, net |  |  | 516,124 |
Fresh-start adjustment to operating lease right-of-use assets and liabilities, net |  |  | 317 |
Fresh-start adjustment to deferred revenue (current and non-current) |  |  | 116,252 |
Fair value adjustment to debt |  |  | 5,050 |
Fair value adjustment to other long-term liabilities |  |  | (400 | )
Total fresh-start adjustments impacting reorganization items, net |  |  | 34,922 |
Elimination of accumulated other comprehensive loss |  |  | (2,733 | )
Tax impact of fresh-start adjustments |  |  | (73,446 | )
Net impact on accumulated deficit |  | $ | (41,257 | )
Schedule of Adjustment of Reorganization Recognized In Statement of Operation [Table Text Block] |
|  | Predecessor (PL) |
|  | February 1, 2020 |
|  | through |
|  | August 27, 2020 |
Gain on settlement of liabilities subject to compromise |  | $ | 3,339,191 |
Impact of fresh-start adjustments |  |  | 66,928 |
Exit Facility and DIP Facility rollover financing costs paid upon Effective Date |  |  | (5,032 | )
Write-off of pre-petition debt and DIP issuance costs |  |  | (9,461 | )
Professional success fees paid upon Effective Date |  |  | (21,399 | )
Professional fees and other bankruptcy related costs |  |  | (13,076 | )
Gain on Deconsolidation of Canadian subsidiary |  |  | 4,100 |
Reorganization items, net |  | $ | 3,361,251 |
|  | Predecessor (SLH) |  |  | Predecessor (PL) |
|  | August 28, 2020 |  |  | February 1, 2020 |
|  | through |  |  | through |
|  | January 31, 2021 |  |  | August 27, 2020 |
Cash payment for reorganization items, net |  | $ | 784 |  |  | $ | 42,916 |

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