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Discontinued Operations
 6 Months Ended
Jun. 30, 2014
Discontinued Operations

12. Discontinued Operations

During the first quarter of 2014, the Management and Board of Directors of AETI initiated a process to evaluate the possible sale of the AAT segment as well as other alternatives. The segment is comprised entirely of the American Access Technologies, Inc. operations in Florida. During the second quarter, the decision was made to sell the AAT business. Based on the expected value of the assets and liabilities for sale and the costs associated with the sale, an impairment loss of approximately $2.3 million after tax was recorded in the second quarter in discontinued operations results along with the $84,000 operating loss of AAT and $268,000 operating loss in the first quarter for AAT. AAT results are considered discontinued operations and its assets and associated liabilities are carried as assets and liabilities held for sale. Therefore, their results are presented below continuing operating results as discontinued operations. Future periods will continue to report AAT results as discontinued in all comparative periods. In June, a non-binding letter of intent was signed to sell the non-cash operations and net assets of AAT. The sale is expected to close in the third quarter of 2014.

The following tables summarize the AAT assets and liabilities held for sale, the operating results for AAT and its impairment charge, and AAT’s summary cash flow components:

American Access Technologies, Inc.  

Assets and Liabilities held for sale

(in thousands)  

 

 

June 30, 2014

 

 

December 31, 2013

 

 

(unaudited)

 

 

 

 

 

Current assets held for sale

$

2,161

 

 

$

3,113

 

Long Term assets held for sale

 

1,022

 

 

 

2,005

 

Total assets held for sale

$

3,183

 

 

$

5,118

 

Current liabilities held for sale

 

719

 

 

 

536

 

Total Liabilities held for sale

 

719

 

 

 

536

 

Net assets and liabilities held for sale

$

2,464

 

 

$

4,582

 

 

 

American Access Technologies, Inc.

Condensed Statements of Operations

Unaudited

(in thousands)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Operating income (loss) from discontinued operations

$

(84

)

 

$

(60

)

 

$

(352

)

 

$

(135

)

Provision for income taxes

—

 

 

—

 

 

—

 

 

—

 

Valuation provision ("Impairment") on assets for sale

 

(2,300

)

 

—

 

 

 

(2,300

)

 

—

 

Income taxes on discontinued operations

—

 

 

—

 

 

—

 

 

—

 

Net loss after tax

$

(2,384

)

 

$

(60

)

 

$

(2,652

)

 

$

(135

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Access Technologies, Inc.

Condensed Statements of Cash Flow Components

Unaudited

(in thousands)

 

 

 

Six Months Ended June 30,

 

 

 

2014

 

 

2013

 

Net cash (used in) operating activities

 

$

(260

)

 

$

(82

)

Net cash (used in) investing activities

 

 

(14

)

 

 

(117

)

Net cash (used in) financing activities

 

—

 

 

 

(54

)

Net increase (decrease) in cash and cash equivalents

 

$

(274

)

 

$

(253

)