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Dispositions

9 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Note 5 — Dispositions

Discontinued Operations of LXL Tickets, Inc.

During the quarter ended December 31, 2017, management of the Company made the decision to shut down the operations of LXL Tickets effective December 31, 2017. Management concluded that the operations of LXL Tickets were not going to improve due to decreased consumer demand for nightlife and concert events and since LXL Tickets was no longer providing ticketing services to four major venues in 2017 that had produced significant revenues in 2016, ongoing litigation between such customers and Wantickets and such customers refusing to continue to work with LXL Tickets as a result of Wantickets’ non-payment for prior services, and continuing significant losses incurred by LXL Tickets through December 31, 2017 that were supposed to be funded by sellers of Wantickets’ assets that were never funded as required under the Wantickets’ Asset Purchase Agreement. The Company also decided to make a strategic shift in the focus of its operations through the acquisition of Slacker that closed in December 2017 (see Note 4 – Business Combinations). Therefore, it began laying off LXL Tickets’ employees during the quarter ended December 31, 2017, such that there was one employee left as of December 31, 2017. Management considers abandonment to have occurred at December 31, 2017 since LXL Tickets stopped accepting orders and using the acquired assets as of that date. To accomplish this, the results of LXL Tickets’ operations are reported as discontinued operations in accordance with ASC 205, Presentation of Financial Statements. Management currently does not have any plans to sell LXL Tickets or its remaining assets.

For the three and nine months ended December 31, 2017, the Company has recognized a ($0.3) million and ($1.1) million loss, respectively, from the operations of LXL Tickets. Additionally, the Company has recognized a ($2.8) million loss from disposal of LXL Tickets for the three and nine months ended December 31, 2017. The Company is presenting the operating loss of LXL Tickets and the loss from disposal of LXL Tickets on its condensed consolidated statements of operations under the heading “Loss from operations of discontinued operations.” For the nine months ended December 31, 2017, the Company recognized total operating and investing cash flows from LXL Tickets of less than $0.1 million and $0, respectively.

Major line items constituting net loss of the discontinued operations of LXL Tickets are as follows for the three months ended December 31, 2017 and the period from May 5, 2017 through December 31, 2017 (in thousands):

		Three Months Ended December 31, 2017				Period Ended December 31, 2017
Revenues		$	71			$	640
Cost of Sales			-				150
Selling, general and administrative expenses			395				1,606
Loss on operations of LXL Tickets			(324	)			(1,116	)
Loss from disposal of LXL Tickets			(2,786	)			(2,786	)
Loss from operations of discontinued operations		$	(3,110	)		$	(3,902