Note 3 - Discontinued Operations and Sale of a Business

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

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

3. DISCONTINUED OPERATIONS AND SALE OF A BUSINESS

As part of the Company’s stated strategy to transform Orbital Infrastructure Group into a diversified energy infrastructure services platform serving North American energy customers, the Company’s board of directors made the decision to divest of its Orbital Gas subsidiaries. The Orbital Gas subsidiaries provide proprietary gas measurement and sampling technologies and the integration of process control and measuring/sampling systems. They are legacy businesses that are not part of the Company’s strategy of building an infrastructure services company serving the electric power, telecommunications and renewable markets. The disposition of the Orbital Gas subsidiaries will facilitate the Company’s restructuring and cost savings initiatives and are intended to realign and simplify its business structure and better position the Company for future growth and improved profitability. In the fourth quarter of 2021, the Company recorded a $9.2 million impairment related to its U.K. operations to write the value of its investment in the U.K. operations to its expected realizable value of 3 million GBP ($4.1 million on December 31, 2021).

The Company's U.K. operations were divested in May 2022 and most of the assets of the North American operation were divested in the third quarter of 2022. At March 31, 2023 and December 31, 2022, the remaining assets held for sale were the Company's VE Technology intellectual property and certain fixed assets at Eclipse Foundation Group.

Assets held for sale that are included on the Company's balance sheet, relate to the company's discontinued businesses, and are described below. As of March 31, 2023 and December 31, 2022 there were no liabilities held for sale.

	As of		As of
	March 31,		December 31,
(in thousands)	2023		2022
Carrying amounts of the major classes of assets included in discontinued operations:
Property and equipment	$	1,385	$	1,385
Other intangible assets		1,813		1,813
Total assets of the disposal group classified as held for sale	$	3,198	$	3,198

Selected data for these discontinued businesses consisted of the following:

Reconciliation of the Major Classes of Line Items Constituting Pretax Loss from

Discontinued Operations to the After-Tax Loss from Discontinued Operations That Are

Presented in the Condensed Consolidated Statement of Operations

(in thousands)	For the Three Months
	Ended March 31,
Major classes of line items constituting pretax loss from discontinued operations:	2023			2022
Revenues	$	85		$	3,986
Cost of revenues		(191	)		(2,694	)
Selling, general and administrative expense		(162	)		(2,139	)
(Provision) credit for bad debt		—			(91	)
Interest expense		—			(7	)
Other expense		—			(8	)
Pretax loss from discontinued operations		(268	)		(953	)
Income tax expense		—			—
Total loss from discontinued operations	$	(268	)	$	(953	)

Net cash provided by operating activities of discontinued operations for the  three months ended March 31, 2023 was $ 0.6 million.

Net cash provided by investing activities of discontinued operations for the three months ended March 31, 2023 was $0 dollars.