Discontinued Operations

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

On June 16, 2021, the Company made the strategic decision to pursue the sale of the operations of Comstock Environmental Services, LLC ("CES"), a subsidiary of Comstock, based on the continued growth of the asset management business as well as its future prospects.

The following table reconciles major line items constituting pretax income (loss) from discontinued operations to net income (loss) from discontinued operations as presented in the consolidated statements of operations (in thousands):


	Year Ended December 31,
		2021		2020
Revenue		$	7,400	$	6,239
Cost of revenue		(5,571)		(4,097)
Selling, general, and administrative		(2,417)		(2,077)
Depreciation and amortization		(60)		(152)
Other income (expense)		(103)		28
Goodwill impairment		(1,702)		—
Pre-tax income (loss) from continuing operations		(2,453)		(59)
Provision for (benefit from) income tax		(23)		—
Net income (loss) from discontinued operations		$	(2,430)	$	(59)

The following table reconciles the carrying amounts of major classes of assets and liabilities of discontinued operations to total assets and liabilities of discontinued operations that were classified as held for sale in the consolidated balance sheets (in thousands):


	December 31,
	2021		2020
Carrying amounts of major classes of assets held for sale:
Accounts receivable	$	2,075	$	1,420
Accounts receivable - related parties	—		30
Prepaid expenses and other current assets	129		27
Total current assets	2,204		1,477
Fixed assets, net	106		96
Goodwill	—		1,702
Intangible assets, net	3		36
Total assets	$	2,313	$	3,311

Carrying amounts of major classes of liabilities held for sale:
Accrued personnel costs	$	153	$	109
Accounts payable and accrued liabilities	1,015		633
Loans payable	26		—
Total liabilities	$	1,194	$	742

As part of our annual goodwill assessment, we determined that there were potential indicators of impairment based on facts and circumstances that have arisen surrounding the divestiture of CES (See Note 1). Upon performing the quantitative two-step impairment test, the Company determined that the carrying value of CES significantly exceeded its current fair value, which was estimated using Level 1 inputs. As a result, a $1.4 million impairment loss was recorded in December 2021 to fully write off the remaining goodwill balance. This impairment loss, along with the $0.3 million goodwill impairment loss recorded in the Company's fiscal second quarter, resulted in a cumulative $1.7 million goodwill impairment charge in 2021 that is reflected in net income (loss) from discontinued operations in the consolidated statements of operations.