DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

The Company continued to explore opportunities for the sale of the UMO Business. On February 1, 2023, the Company sold all of its equity interests in Vertex OH, which owned our Heartland refinery located in Columbus, Ohio (the “Heartland Refinery”) for $87.3 million net cash settlement. The sale also included all property and assets owned by Vertex OH, including inventory associated with the Heartland Refinery, and all real and leased property and permits owned by Vertex OH, and all used motor oil collection and recycling assets and operations owned by Vertex OH. On June 9, 2023, the Company received $4.8 million as a net working capital adjustment settlement pursuant to the sale agreement.

Accordingly, the Company has presented this division (i.e., the Heartland Assets and Operations) as discontinued operations while reclassifying the other UMO Business operations out of assets held for sale, and all liabilities of the UMO Business out of liabilities held for sale, other than in connection with the Heartland Assets and Operations. See “Note 1. Basis of Presentation and Nature of Operations” for financial information that has been reclassified as continued operations.

The following summarized financial information has been reclassified as continued operations for the three months ended June 30, 2022 (in thousands):


	June 30, 2022
Assets and liabilities changes:
Assets held for sale to assets held and used	$	71,585
Liabilities held for sale to liabilities held and paid	$	(33,033)
Net income changes:
Net income from discontinued operations to continued operations	$	16,670

The following summarized financial information has been segregated from continuing operations and reported as discontinued operations for the three and six months ended June 30, 2023, and 2022 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues	$	—	$	23,832	$	7,366	$	42,759
Cost of revenues (exclusive of depreciation shown separately below)	—		12,735		4,589		22,918
Depreciation and amortization attributable to costs of revenues	—		391		124		782
Gross profit	—		10,706		2,653		19,059
Operating expenses:
Selling, general and administrative expenses (exclusive of depreciation shown separately below)	—		2,220		632		3,938
Depreciation and amortization expense attributable to operating expenses	—		62		21		125
Total operating expenses	—		2,282		653		4,063
Income from operations	—		8,424		2,000		14,996
Other income (expense)


Interest expense	—		(8)		—		(23)
Total other expense	—		(8)		—		(23)
Income before income tax	—		8,416		2,000		14,973
Income tax expense	—		—		(528)		—
Gain on sale of discontinued operations, net of $1,453 and $18,671 of tax for three and six months ended June 30, 2023	3,340		—		52,208		—
Income from discontinued operations, net of tax	$	3,340	$	8,416	$	53,680	$	14,973

The assets and liabilities held for sale on the Consolidated Balance Sheets as of December 31, 2022 are as follows (in thousands):


	December 31, 2022
ASSETS
Accounts receivable, net	$	7,490
Inventory	1,674
Prepaid expenses	183
Total current assets	9,347

Fixed assets, at cost	19,746
Less accumulated depreciation	(9,140)
Fixed assets, net	10,606

Operating lease right-of use assets	44
Intangible assets, net	563
Total noncurrent assets	11,213


Assets held for sale	$	20,560

LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	2,750
Accrued expenses	629
Operating lease liability	45





Liabilities held for sale	$	3,424