Note 3 - Assets Held for Sale and Discontinued Operations

9 Months Ended

Oct. 31, 2021

Notes to Financial Statements

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

3. Assets Held for Sale and Discontinued Operations

On July 27, 2020, the Board determined to exit the Leasing Business, which comprised essentially all operations of the Equipment Leasing segment. As a result, the assets, excluding cash, and liabilities of the Leasing Business are considered held for sale and the operations of the business are reported as discontinued operations as of October 31, 2021 and for all comparative periods presented in these condensed consolidated financial statements. The Company originally anticipated selling the discontinued operations in multiple transactions, potentially involving the sale of legal entities, assets, or a combination of both, within the twelve months ending July 31, 2021. The Company now believes it will complete the process by January 31, 2022.

The assets reported as held for sale consist of the following:

	October 31, 2021			January 31, 2021
Current assets of discontinued operations:
Accounts receivable, net		1,091			1,668
Inventories, net		102			352
Prepaid expenses and other current assets		134			150
Seismic equipment lease pool and property and equipment, net		2,602			4,478
Loss recognized on classification as held for sale		(3,341	)		(2,327	)
Total assets of discontinued operations	$	588		$	4,321

The liabilities reported as held for sale consist of the following:

	October 31, 2021		January 31, 2021
Current liabilities of discontinued operations:
Accounts payable	$	95	$	59
Deferred revenue		73		73
Accrued expenses and other current liabilities		693		831
Total liabilities of discontinued operations		861		963

The results of operations from discontinued operations for the three and nine months ended October 31, 2021 and 2020 consist of the following:

	For the Three Months Ended October 31,						For the Nine Months Ended October 31,
	2021			2020			2021			2020
Revenues:
Revenue from discontinued operations	$	53		$	313		$	840		$	5,731
Cost of sales:
Cost of discontinued operations		86			263			791			4,389
Operating expenses:
Selling, general and administrative		502			1,146			1,222			4,322
(Recovery) provision for doubtful accounts		(5	)		—			(450	)		470
Depreciation and amortization		1			43			4			128
Total operating expenses		498			1,189			776			4,920
Operating loss		(531	)		(1,139	)		(727	)		(3,578	)
Other income (expenses)		41			(75	)		37			—
Loss on disposal (including $2,745 of cumulative translation loss)		—			—			—			(1,859	)
Loss before income taxes		(490	)		(1,214	)		(690	)		(5,437	)
Provision for income taxes		(9	)		(6	)		(13	)		(706	)
Net income loss		(499	)		(1,220	)		(703	)		(6,143	)

The significant operating and investing noncash items and capital expenditures related to discontinued operations are summarized below:

	For the Nine Months Ended October 31,
	2021			2020
Depreciation and amortization	$	—		$	1,771
Gross profit from sale of lease pool equipment	$	—		$	(1,326	)
(Recovery) provisions for doubtful accounts	$	(450	)	$	470
Loss on disposal of discontinued operations	$	—		$	1,859
Sale of used lease pool equipment	$	—		$	2,010
Sale of assets held for sale	$	3,948		$	734
Purchase of seismic equipment held for lease	$	—		$	(110	)