Note 3 - Assets Held for Sale and Discontinued Operations

6 Months Ended

Jul. 31, 2022

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. As a result, the assets, excluding cash, and liabilities of the Leasing Business are considered held for sale and its results of operations are reported as discontinued operations as of July 31, 2022 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, 2023.

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

	July 31, 2022		January 31, 2022
Current assets of discontinued operations:		(in thousands)
Accounts receivable, net		24		177
Inventories, net		1		2
Prepaid expenses and other current assets		113		167
Seismic equipment lease pool and property and equipment, net		40		738
Loss recognized on classification as held for sale		—		(925	)
Total assets of discontinued operations	$	178	$	159

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

	July 31, 2022		January 31, 2022
Current liabilities of discontinued operations:		(in thousands)
Accounts payable	$	—	$	132
Deferred revenue		56		73
Accrued expenses and other current liabilities		122		507
Income taxes payable		24		241
Total liabilities of discontinued operations		202		953

The results of operations from discontinued operations for the three and six months ended July 31, 2022 and 2021 consist of the following:

	For the Three Months Ended July 31,						For the Six Months Ended July 31,
	2022			2021			2022			2021
Revenues:	(in thousands)
Revenue from discontinued operations	$	—		$	757		$	—		$	787
Cost of sales:
Cost of discontinued operations		23			332			48			705
Operating expenses:
Selling, general and administrative		101			378			214			720
Recovery of doubtful accounts		—			(2	)		—			(445	)
Depreciation and amortization		—			2			—			3
Total operating expenses		101			378			214			278
Operating (loss) income		(124	)		47			(262	)		(196	)
Other income (expenses)		(38	)		35			486			(4	)
Income (loss) before income taxes from discontinued operations		(162	)		82			224			(200	)
Provision for income taxes from discontinued operations		—			(3	)		—			(4	)
Net Income (loss) from discontinued operations		(162	)		79			224			(204	)

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

	For the Six Months Ended July 31,
	2022			2021
	(in thousands)
Gross profit from sale of assets held-for-sale	$	(358	)	$	—
Recovery of doubtful accounts	$	—		$	(445	)
Sale of assets held for sale	$	361		$	1,245