Note 3 - Assets Held for Sale and Discontinued Operations

9 Months Ended

Oct. 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 October 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. We anticipate completion of a pending sale of lease pool equipment in the fourth quarter, and expect the sale of our discontinued operations to be substantially completed by January 31, 2023.

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

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

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

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

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

	For the Three Months Ended October 31,						For the Nine Months Ended October 31,
	2022			2021			2022			2021
Revenues:	(in thousands)
Revenue from discontinued operations	$	—		$	53		$	—		$	840
Cost of sales:
Cost of discontinued operations		24			86			72			791
Operating expenses:
Selling, general and administrative		145			502			359			1,222
Recovery of doubtful accounts		—			(5	)		—			(450	)
Depreciation and amortization		—			1			—			4
Total operating expenses		145			498			359			776
Operating loss		(169	)		(531	)		(431	)		(727	)
Other (expenses) income (including $1,626 of cumulative translation loss)		(1,677	)		41			(1,191	)		37
Loss before income taxes from discontinued operations		(1,846	)		(490	)		(1,622	)		(690	)
Provision for income taxes from discontinued operations		—			(9	)		—			(13	)
Net loss from discontinued operations		(1,846	)		(499	)		(1,622	)		(703	)

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

	For the Nine Months Ended October 31,
	2022			2021
	(in thousands)
(Gross profit) loss from sale of assets held-for-sale	$	(382	)	$	388
Recovery of doubtful accounts	$	—		$	(450	)
Non-cash cumulative translation adjustment for discontinued operations	$	1,626		$	—
Sale of assets held for sale	$	383		$	3,948