Note 4 - Discontinued Operations

9 Months Ended

Oct. 31, 2023

Notes to Financial Statements

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

4. Discontinued Operations

On August 21, 2023, the Company sold Klein pursuant to the SPA with the Buyer. As a result, the assets and liabilities of Klein have been reclassified as assets, excluding cash, and liabilities of discontinued operations at January 31, 2023 and it’s results of operations are reported as discontinued operations for the three and nine-month periods ended October 31, 2023 and 2022.

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 were considered held for sale and reported as discontinued operations at January 31, 2023, and its results of operations were reported as discontinued operations for the three and nine month periods ended October 31, 2022. As of February 1, 2023, discontinued operations of the Leasing Business were considered materially completed.

The assets and liabilities reported as part of discontinued operations consist of the following:

	January 31, 2023
Current assets of discontinued operations:
Accounts receivable, net	$	746
Inventories, net		4,292
Prepaid expenses and other current assets		745
Total current assets of discontinued operations	$	5,783
Property and equipment, net		2,992
Intangible assets, net		1,297
Total assets of discontinued operations	$	10,072
Current liabilities of discontinued operations:
Accounts payable	$	1,607
Accrued and other liabilities		813
Total liabilities of discontinued operations	$	2,420

The results of operations from discontinued operations for the three and nine months ended October 31, 2023 and 2022 consist of the following:

	For the Three Months Ended October 31,						For the Nine Months Ended October 31,
	2023			2022			2023			2022
Revenues:	(in thousands)
Revenue from discontinued operations	$	140		$	1,847		$	3,318		$	6,543
Cost of sales:
Cost of discontinued operations		11			1,230			1,982			3,981
Operating expenses:
Selling, general and administrative		179			680			1,348			2,109
Research and development		45			431			689			1,628
Depreciation and amortization		18			136			324			402
Total operating expenses		242			1,247			2,361			4,139
Operating loss		(113	)		(630	)		(1,025	)		(1,577	)
Other income (expense) (Including $1,626 of currency translation loss for the three and nine months ended October 31, 2022.)		2			(1,646	)		73			(1,106	)
Gain on sale of Klein		2,393			—			2,393			—
Income (loss) before income taxes from discontinued operations		2,282			(2,276	)		1,441			(2,683	)
Provision for income taxes from discontinued operations		(5	)		—			(17	)		—
Net income (loss) from discontinued operations		2,277			(2,276	)		1,424			(2,683	)

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

	For the Nine Months Ended October 31,
	2023			2022
	(in thousands)
Gross profit from sale of assets held-for-sale	$	—		$	(382	)
Gain on sale of Klein	$	(2,393	)	$	—
Non-Cash cumulative translation adjustment for discontinued operations	$	—		$	1,626
Sale of assets held for sale	$	—		$	383