Assets Held for Sale

12 Months Ended

Jan. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

As of January 31, 2019, the Company classified the assets of its Australian subsidiary, SAP, as held for sale. This determination as described in Item 1. was based on changes to the business model for this entity which were not consistent with the Company's overall objectives.

The Company expects to complete the sale of SAP in the first quarter of fiscal 2020. The sales price is approximately $660,000 of which the Company will receive approximately $240,000 in cash at closing and an unsecured, non-interest bearing two year note receivable in the amount of $420,000. The agreement also contains normal course working capital adjustments for a period of 60 days subsequent to the closing date. In addition to these terms, there are certain contingent amounts that the buyer is required to pay the Company in the event of the sale of selected inventory items or the collection of certain receivables that occur within 60 days post close. While these could be favorable to the Company, no value was assigned to the contingent items in connection with the calculation of the loss on sale of SAP that, the Company recorded in the Statement of Operations for the twelve months ended January, 31, 2019.

Due to the classification of SAP as held for sale, the Company reclassified SAP's assets and liabilities from their respective financial lines on the Balance Sheet as of January 31, 2019 to current and non-current assets and liabilities held for sale. For the twelve months ended January 31, 2019, the Company recorded a loss of approximately $500,000 to the Statement of Operations.

The table below provides additional details related to the assets and liabilities for SAP as of January 31, 2019 (in thousands):



Current assets:
Cash and cash equivalents	$	458
Accounts receivable, net	1,256
Inventories, net	420
Prepaid expenses and other current assets	68
Total current assets held for sale	$	2,202

Seismic equipment lease pool and property and equipment, net	$	259
Other assets	27
Long-term assets held for sale	$	286

Current liabilities:
Accounts payable	$	479
Accrued expenses and other current liabilities	413
Current liabilities held for sale	$	892

Sale of MSE

In August 2018, the Company completed the sale of its wholly owned Russian subsidiary, Mitcham Seismic Eurasia LLC for total contractual proceeds of approximately $1.2 million U.S. dollars. The proceeds are due in monthly installments of principal and interest, accruing at a rate of 9% per annum, with the balance due on or before August 31, 2019. As a result of the sale, the company recorded a loss of approximately $4.9 million, including recognition of approximately $5.4 million of cumulative translation losses which, had been historically recorded in Accumulated Other Comprehensive Loss, a component of equity.