Note 4 - Discontinued Operations

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

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

Note 4. Discontinued Operations

As of June 30, 2020, our former Factoring reportable segment was classified as discontinued operations as it: (i) was a component of the entity, (ii) met the criteria as held for sale, and (iii) had a material effect on the Company's operations and financial results. On July 8, 2020, we closed on the disposition of substantially all of the operations and assets of Transport Financial Services ("TFS"), which included substantially all of the assets and operations of our Factoring reportable segment. The sale consisted primarily of $103.3 million of net accounts receivable, which included $108.7 million of gross accounts receivable, less advances and rebates of $5.4 million. 

We have reflected the former Factoring reportable segment as discontinued operations in the condensed consolidated statements of operations for all periods presented.

The following table summarizes the results of our discontinued operations for the three and nine months ended September 30, 2023 and 2022:

(in thousands)	Three Months Ended September 30,					Nine Months Ended September 30,
	2023			2022		2023			2022
Reversal of contingent loss liability	$	(200	)	$	-	$	(600	)	$	-
Income before income taxes		200			-		600			-
Income tax expense		50			-		150			-
Income from discontinued operations, net of tax	$	150		$	-	$	450		$	-

Reversal of contingent liability for the three and nine months ended September 30, 2023 relates to the reduced exposure of future indemnification by the Company to the purchaser of TFS, Triumph Bancorp, Inc. ("Triumph"), as a result of the collection of covered receivables identified in the amended purchase agreement.

The following table summarizes the major classes of assets and liabilities included as discontinued operations as of  September 30, 2023 and December 31, 2022:

(in thousands)	September 30, 2023		December 31, 2022
Noncurrent deferred tax asset	$	459	$	1,025
Noncurrent assets from discontinued operations		459		1,025
Total assets from discontinued operations	$	459	$	1,025
Liabilities:
Long-term contingent loss liability	$	1,835	$	4,100
Long-term liabilities of discontinued operations		1,835		4,100
Total liabilities from discontinued operations	$	1,835	$	4,100

 

There were $1.7 million of operating cash outflows for the nine months ended September 30, 2023, related to the $1.7 million payment on the indemnification obligation to Triumph and no net cash flows related to discontinued operations for the nine months ended September 30, 2022.