Note 12 - Discontinued Operations

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

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

12. DISCONTINUED OPERATIONS

On October 31, 2022, the Company sold its Brazil Operations. The Company's sale of the Brazil Operations meets the criteria for discontinued operations presentation within the Consolidated Financial Statements at December 31, 2022, as the decision to exit the operations represented a strategic shift of the future operations and with separately reported financial information available, as the Brazil Operations represent substantially all of the revenue and expenses of the Company's previously reported Power Delivery segment.

Accordingly, such assets and liabilities at December 31, 2022, results of operations for the year ended December 31, 2022 and cash flows for the year ended December 31, 2022 have been classified as discontinued operations on our Consolidated Balance Sheet, Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively. The classification of these assets, liabilities, results of operations and cash flows as discontinued operations requires retrospective application to financial information for all periods prior to the sale. There were no assets or liabilities associated with discontinued operations at  December 31, 2023 and 2022.

The following table summarizes the components of income (loss) from discontinued operations (in thousands):

	Year Ended December 31,
	2023		2022
Revenue	$	—	$	9,942
Costs and expenses		—		9,630
Impairment		—		1,447
Cumulative foreign exchange loss		—		626
Other income and interest expense, net		—		(84	)
Income (loss) from discontinued operations before income taxes		—		(1,845	)
Income tax expense		—		149
Loss from discontinued operations, net of income taxes	$	—	$	(1,994	)

Impairment of Brazil Operations

The Company recorded an impairment charge of $1.4 million during the third quarter of 2022 as it determined that the decision to exit the Brazil Operations was an event that indicated that the group of assets' carrying value may not be recoverable. The Company estimated the fair value of $0.9 million (calculated as the estimated net proceeds that would be received in an orderly and timely sale of the operations) less the carrying value of the Brazil net assets at September 30, 2022. The impairment charge is included within income (loss) from discontinued operations, net of tax as reported in the Consolidated Statements of Operations for the year ended December 31, 2022.

Segment Reporting

As a result of the classification of the Brazil Operations as discontinued operations, the Company believes that it only has one reporting segment.