Discontinued Operations (Tables)

9 Months Ended

May 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups Including Discontinued Operations, Reconciliation of Gross Proceeds to Net Proceeds as Presented in Cash Flow Statement

The following is a reconciliation of the gross proceeds to the net proceeds from the Vensure Asset Sale as presented in the condensed consolidated balance sheet for the period ended May 31, 2022.

Gross proceeds	$	19,166,000
Cash received at closing – asset sale	(9,500,000)
Cash received at closing – working capital	(166,000)
Gross note receivable	$	9,500,000
Less:  Transaction reconciliation – estimated working capital adjustments	(2,604,000)
Adjusted Note Receivable	6,896,000
Reserve for estimated potential claims	(2,892,000)
Reserve for potential collectability concerns	$	(4,004,000)
Long-term note receivable, estimated net realizable value	$	—

Disposal Groups, Including Discontinued Operations

The carrying amounts of the classes of assets and liabilities from the Vensure Asset Sale included in discontinued operations are as follows:

	May 31, 2022		August 31, 2021
Cash	$	—	$	—
Accounts receivable and unbilled account receivable	—		—
Prepaid expenses and other current assets	—		—
Deposits – workers’ compensation	—		356,000
Total current assets	—		356,000
Fixed assets, net	—		—
Deposits – workers’ compensation	—		883,000
Total assets	$	—	$	1,239,000
Accounts payable and other current liabilities	$	—	$	—
Payroll related liabilities	—		—
Accrued workers’ compensation cost	1,251,000		1,516,000
Total current liabilities	1,251,000		1,516,000
Accrued workers’ compensation cost	3,074,000		3,765,000
Total liabilities	4,325,000		5,281,000
Net liability	$	(4,325,000)	$	(4,042,000)

Schedule of Disposal Groups Including Discontinued Operations Income Statement

Reported results for the discontinued operations by period were as follows:

	For the Three Months Ended				For the Nine Months Ended
	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Revenues	$	—	$	—	$	—	$	—
Cost of revenue	132,000		(23,000)		283,000		1,512,000
Gross profit (loss)	(132,000)		23,000		(283,000)		(1,512,000)
Operating expenses:
Salaries, wages and payroll taxes	—		—		—		—
Commissions	—		—		—		—
Total operating expenses	—		—		—		—
(Loss) income from discontinued operations	$	(132,000)	$	23,000	$	(283,000)	$	(1,512,000)