Note 6 - Discontinued Operations

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

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

Note

6

 

– Discontinued Operations

Dillco

On

October 29, 2018,

Enservco announced that it would be selling or closing the Dillco water hauling business, its associated facilities, and real estate. This was due to eliminate non-strategic, unprofitable operations in order to focus on our core strategic growth business. Effective

November 1, 2018,

the Dillco water hauling business ceased operations for customers. In

December 2018,

we held an auction for all of the Dillco fixed assets which resulted in a gain of approximately

$129,000.

Additionally, we recorded an impairment charge of

$130,000

related to land and building sold subsequent to

December 31, 2018.

The following table represents a reconciliation of the  carrying amounts of major classes of assets and liabilities disclosed as discontinued operations in the Balance Sheets:

	December 31,		December 31,
	2018		2017
Carrying amount of major classes of assets included as part of discontinued operations:
Accounts receivable, net	$	97	$	601
Inventories		-		67
Property and equipment, net		177		1,105
Receivable from equipment sales		760		-
Prepaid expenses and other current assets		7		24
Total major classes of assets of the discontinued operation	$	1,041	$	1,797
Carrying amounts of major classes of liabilities included as part of discontinued operations:
Accounts payable and accrued liabilities		44		189
Total liabilities included as part of discontinued operations	$	44	$	189

The following table represents a reconciliation of the major classes of line items constituting pretax loss of discontinued operations that are disclosed as discontinued operations in the Statements of Operations:

	December 31,			December 31,
	2018			2017
Revenue	$	2,433		$	3,684
Cost of sales		(2,936	)		(3,979	)
Selling, general, and administrative expenses		(69	)		(68	)
Depreciation and amortization		(275	)		(655	)
Other income and expense items that are not major		-			45
Pretax loss of discontinued operations related to major classes of pretax profit		(847	)		(973	)
Pretax gain on sale at auction		129			-
Pretax loss on impairment		(130	)		-
Income tax benefit		-			-
Total loss on discontinued operations that is presented in the Statements of Operations	$	(848	)	$	(973	)