Note 6 - Discontinued Operations

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

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

Note

6

 

– Discontinued Operations 

Heat Waves Water Management

During

December, 2019,

the Heat Waves Water Management business ceased operations for customers. The decision to discontinue HWWM was made due to its history of net losses, declining revenues, and its failure to generate posiitive operating cash flow. The Company plans on selling off the HWWM assets during

2020.

HWWM was previously reported in the Water Transfer Services segment, however, the Company redefined its segments for the year ended

December 31, 2019,

and Water Management Services is

no

longer a reporting segment.

Dillco

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,
	2019		2018
Carrying amount of major classes of assets included as part of discontinued operations:
Accounts receivable, net	$	175	$	978
Inventories		-		-
Property and equipment, net		1,373		2,376
Receivable from equipment sales		-		760
Prepaid expenses and other current assets		12		45
Other assets		57		-
Total major classes of assets of the discontinued operations	$	1,617	$	4,159
Carrying amounts of major classes of liabilities included as part of discontinued operations:
Accounts payable and accrued liabilities		47		341
Other liabilities		59		-
Total liabilities included as part of discontinued operations	$	106	$	341

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,
	2019			2018
Revenue	$	3,303		$	6,593
Cost of sales		(4,446	)		(6,908	)
Sales, general, and administrative expenses		(23	)		(101	)
Depreciation and amortization		(1,177	)		(1,393	)
Other income and expense items that are not major		11			3
Pretax loss of discontinued operations related to major classes of pretax profit		(2,332	)		(1,806	)
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	$	(2,332	)	$	(1,807	)